KENYA – Faulu Microfinance Bank, a microfinance bank based in Kenya, has received over KES 900 million (US$7.01M) from its parent company, Old Mutual, to strengthen its operations and reposition its business model for long-term growth.
The firm will use the funds to grow its digital banking offering and realign its distribution channels and human capital to drive sustainable growth.
Faulu Microfinance Bank says this is part of its strategy to improve its performance by becoming a leading traders’ bank and digital finance provider.
“Over 18 months, we have significantly invested in enhancing our digital capabilities. We are eager to become a leader in the digital finance space,” said Faulu Microfinance Bank CEO Julius Ouma.
“Many of the services that the bank offers are now available online, and we intend to make our services more accessible for our customers.
“We will also be leveraging the support of our holding company, Old Mutual, who have committed to these operating model enhancements to reposition Faulu as the digital bank of now!”
The Bank has also decided to review its distribution channels in accordance with its new operating business model, which is supported by an active agency network of more than 70.
Faulu also announced that it would expand its Micro, Small, and Medium Enterprise (MSME) support offering and implement an enhanced distribution network.
The bank sees an excellent opportunity to support MSMEs as they represent the lifeblood of Kenya’s economy.
Faulu, established over 30 years ago, has become one of Kenya’s most recognizable financial services brands.
The Bank, which forms part of Old Mutual East Africa Holdings Group, has initiated the business refocus in response to growing customer demand for digital services and to reduce costs and become more competitive.
“With this change, we are enhancing the Faulu service offering to our existing and future customer network, as well as positioning the business to deliver more value sustainably,” Old Mutual Holdings CEO Arthur Oginga added.
“Faulu has the full backing of Old Mutual in these endeavors, and we are confident that the refocus will drive shared value for all our stakeholders.”
Faulu Chairman George Maina also expressed his confidence in the operational announcements: “This refocus is also in line with our purpose of being our customers’ most trusted financial partner and helping them achieve their financial goals.
“It is also critical to the bank’s ongoing competitiveness in Kenya’s ever-expanding financial services sector. We are excited to refocus the Faulu business as we believe it will deliver enhanced value for our customers and our business.”
Faulu said that it would communicate with customers and stakeholders over the coming days to inform them of these enhancements, which it expects to be fully operational within six months.
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