This archive report was first published on 30 September 2019.
On September 30, 2019, Faulu Microfinance announced plans to expand its physical presence by opening eight new branches across the country at an estimated cost of Ksh.113 million.
The move is part of the tier-one ranked micro-lender's strategy to consolidate its physical presence, despite recent trends by banks to cut costs by trimming their brick and mortar outlets.
According to Faulu Managing Director Apollo, the investment is aimed at improving customer experience by making the bank more accessible and convenient for its growing customer base.
“By expanding the Bank’s footprint and expanding customer touch points, we purpose to be more accessible and offer convenience to our growing customer base,” Apollo said.
Despite investing heavily in digital products, including Faulu VISA cards and mobile banking, Faulu's focus on physical presence is evident in its recent piloting of agency banking and the subsequent roll-out of the model in April.
The lender's expansion is backed by a significant increase in net profits, which jumped by 83 percent to Ksh.190.4 million in 2018, driven by increased lending.
The new branches will be located in Ugunja, Kapenguria, Homabay, Kericho, Busia, Voi, Bondo, and Limuru.
