The Central Bank of Kenya has greenlit Choice Bank’s transition from a community microfinance bank to a nationwide microfinance institution.
The CBK approved the bank’s application on 4th November 2024… “to convert from a community microfinance ank to a nationwide microfinance bank and therefore permitting the institution to carry out microfinance banking business throughout Kenya,” said Kamau Thugge, Governor, CBK.
Choice Bank’s innovative Banking-as-a-Service (BaaS) platform positions it as a leading force in Africa’s burgeoning BaaS revolution.
The BaaS platform empowers non-bank partners to seamlessly integrate financial services into their offerings. This enables them to reach underserved populations without the need for physical branches.
The bank handles all Know Your Customer (KYC) compliance, ensuring that accounts are insured by the Kenya Deposit Insurance Corporation and earn interest.
Choice Bank, founded in May 2015, initially operated as a community microfinance bank in Kajiado County, primarily serving Kenyans in the diaspora.
In 2021, the bank underwent a significant transformation when Wakanda Network Limited, a UK-based firm, acquired an 85% stake.
In 2023, Choice Microfinance reported a net profit of KSh 8 million, demonstrating its financial health. The bank’s customer base is substantial, with a total of 8,990 deposit accounts. However, it’s noteworthy that a significant portion of the deposits are relatively small, with only 19 accounts holding more than KSh 500,000.
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