............ . . Widow's family rises from destitution
By George Kalisa
KCB is one of the fastest growing banks in the region with operations in Uganda, Kenya, Tanzania, Zanzibar, Rwanda and Southern Sudan. Having started in Zanzibar over 110 years ago, KCB plays a pivotal role in integrating regional business and finance by creating a seamless network of branches that will provide complete financial solutions to over 80 million people in East Africa. Arthur Baguma interviewed Nok Bwonditi the executive director of KCB, Uganda about the bank’s activities in Uganda.
Give a brief background of KCB Uganda
KCB-Uganda started operations in November 2007, following the opening of the KCB Kampala Road Branch. Our market entry was facilitated by the lifting of a moratorium by Bank of Uganda that had deferred the licensing of new banks, thus allowing KCB to open two branches, one on Kampala Road and another on Luwum Street. |
|
KCB-Uganda started operations in November 2007, following the opening of the KCB Kampala Road Branch. Our market entry was facilitated by the lifting of a moratorium by Bank of Uganda that had deferred the licensing of new banks, thus allowing KCB to open two branches, one on Kampala Road and another on Luwum Street. This was quickly followed by KCB Mbarara branch which set off a rapid expansion programme which is still on.
Today, we have 11 branches scattered across the country. Four are in Kampala and others are in Mbarara, Fort Portal, Hoima, Lira, Arua, Gulu and Elgon-Masaba (Mbale). We have not stopped expanding; four branches are at different stages of refurbishment; Kabale, Jinja, Industrial Area and Ndeeba. They are expected to be operational by the end of the year. We will close the year with 15 branches and 23 ATMs.
What have you achieved since you came to Uganda?
We have been able to present and reinforce the KCB brand in the market, as well as establish a robust branch network within the country in a short time.
Secondly, we have been able to ease the business problems of Ugandans with financial transactions between Uganda and Southern Sudan. KCB is the only bank operating in Southern Sudan since 2005.
We have also been able to ease financial transactions within the region. We have been able to recruit top notch professionals to manage the bank and also create employment opportunities for the Ugandans, on top of availing banking services to the people. We have about 270 East African staff, 96% of whom are Ugandans.
Why did you choose to penetrate the Ugandan market?
Uganda has become the business hub for landlocked countries such as Southern Sudan, Rwanda, eastern DRC, Burundi and northern Tanzania. This makes Uganda a critical link to these markets and an obvious choice for location for any serious business.
Our vision was to be the best bank in the region and to achieve this we needed to be in Uganda. Do not forget, Uganda has discovered huge oil reserves which have positioned the Ugandan economy differently.
In a short time you have positioned yourself as a leading bank. What is the secret?
There are two things we have relied on. We have short term competitive advantages like being the first and only bank in Southern Sudan. The other is that we have been able to be the only truly regional bank that allows a customer to transact on the same account, regardless of where they are. For example, if you are a customer of KCB operating an account at the Oasis Branch in Uganda, you will be able to be recognised in other countries. We have one network to serve our customers in the region.
The long term advantage we have is that KCB is a strong brand which has been in the region for over 100 years. We hope to capitalise on this by focusing on solid training of human resource that believes and lives the KCB brand values. Once you have excellent staff who give excellent customer service with the right attitude, no other competitor can duplicate that.
What are some of the unique services that you brought?
We offer a wide range of financial solutions. But we also offer specialised products such as cross-border funds transfers, popularly known as the KCB bizflex. This allows customers, particularly Ugandans doing business in Southern Sudan, to access their money in KCB branches in Uganda.
The other unique element with KCB is that we provide excellent service. We have extended working hours particularly Oasis branch, which opens 7 days a week from 8:00am to 7:00pm.
How do you rate the banking culture in Uganda?
The Uganda market is becoming increasingly competitive with a host of new licensed players. The potential for the market to grow is considerable, given that the number of people with bank accounts is still very small. The challenge is to get people to have trust and believe in the benefits of using financial institutions for transactions and to keep their money safely and continue to build a saving culture in the long term.
Briefly explain KCB’s corporate social responsibility (CSR)
KCB as an institution, believes in giving back to communities where it operates. The bank has specifically formed the KCB Foundation to manage its CSR agenda in the region. The foundation and its activities are funded by a portion of the bank’s profits. The activities focus on education, health, environment and entrepreneurship development. We have donated scholastic materials to schools and provided medical equipment to a number of health centres.
Concerning the environment, we pursue the KCB green agenda through planting trees and sensitisation on maintaining a clean environment.
In entrepreneurship development, we have been able to finance women groups in partnership with Techno-serve to the tune of sh36m. We basically teach them how to start and manage business. We are committed to CSR and we do it as a matter of principle. We focus on groups that make a difference to the whole community.
What is your geographical scope at the moment?
We are in Uganda, Kenya, Tanzania, Zanzibar, Rwanda, Southern Sudan and are soon to open in Bujumbura, making KCB the only truly East African bank.
Since 1997, KCB focused on expansion into the region. By 2002, we changed our vision to reflect this effort. Our vision was to be the best bank in the region and we had a big strategy to be part of the East African integration and creation of East African customers.
What are your key challenges of the banking sector?
They are three-fold. One is the challenge of skilled staff. We have staff shortages in terms of skills and numbers. And considering that within the last two years we have had eight new banks all looking at the same resources.
The second challenge is the infrastructure. In some areas, Information Communication Technology (ICTs) connectivity is a nightmare and the cost of doing business is extremely high.
Briefly tell us about the KCB portfolio across Africa
The KCB bigger family is an institution which is over 100 years old. It started in Zanzibar in 1895 and then moved across the region. In Tanzania, it was nationalised and became the National Bank of Commerce, while in Uganda it became the former Uganda Commercial Bank. In Kenya, it became Kenya Commercial Bank, which later changed its brand name to KCB. Our regional agenda was to revive the regional roots of the bank.
To date, KCB is represented in Uganda, Tanzania, Rwanda, Kenya, Zanzibar and Southern Sudan. From 2009, the KCB agenda changed and the vision changed from being regional to Pan African.
What are your future plans?
For the last two years, we focused on branch expansion and creating top of the mind awareness about the KCB brand.
From 2010, we will focus on driving customers into our branches through the development of new and exciting products. KCB is a strong brand in the region and has consistently, since 1997, spearheaded the integration of the East African Community. It recognises all its customers as being “East African Customers.”
|
