Equity’s Fintech innovation and digitization have powered rapid growth of Diaspora banking boosting the total revenue income by 38%.
Diaspora transaction volumes grew by 196% to Kshs 107 Billion while the commissions recorded a 169% rise from Kshs 279 million in 2017 to 751 million after the same period last year. The results came in the backdrop of a unique business model and strategy that creates resilience while managing headwinds of interest rate capping and challenging macroeconomic and business environment.
Speaking during the release of the 2018 full year results, Equity Group CEO & MD Dr. James Mwangi noted that, remittances have taken a significant market share moving from Kshs36Billion to Kshs 107Billion and hopefully this year surpassing Kshs 200Billion in diaspora remittances processing simply because of Fintech capabilities. A model that differentiates Equity Bank’s from others in the market, as it delivers unmatched convenience and ease.
Equity continues to invest in solutions through innovations and strategic partnerships with global money remittance outlets targeting Kenyans living and working abroad. The Diaspora business segment offers a wide range of services tailored to suit the banking needs for money transfers, payments, and investments.
According to CBK data, total cash inflows from foreign countries increased by 39 percent to Sh274.37 billion in relation to Sh198.07 billion in 2017. June recorded the highest diaspora remittances with US leading followed by Europe and the rest of the world inflow earnings.
In 2018, Equity Group profits grew to Kshs.28.5 billion; a profit growth of 6% and a 13% growth in customer deposit. The customer base grew to 13.5 million clients and customer deposits grew at 13% to reach Kshs.422.8 billion up from Kshs.373.1 billion driving the growth of the balance sheet to reach Kshs.573.4 billion up from Kshs.524.5 billion the previous year.