Choice Microfinance Bank drives digital transformation with innovative strategies

Choice MFB was granted a community license on May 13, 2015 by the Central Bank of Kenya (CBK) under the Microfinance Act of 2006.

In Summary
  • The bank is now heavily investing in technology to provide an array of digital banking services such as Banking-as-a-Service (BaaS), mobile banking, internet banking, and digital lending.
  • The bank is now heavily investing in technology to provide an array of digital banking services such as Banking-as-a-Service (BaaS), mobile banking, internet banking, and digital lending.

The modern and ever-changing landscape of the banking industry is undergoing immense transformation led by the digital revolution and the growing demands from customers.

Bank clients are demanding access to banking services remotely via mobile devices, personal computers and other digital channels.

Institutions like Choice Microfinance Bank are stepping up to meet these needs with cutting-edge solutions.

Choice Microfinance Bank's strategic foundation rests on maintaining a sustainable competitive advantage. This is achieved through continuous development of resources and capabilities, adapting swiftly to market changes.

The bank's revised business strategies are now focused on being customer-centric, enhancing technology use, and strengthening both capital and liquidity buffers.

Key focus areas for Choice Microfinance Bank include:

  • Technology
  • Service Distribution
  • Marketing
  • Pricing
  • Human Resources
  • Service Quality
  • Finance
  • Research and Development

Choice Microfinance Bank started as a diaspora story that later evolved to become a local story as well. The idea was to create an investment vehicle and an easier international remittance channel to send funds back home from diaspora to Kenya for investment and other financial opportunities.

Choice MFB was granted a community license on May 13, 2015 by the Central Bank of Kenya (CBK) under the Microfinance Act of 2006.

In 2021, a strategic investment transformed Choice. It is currently making adjustments towards new business lines to meet its objectives and expectations of customers, associates, and the shareholders.

An increasing demand for a digital banking experience from bank customers is transforming how the entire banking industry operates.

The bank is now heavily investing in technology to provide an array of digital banking services such as Banking-as-a-Service (BaaS), mobile banking, internet banking, and digital lending.

Notably, Choice's BaaS model will empower Fintech and non-Fintech companies to integrate financial products into their customer journeys seamlessly.  This includes offering services like deposits, payments, and lending.

The bank will manage all aspects of KYC data collection and verification, ensuring compliance with regulatory standards for account opening.

Accounts at Choice MFB earn interest and are insured by the Kenya Deposit Insurance Corporation (KDIC), mirroring features of mobile banking products like those seen with M-Shwari.

However, delivering these products and services efficiently remains a challenge. Choice MFB aims to overcome this by implementing a multichannel banking strategy, which not only offers multiple channels but integrates them to provide a balanced mix of services, pricing, and offers.

Choice MFB has rolled out a new product dubbed Banking as a service (BaaS).

The flagship initiative, Banking as a Service (BaaS), exemplifies how Choice MFB is integrating its digital banking services directly into the offerings of its non-bank partners, thus reaching a broader customer base, including the underbanked and unbanked populations.

Following its acquisition by Wakanda Network Limited in October 2021, Choice Microfinance Bank has not only seen a significant boost in profitability but also strategic enhancements.

The past fiscal year was particularly successful, with impressive figures for net profit margin and return on equity. CEO Bonface Ombui is committed to redefining digital banking, aiming to deliver unmatched value to stakeholders while focusing on customer satisfaction and operational efficiency.

"Our goal is to redefine digital banking, delivering unparalleled value to stakeholders,” CEO Ombui says.

With a bold rebranding initiative, Choice MFB emerges as an innovative force in the financial landscape, poised to reshape the industry.

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