Home
East Africa
Enterprise
Boss Talk

Personal details
Change password
Purchases
Sign out

Home
News
Business
Opinion
Science & Health
Magazine
- Commodities
- Market News
Sports
- Commodities
- Market News
Rest of Africa
- Commodities
- Market News
Kusi Ideas
- Commodities
- Market News
Podcasts
Videos
Sponsored

KBA boss Habil Olaka on investments banks are making as branch activities decline

Friday, March 08, 2024 — updated on September 02, 2025 - 4 min read

Habil Olaka, Kenya Bankers Association chief executive officer. Illustration | Joseph Barasa | Nation Media Group

By Patrick Alushula

Business Reporter

Nation Media Group

Thank you for reading businessdailyafrica.com

The banking sector is experiencing increased digital adoption that has cut customer preference for physical branches to about 16.5 percent.

The Business Daily spoke to Kenya Bankers Association (KBA) chief executive Habil Olaka on investments banks are making to suit customer expectations, the emerging risks from this wave and the skill sets the sector requires for it.

Since 2018, KBA has been conducting the banking industry customer satisfaction survey. Why does it matter?

Related

Capital Markets

Banks cautious on loans repricing in New Year as high rates fuel defaults

Dec 29, 2023 - 5 min read
Market News

Banks draw Sh32bn CBK emergency loans in two months

Mar 06, 2024 - 4 min read

As KBA, we are at a vantage position in terms of getting general feedback from the banking public. The feedback positions us in a way that we want to ensure banks are responding to customer concerns and that their experience is improving.

Read: Banks raise spending on tech for customer service, fraud fight

To what extent does this survey influence investment decisions in the sector?

In a big way. For example, feedback from previous surveys makes banks take note of significant areas of concern for customers and then develop a road map to address those concerns.

For example, people living with disabilities is a segment of banking community that can easily be neglected. It requires us to get direct feedback from such people to start seeing things from their perspective so that as we innovate.

What size of budgets are banks dedicate to technology?

Banks are in a fierce completive environment and so each is trying to keep itself ahead of others. Being competitive means customers going to them rather than to competition. The only way is by making their services pleasurable, accessible and convenient to consumers.

We are seeing more investment in technology but not just for customer experience but also for security against increasing cyber risks.

Technology is one of the biggest investments by banks now.

In terms of skills set, what is becoming more attractive?

In terms of skills investment, there is the function of compliance which is becoming a fairly critical one. This is compliance in all perspectives, for example, in terms of data protection in line with the law.

The challenges of money laundering, terrorism financing and proliferation financing are increasing and that means additional skills to address these risks.

Read: Co-op, NCBA, Family Bank top customer experience poll

The KBA survey shows customer preference for branches at 16.5 percent but banks continue to open new physical outlets. Is it a contradiction?

It may look like a contradiction, but at the end of the day, even as we go deep into technology, that human experience with customers is not going to end. Many customers still want to walk into banks and talk to human beings about their experiences.

Many have accounts in different banks. What is driving this and are there any concerns that this could promote the hiding of large and suspicious transactions?

Different banks have got different strengths and customer needs vary depending on which product they want.

The ability to use multiple banks to split transactions and hide from the law is fairly limited because at the end of the day transactions have to originate from a particular bank and it will still be flagged. So, it is so remote.

Several firms are testing AI in customer experience. What can customers expect from banks?

AI is still evolving and various sectors including banking are still trying to see how to leverage on it to facilitate customer service delivery. We are still in the discovery phase before we can start applying. It is a learning process.

One other thing linked to customer satisfaction is the transparency in pricing of loans. The cost of credit website seems not to be up to date. Is it an abandoned resource?

No. Actually it is working. The only thing is that it is a collaborative effort between ourselves and the Central Bank of Kenya. From our end, we ensure banks post current information. All that customers are asked to do is to visit the portal but then vote with their feet if the rates displayed aren’t what they are actually offered.

→ [email protected]

Get it First!

Get Breaking News Delivered to your Inbox.

Conflict

Companies

Telkom billions trail fades on multi-country barriers

Sep 19, 2024 - 5 min read
Columnists

Inside the investors’ safety nets in Kenya’s new privatisation plan

Mar 18, 2024 - 3 min read
Companies

Cytonn fails to secure more time for funds compliance

Mar 18, 2024 - 4 min read
Columnists

Essentials for sustained economic growth in Kenya

Mar 18, 2024 - 4 min read

Latest

Meta

Frequently Asked Questions

Sep 25, 2024 - 4 min read
Meta

Cookie Policy

Sep 24, 2024 - 5 min read
Meta

Terms and Conditions

Sep 24, 2024 - 15 min read
Companies

Telkom billions trail fades on multi-country barriers

Sep 19, 2024 - 5 min read

In the headlines

Companies

US think-tank taps Kenya's outgoing UN envoy

Mar 19, 2024 - 3 min read
Meta

Frequently Asked Questions

Sep 25, 2024 - 4 min read
Meta

Cookie Policy

Sep 24, 2024 - 5 min read
Meta

Terms and Conditions

Sep 24, 2024 - 15 min read

Oops

We're sorry, we couldn't load the article

If you have an Ad-blocker please disable it and reload the page or try again later.

Follow us

Apps

Support

Contact Us
Frequently Asked Questions

Tools

This Week's ePaper
News Feed
Events

Legal & Privacy

Terms and Conditions
Privacy Policy
Cookie Policy
Our Blog Rules

Nation Africa
The Citizen
Nairobi News
Mwananchi
NTV Kenya
Mwanaspoti
NTV Uganda
Business Daily
Daily Monitor
Nation Media Group

Nation Media Group © 2026