Faulu Bank receives over Ksh 900M from Old Mutual to boost digital & SME banking
Faulu Microfinance Bank has received over Ksh 900 million from its parent company, Old Mutual. The investment is aimed at strengthening its operations and reposition its business on digital banking.
Established over 30 years ago, Faulu has grown into one of Kenya’s most recognizable financial services brands. As part of the Old Mutual East Africa Holdings Group, the Bank has initiated a business refocus to meet the increasing customer demand for digital services, reduce costs, and enhance competitiveness.
The investment coincides with Faulu’s efforts to expand its digital banking services and realign its distribution channels and human resources for sustainable growth. This initiative is part of the Bank’s strategy to enhance its performance and establish itself as a leading traders’ bank and digital finance provider.
The Bank has strategically decided to review its distribution channels to align with its new operating business model, supported by an active agency network of over 70. Additionally, the microfinance bank plans to expand its SME support services and implement an enhanced distribution network.
Commenting on the investment, Faulu Microfinance Bank CEO Julius Ouma commented, “Over the last 18 months, we have made significant investments in enhancing our digital capabilities. We are eager to become a leader in the digital finance space. Many of the services that the bank offers are now available online, and our intention is to make our services more accessible for our customers. We will also be leveraging the support of our Holding company, Old Mutual, who have committed over Ksh 900 million towards these operating model enhancements, to reposition Faulu as the digital bank of now!”
On his part, Old Mutual Holdings CEO Arthur Oginga added, “With this change, we are both enhancing the Faulu service offering to our existing and future customer network, as well as positioning the business to deliver more value sustainably. Faulu has the full backing of Old Mutual in these endeavours, and we are confident that the refocus will drive shared value for all our stakeholders.”
