Faulu Microfinance Bank has secured more than KSh 900 million from its parent company, Old Mutual, to enhance its operations and revamp its business model for sustained growth.
The company plans to utilize the funds to expand its digital banking services and to realign its distribution channels and human resources to promote sustainable growth.
Faulu Microfinance Bank states that this is part of its strategy to revamp its performance by becoming a leading bank for traders and a provider of digital financial services.
“Over the last 18 months, we have made significant investments 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 our intention is 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 over KSh900 million towards these operating model enhancements, to reposition Faulu as the digital bank of now,” he added.
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The Bank has strategically decided to reassess its distribution channels to align with the new business model, which is backed by an active network of over 70 agencies.
Faulu also announced plans to expand its support for Micro, Small, and Medium Enterprises (MSMEs) and to implement an improved distribution network. The bank recognizes a significant opportunity to support MSMEs, which are considered the backbone of Kenya’s economy.
Faulu, founded more than three decades ago, has emerged as one of Kenya’s foremost financial services brands. As a member of the Old Mutual East Africa Holdings Group, the bank has begun restructuring its operations to meet increasing customer preferences for digital services, while also aiming to streamline costs and enhance competitiveness.
Old Mutual Holdings CEO, Arthur Oginga added: “With this change, we are both enhancing the Faulu service offering to our existing and future customer network, as well as positioning the business to deliver more value sustainably. 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, further affirmed his optimism regarding the operational announcements, emphasizing, “This realignment aligns with our commitment to being our customers’ most reliable financial partner and supporting their financial aspirations. It is also crucial for the bank’s sustained competitiveness in Kenya’s dynamic financial services landscape. We are enthusiastic about refocusing the Faulu business, confident that it will generate increased value for our customers and our organization.”
By Frank Mugwe
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