Stanbic Bank has announced to increase to its expenses on women to 15 per cent by 2020, a move it expects to raise its market share.
Currently, the bank's expenses on women is only two per cent out of Sh11.7 billion set annually as capital expenditure.
According to Stanbic bank chief executive Charles Mudiwa, the increase in women participation will be focused on women-owned businesses, especially in government procurement businesses.
“We will commit Sh1.7 billion which will be available for women in suppliers, a deliberate move to increase their tender competitiveness,” Mudiwa said during the launch of a women's banking proposition dubbed Dare to Aspire Dare to Achieve (D.A.D.A).
The move to close the gender gap in women financial inclusion is also set to be reposition strategy for the bank in the market, despite growth in loan book to Sh144.7 billion in three months to March from Sh128.5 billion.
Its non-performing loans also increased by 61.1 per cent to Sh16.7 billion from Sh10.4 billion over the period.
Under, the product DADA the lending institution under Standard Bank Group will also offer Sh20 billion for SME and women to tap into.
Funds will be distributed under a fixed up interest rate depending on amount, project and repayment period.
The initiative in partnership with International Finance Corporation is set to offer credit to the segment that has been referred to have a better loan payback rate.
This comes at a time when financial institutions are adopting an SME-focused lending solutions to reverse the effects of interest rate cap, and increase profitability .
In April, IFC also lend Sh10 billion to Equity Bank to offer as credit to SMEs.
According to IFC country manager Manuel Moses the international financier will adopting a grant relationship in this new venture after several increased lending to local banks to push for capital in the SME sector.
“We are a market based institution and we hope to work with other willing lenders for them to recognise their growth is in lending to SMEs,” Moses said.
IFC under the project has been behind the financing of training on the women's survey and capacity building to achieve the for the women initiative.
