Kenya’s biggest banks are entering a new phase, one where the challenge is no longer getting people onto digital platforms, but figuring out how to grow from customers who are already there.
At I&M Group, 98% of its customers now transact digitally, a figure that speaks to how far the entire banking sector has come. I&M’s numbers offer a reliable glimpse into the direction the industry is taking, with more than 727,000 customers across five markets and assets of about Ksh.668.9 billion.
For years, banks had a straightforward mission to move customers away from physical branches and onto mobile apps, USSD, and online platforms.
Today, the majority of everyday banking, sending money, paying bills, and checking balances happens digitally. Walk into a banking hall now, and it’s far quieter than it used to be.
Other major lenders such as KCB Group, Equity Group Holdings, and Co-operative Bank of Kenya all report that more than 90% of their transactions now take place outside physical branches.
In fact, Equity has previously indicated that over 95% of its transactions are handled through digital channels, while KCB has seen similar trends across its mobile and internet banking platforms.
But success has created a new challenge. Banks must now find ways to earn more from customers who are already fully digital.
Also Read: I&M bank Q 1 profit up 44.4% to Ksh.2.6 billion
While transaction volumes continue to rise, the money made from each transaction is shrinking. Increased competition and greater price transparency across mobile and online platforms mean customers are more sensitive to fees than ever before.
I&M’s latest financial results point to how banks are beginning to respond. The lender reported a 31% increase in non-interest income, reaching Ksh.14.4 billion, outpacing its overall revenue growth.
At the same time, its assets under management jumped sharply by 223% to Ksh.99 billion. This growth is largely tied to the bank offering more investment and wealth products to its existing customers, rather than relying on basic transactions.
The bank is also strengthening its foreign exchange services, expanding its FX Direct platform and enhancing online trading channels. These moves are aimed at capturing more value from customers who are already active on its digital platforms, particularly those involved in cross-border trade and currency transactions.
Across the industry, other banks are taking a similar path. Equity Group is expanding its investment and insurance offerings within its ecosystem, while KCB is pushing deeper into merchant payments and digital credit, especially after acquiring Riverbank Solutions. The pace may differ, but the direction is the same.
Banking apps are no longer just tools for sending money or checking balances. They are steadily becoming full financial marketplaces, where customers can borrow, save, invest, insure, and make payments all in one place.
What is emerging is a more competitive environment, where the focus is no longer on attracting new users, but on becoming the primary financial partner for existing ones.
