THE COOPERATIVE BANK OF KENYA REVIEW

The bank runs fair operations that have seen its' recent growth. It is starting to rise and exploit the large market base in the commercial banking sector.
The bank runs fair operations that have seen its' recent growth. It is starting to rise and exploit the large market base in the commercial banking sector.

The cooperative bank is one of the leading vital banks in Kenya.It has operating licensing by the Kenya Central Bank and the national banking regulator.Additionally,they have over 7.5 million accounts. Providing services to Sacco’s led to the growth and expansion of the bank in the Kenyan market.

Overview

The Cooperative bank remains vital to the Kenyan Financial platform.Moreover,The bank has been around for the longest time and it continues to serve a large customer base.Also, the bank is vital to helping Sacco’s run their businesses.

The bank runs fair operations that have seen its’ recent growth. It is starting to rise and exploit the large market base in the commercial banking sector.

Modern banking has been an easy way for banks to connect with their customers.While they agree that transactions are moving online.However,they still want to serve people who prefer walk-ins and physical services.

Although the bank performs well, they can improve their digital transactions with platforms like PayPal and other global wallets.

Management

At its helm is the board of directors composed of 18 members. John Murugu is the Chairman of the bank. Gideon Maina Muriuki is the bank’s CEO and managing director.

Furthermore,the bank has seven other managing directors who assist the CEO in running the business. The leadership is competent, and they have been working endlessly to meet the changing market needs.

Branches and Recent Expansions

In January 2022, CEO Gideon Muriuki announced that the bank would open seven new branches.The bank is adding to its list of centers in the country.The aim is to increase their presence in the market by moving nearer their customers.

The new venture will increase their branches to 200.In addition,It all focuses on building a presence in high-traffic areas like Kamakis in Eastern Bypass and Mwiki/ Kasarani.

The cooperative bank is one of the leading vital banks in Kenya

The lender prioritizes online banking, with 90% of the transactions available to online users.Needless to say,The reason to exploit the online platform is to connect better with most retail clients, agents, SACCOs, and individuals.

While the CEO accepts online banking is taking over, he sees it as a compliment for brick-and-mortar services. Bank branches and ATM points are integral even as some banks abolish them to cut costs.Furthermore,He terms it as wishful thinking as customers prefer this model of services.

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Many banks are downsizing on opening new branches as they are too costly, yet, they can exploit other avenues. Alternative channels like mobile and internet banking and agents are gaining ground.

While this is true, businesses and retail clients need to use traditional services. Closing branches can lead to the loss of clients who need these services.

The bank looks forward to exploiting more opportunities in the Kenyan market.

Loans and Lending partnerships

A recent partnership with the international finance corporation, IFC has set plans to lend money to healthcare providers at favorable rates. The new plan targets to offer hospitals, clinics, and laboratories with up to 90% asset financing with a 200million cap. Also, they must have a maximum of 300 employees. 

Under the deal, local small and medium-sized centers can access affordable loans in their local currency.

Co-operative bank is a critical player in the lending sector in Kenya. Their rates are friendly,Above all,they stand out as the top market players attracting decent backup of people who enjoy their services.

Cooperative bank Loans

Cooperative bank loans are available to all account holders.In summary,Here are the types of loans available for personal banking.

Personal loans

Employed people and those with a regular income can borrow between 50,000 to 4,000,000. It is repayable in 96 months. The bank approves within 48 hours of application.

Salary advance

Allows members to borrow money between 3,000 and 100,000.In fact,the process is instant and has a repayment period of 3 months.

Asset Finance

Asset finance helps you acquire assets without worries. They can help you acquire things like new movable assets or second-hand ones.Moreover,You can use the loan to buy laptops, medical equipment, generators, etc. The repayment period is flexible.

Mkopo wa Kujengana

Groups can apply for this loan if recognized by the government and other relevant authorities. Self-help can acquire money up to five times their accumulated cash. They get a debit book and co-op cash debit card. Also, they get monthly statements.

Good Homes Mortgages

Good homes mortgages are ideal for acquiring a home.They have end-to-end real estate solutions. You can get the loan in multiple currencies like GBP, EUR, USD, and KSH.

Mobile loans

Users can access mobile loans through the M-Coop Cash platform. The mobile loan minimum is 1000 and a maximum amount of 500000. Additionally, their repayment period is 1 to 3 months.

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Interest rates

Interest rates for savings accounts stand at 3% P.a.

The lending rate fee stands at 13.5% and a benchmark rate of 9.5%.

ATM fees

Coop bank charges an ATM fee of 30 shillings for every withdrawal below 5000.Moreover, Depositing money at an agent also attracts a fee of sh20.

When obtaining credit and debit cards, you have to pay a one-time fee. Any replacement cost is 500.

Accounts

Coop Bank currently offers six account types to their customers. Here is a breakdown of their account type offers.

  • A salary account is ideal for working-class Kenyans. With the account, you can receive a salary. Additionally, it enables you to access personal loans and salary advance loans.
  • Current Accounts are vital for depositing and withdrawing money at any time. They are flexible to accommodate deposits and withdrawals of any amount of money. Additionally, traders can open a current account for their businesses.
  • Children’s account is a banking service for little children. It allows little ones to save money.
  • Youth Account (YEA Access Account) is applicable for young people between 18 and 30. They can save money and plan their future with this account. The account is free of charge, and they get an ATM card upon request.
  • Goldfish Account works well for people with a high net worth. The minimum deposit is 50,000. Also, the bank charges 400/ monthly fees for amounts lower than the minimum deposit.
  • Hekima Savings Account allows people to save money stress-free. There are no minimum deposit requirements or opening fees. Interest is calculated daily and paid every end of three months. One can make withdrawals every quarter if one wishes.

Online and M-Pesa Transactions

The cooperative bank has a mobile app for their customers.Mobile banking has really made it easier to access their services.In addition,it has a paybill number users can utilize to deposit money.However,The limit for M-Pesa users is 70,000.

The bank’s swift code is CPBKGB22. Digital transactions are easier using cooperative bank online banking. Also, connecting your bank account to online wallets is fast and convenient. But, the cooperative bank customer care is yet to learn how the systems work and how they can support digital transactions.

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Customers can use apps and their online platform to check eligibility for cooperative bank loans.

How to deposit money from Mpesa to cooperative bank?

The cooperative paybill number is 400200. Users can deposit from Mpesa to cooperative bank. The process is easy, and all they have to do is use the paybill number followed by the account number and amount. Enter your M-Pesa pin at the end, and you are all set.

To transfer money from the bank to your M-Pesa, you can withdraw from the account using the app. It will reflect on your Mpesa account right away. You can visit the cooperative bank online platform to download application forms.

Why do they stand out from other banks?

Cooperative bank won the award of the best overall bank in 2019.Not only was it recognized has the best overall bank in 2019,but also the best in sustainable financing for small and medium enterprises.

Besides that,it also got accolades for being the third most innovative bank in sustainable finance. It is also the second-best informal sector case study.

Cooperative bank offers a good banking experience with a shorter waiting period for loan processing. Their online platforms work great they have some of the best integrations to online platforms.

What features do they not have?

The bank offers very little for businesses and MSMEs. Coop has done very little to diversify offers for business banking.

The Good

  • Efficient services
  • Friendly lending rates
  • Great customer care services
  • Modern banking services
  • Friendly account rates

The bad

  • The modern banking still needs a lot more to be done

Verdict

The cooperative bank remains a key player in the banking sector. Their friendly services and quality customer care create the best customer experience. It has consistently provided stable financial services for its customers.

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