Kenya's I&M Bank has achieved a significant milestone in its digital transformation, with a staggering 98% of its customers now conducting transactions digitally. This remarkable figure is a testament to the bank's efforts in shifting its focus from acquiring new digital users to extracting more revenue from its existing customer base. The bank serves over 727,000 customers across five markets, with assets worth KES 668.9 billion ($5.2 billion), making it one of Kenya's top-tier lenders.

The banking industry's shift towards digital channels has been a major success story, with most tier-one lenders reporting that over 90% of transactions now take place outside physical branches. I&M's achievement is notable, as it is one of the few lenders to publish figures as high as 98% digital usage. This trend is not unique to I&M, with other lenders such as Equity Group and KCB Group also reporting high levels of digital adoption.

The next challenge for banks like I&M is to find ways to increase revenue from existing customers, as transaction volumes may continue to rise but earnings per transaction decline due to increased competition and transparency in mobile and online channels. I&M's latest results suggest that the lender is making progress in this area, with its non-interest income rising by 31% to KES 14.4 billion ($111 million) and assets under management surging 223% to KES 99 billion ($764 million).

💡 NaijaBuzz Take

I&M Bank's achievement is a significant milestone in Kenya's digital banking revolution, but it also presents a new challenge for the lender: how to increase revenue from existing customers. This is a problem that Nigerian banks, including GTBank and FirstBank, will also need to address as they continue to shift towards digital channels. The success of I&M's strategy will be closely watched by the industry, and it will be interesting to see how other lenders respond to this challenge.