I&M Bank is a leading player in the Kenyan financial services market and has been consistently expanding and innovating its array of products and services to meet the needs of the dynamic consumer. We cash in on the company’s exciting ambitions and plans for financial inclusion with its Executive General Manager for Personal and Business Banking, Shameer Patel.
DRIVING FINANCIAL INCLUSION
There has arguably never been a more fascinating time to work in the African finance industry than now.
Within this expansive sector, the continuous rise of niche FinTech companies has necessitated an increased need for cooperation and strategic partnerships with governments, banking institutions, and other key players in order to meet the rising financial demands of the continent’s myriad communities.
Elsewhere, the unprecedented increase in youth populations across the region has grown the opportunity for new methods of enhancing financial inclusion, whilst the rising adoption of mobile and internet technologies has also become a key enabler for economic growth, inspiring many African companies to innovate solutions that leverage these new platforms.
This enhanced digital footprint has helped the likes of I&M Bank to personalise their financial products and service solutions to customers.
Established in 1974 as a small finance house, this year marks the 50th anniversary of I&M Bank, a Tier 1 Kenyan bank and wholly owned subsidiary of I&M Group PLC, a public company listed on the Nairobi Securities Exchange (NSE).
I&M Group PLC offers a full range of banking and financial services covering corporate, business, and personal banking, wealth management, bancassurance, and advisory services with a presence spanning across five countries in Kenya, Uganda, Tanzania, Rwanda, and Mauritius through a joint venture with CIEL Group (Bank One).
“We have a long-standing presence in Kenya’s banking industry, with a staff complement of nearly 1,700 and now leveraging 53 branches across the country,” says Executive General Manager for Personal and Business Banking, Shameer Patel.
A GOLDEN LEGACY
I&M Bank’s market-ready products are highly relevant to Kenyans, whilst customer centricity is at the core of the company’s business decisions.
“Having grown from a small family business, the ethos of our Founder and Chairman, Emeritus S.B.R. Shah, ‘empathy for the customer’, has prevailed. Many of our customers have banked on us from inception, and we have witnessed great loyalty and goodwill from the communities we serve over the years,” Shameer explains.
This impressive reputation has earned the company many accolades, such as the ‘Most Customer Centric Bank’ award at the 2024 Think Business Banking Awards, as well as a first place ranking in the Kenyan Banking Consumer Sentiment on Social Media Index, a nationwide rating of banking sector players.
Additionally, the company’s Net Promoter Score (NPS) and Customer Satisfaction Score (CSS), which currently stand at an impressive 75 and 95 percent, respectively, position I&M Bank comfortably above industry standards.
I&M Bank recognises that digitisation is key to meeting the challenges of modern banking and has undergone a digital transformation that has embraced ecosystem partnerships, omnichannel distribution, and use of artificial intelligence (AI) solutions for lending decisions, which offer greater flexibility and efficiency in managing its digital business.
This shift has significantly reduced I&M’s reliance on legacy systems as the bank continuously aims for more secure, efficient, and cost-effective processes. Some of the enhancements include the ability to fully onboard customers digitally, which has reduced time to onboard from 24 hours to circa five minutes and lowered the cost to acquire by 44 percent and serve by 72 percent.
WHAT WAS YOUR FIRST INTRODUCTION TO THE WORLD OF FINANCE?
Shameer Patel, Executive General Manager for Personal and Business Banking: “A career in banking was never on the cards for me, as I chose instead to pursue studies in economics and geography with a view to focus on geology, until one day I thought about the opportunities that were available at the time if I went down that path.
“After graduating, I joined a small local bank as a Junior Officer before joining I&M Bank, then known as Investments & Mortgages Bank, as a Management Trainee. The rotational programme saw me serve in different functions, eventually rising to branch leadership and Corporate Relationships Manager.
“I ended up in the CEO’s office, followed by setting up the Strategy and Transformation function, including the digital factory during a period of significant transformation to a retail universal bank, before moving on to lead the consolidated Personal and Business Banking segment. It is now nearly 25 years since I joined I&M Bank.”
NEW RETAIL STRATEGY
I&M’s new transformative retail strategy, driven by the optimisation of its distribution network and digital solutions, is focused on scaling phygital experiences through face-to-face distribution infrastructure and leveraging digital and strategic partnership initiatives to deepen financial inclusion in Kenya.
“This year alone, we have opened 12 new branches across Kenya, with several more planned for Q4 2024, and we aim to reach 100 by the end of 2026. In line with its innovative philosophy, the bank is also opening branches constructed from end-of-life containers which are fully solar powered and thus self-sustaining,” added Shameer.
This branch expansion programme is key to the bank’s drive to scale up its retail business. Already extremely strong in the corporate and commercial segments, I&M Bank now wants to become more relevant in in the retail segment with a special focus on individuals and small businesses.
“Our aim is to get to one million customers by 2026, and digitisation is critical to achieving this objective. We have invested 28 percent of our capital expenditure into this and have seen significant growth in the adoption of our digital services, with 82 percent of customers now digitally active and an average of three million mobile online banking transactions per month.
“We continue to launch innovative digital solutions such as free bank-to-mobile wallet (M-PESA and Airtel Money) transfers for individuals and small business owners, as well as more traditional banking products including the largest unsecured personal loan in the market, with both initiatives being the first by any bank in Kenya. These, coupled with other elements, have led to the bank scaling its new customer base with tenfold growth in new customers per month compared to a year back,” he adds.
A COMMITMENT TO CHANGE
I&M Bank passionately believes the prosperity of business and society are inextricably linked and that investing in social initiatives generates a positive multiplier effect.
It therefore established the I&M Foundation in 2020 to deliver the shared value agenda and sets aside two percent of its profit before tax every year towards the foundation – the only bank in the country to do so.
“The four pillars of the I&M Foundation are Environmental Conservation, Education and Skills Development, Economic Empowerment, and Enabling Giving. The foundation’s approach is to work with partners to deliver its objectives by seeking to leverage and complement resources, skills, experiences, and knowledge, and the track the implementation of partner organisations in a catalytic and value-adding manner,” Shameer expounds.
This year, I&M Bank also embarked on a flagship sustainability project that underscores its commitment to Principles 7 and 8 of the UN Global Compact to support the national climate action agenda through a public-private partnership with the Kenya Forest Service (KFS) to rehabilitate and develop infrastructure at the Ngong Road Forest Station in Nairobi.
The scope of this extensive project, which seeks to give the residents of Nairobi County an alternative recreation area away from Karura Forest, includes the production of seedlings, rehabilitation of degraded forest areas, and fencing of the sanctuary section of Ngong Road Forest.
The project will be fully funded by the I&M Foundation and undertaken in three phases over three years, after which the foundation will be seeking partners to help scale the project.
TODAY’S PROMISES, TOMORROW’S AMBITIONS
The future is undoubtedly full of exciting plans for I&M Bank. Striving to conquer its ambitious goals, the bank embraces both organic and inorganic growth strategies which have led to some iconic mergers and acquisitions.
“Our long-term ambition is to become Eastern Africa’s leading financial partner for growth and our three-year objectives include impacting 10 million lives by 2026. Our strategy is anchored in a sustainability agenda, where we are incorporating responsible practices at all levels of operation and business,” Shameer concludes.
I&M BANK BROCHURE
