According to Chief Executive Officer John Gachora, Kenya-based NCBA Group is in talks with a Ghanaian lender about forming a partnership to expand in the West African market.
“We’re actually looking into having something this year,” Gachora said in a Thursday interview, without naming the company. “We’re collaborating with a local bank, and we hope to launch something there soon.”
NCBA already has operations in Ivory Coast, where it provides mobile micro-loan and savings services in collaboration with an MTN Group unit, Gachora said in Nairobi, Kenya’s capital. Tanzania, Uganda, and Rwanda all have subsidiaries of the bank.
The lender is also considering entering Nigeria, but is wary of competitors and regulatory hurdles. “Nigeria has been a fintech Savannah for quite some time,” he said, “so whereas we have talked to a lot of partners there, we think it is a very competitive market and you need to have deep pockets before you go into Nigeria.”
According to Gachora, the bank is also looking for opportunities in the Democratic Republic of the Congo and is considering expanding into Ethiopia once it fully opens up its financial services to foreign investors. It would like to expand its mobile banking channels into new markets, such as Mshwari, which enables borrowing and savings via a mobile phone platform, and Fuliza, its overdraft lending product.
Kenyan lenders, such as Equity Group Holdings Plc and KCB Group Plc, are expanding their reach across the continent, where many people still lack adequate access to financial services.
According to Gachora, the bank is also looking for opportunities in the Democratic Republic of the Congo and is considering expanding into Ethiopia once it fully opens up its financial services to foreign investors. It would like to expand its mobile banking channels into new markets, such as Mshwari, which enables borrowing and savings via a mobile phone platform, and Fuliza, its overdraft lending product.
According to Bloomberg data, NCBA’s shares rose 1.6 percent to close at 25.50 shillings in Nairobi. In an emailed note, Nairobi-based Standard Investment Bank said, “The stock remains a prime candidate for an upward re-rating subject to a detailed valuation update.”
