Oral East AfricaFor forty years, Family Bank has grown from a building society with one branch into one of Kenya’s most trusted financial partners with 95 branches across 32 counties moving from town to town.
Since its inception, the Bank has played a pivotal role as a leader in the sector by providing access to capital to individuals, businesses, and communities across the country.
Established as a building society in 1984, Family Bank opened its doors with a vision to empower underserved communities with access to financial services.
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As the Bank celebrated its 40 years anniversary, Jane Njeri Kagombo, one of their very first customers in Nakuru, reminisced how the bank used to grow.
She said the Bank’s founder Titus Kiondo Muya, popularly known as TK approached the her and fellow traders and arranged a physical meeting to convince them to bank with the homegrown lender.
“Wakati mwanzilishi alikuja nakuru alitupata tukamkaribisha. Ikawa anahitaji kuwa na mkutano na wau wa nakuru, nasi tulikua na marafiki wetu tunajuana, tunaweza kuwaita,” Ms Kagombo said.
“Wakati alikua akifiiria atafanya nini, tulimpea Hall, gorofa ya sita, ana wakakutana na wale marafiki zetu na wakaweza kufungua bank ya family hapa Nakuru,” she said.
SME strategy
The bet paid off, this strategy served as the cornerstone of the bank’s growth that has brought Family Bank a reach of cover 1.7 million customers with a total asset base of KES 158.3 billion and a deposit base of KES 119 billion as of 30 June 2024.
Today, Family Bank stands as a key player in Kenya’s financial services sector, offering innovative banking solutions that enable economic progress, especially for MSMEs which represent 80 per cent of its customer base.
But since then the world has transformed in ways, no one could have anticipated, with technology overturning what is possible in terms of expanding across geographies and youthful demographics of the future.
AI and the future
During the celebration of Family Bank’s forty-year legacy, the bank took the opportunity to show that they have always been bold in facing the future through innovation, and would draw those lessons to stay ahead and keep growing.
Family Bank said as part of its commitment to technology-driven solutions over the years, it pioneered digital banking in Kenya by introducing smart card technology, launching mVisa across Africa, and innovating the mobile banking app, PesaPap, which processes over 90 per cent of the Bank’s transactions. These solutions have revolutionized customer experiences by making banking more accessible and convenient.
From providing accessible loans to smallholder farmers, Micro, Small and Medium Enterprises (MSMES) and individuals to pioneering mobile banking services, Family Bank has continually evolved to meet the needs of its clients.
The lender says it looks forward into the challenges of the future and the boundless opportunity provided by Artificial Intelligence and machine learning.
“As we look to the next 40 years, there are no limits to innovation. The future is shaped by AI, big data, digital transformation, ESG values, ecosystem banking, innovation, and strategic partnerships. At Family Bank, these are our core priorities, and our goal is to evolve into a one-stop financial hub for our customers,” said Family Bank Chairman Lazarus Muema.
Family leadership
Family Bank also used the celebration to show stakeholders, its evolution towards this new world guided by experienced hands and youthful management cultivated in the culture and vision of the institution.
The lender recently picked Mr Muema, a non-executive director, to head the Board as the chairman. He has served the Family Bank Board as a Non-Executive Director since 2017. The seasoned player in the industry with over 30 years of financial experience and over 15 years in insurance and pensions gives the lender steady hands with long-term view and a well-leveraged rolodex.
Family Bank also demonstrated its long legacy of past leadership, at hand to offer guidance. In attendance during the gala dinner event was also the Former Family Bank Chairman Dr. Wilfred Kiboro, Family Bank Board Directors, Executive Committee, staff and The Family Group Foundation Board Directors.
This experience with the youthful management of Family Bank Chief Executive Officer Nancy Njau who has risen through the ranks from management trainee to lead the institution.
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