Considering banking as your career of choice in Kenya? Read On:

So you already earned a college degree and are seriously considering Banking as your career of choice? In this blog, I will try and shed light on the possible career path and development in the banking Industry.

Banking is a critical player in all facets of an economy, and demands the highest possible levels of personal integrity, ethics and honesty. Banks are also actively involved in CSR programs at all levels, but mainly Education, Health, Water and Sanitation.

Banking industry prospects are strongly correlated to the ups and downs of the economic cycles. Everyone needs a bank account and a casual observation shows that bank profits in Kenya and the region have been increasing over the past 5 years, with most Kenyan banks expanding their operations across the region. The Industry is also seeing a flood of new technology driven products and services.

The banking width and depth in Kenya is comprised of over 40 banks-7 international banks, 5 midsized progressive local banks, 3 large and several parastatal banks and other small sized banks.

The banking career specializations will include: operations, business/relationship management, Sales, Credit, treasury, Trade finance, Customer services and product specialists. There are other specialist/professional fields including Information Technology, Audit & Finance, Legal services, Marketing, Risk and Compliance.

Career growth will mainly start either as management trainees, or as Bank clerks, with performance based long term growth oriented and reward opportunities. (Fast tracked cowboys will rarely last beyond 2 years). Placement is dependent on ones competencies with post deployment training in various fields. Expect also a lot of vertical as well as lateral (cross functional) movement and rotations.

Remuneration levels will depend from bank to bank but generally in the range of Ksh. 30,000-Kshs 50,000 per month starting salary as a clerk/trainee. Additional incentives will include concessional loans at as low as 4% p.a. interest rates, housing, medical, education among others. Banks will recruit at graduate levels. MBAs and other relevant professional courses are distinct advantages.

If you want to make a career in banking it is advisable to simultaneously also start a professional banking qualification e.g. AKIB or ACIB.

What will your bank look out for before processing your loan?

So you are now seriously considering to approach your bank for a much needed boost to buy stocks, purchase a business asset, working capital or just to expand your business? What will your banker look for in considering your loan request?

Banks trade with their customer’s deposits mainly by way of lending these deposits to needy sectors of the economy at agreed interest rates, which can be seen as the Expected rate of return. Between the rate they give on customer deposits and the rate they charge on borrowers is a margin, which can be literally referred to as the profit for the Bank.

Many people mistakenly think that for one to qualify for a bank loan, they need collateral/security, while others think it depends on the amount of deposits/savings in their bank account.

While these factors definitely have an influence albeit little, banks in analyzing your suitability for a loan will look out for the following major attributes:

• Character-There are many people who will borrow money with the express intention of never repaying back. Are you one of them?
• Ability to repay both loan and interest-Even without the loan, can you comfortably meet the repayment obligation?
• Experiences in business-Businesses normally go through cycles, ups and downs and an understanding of these seasons is important.
• Cash flows-whether the business can generate sufficient funds to cater for both its daily operations and also cater for the loan installments. This is determined by account turnovers, stock turnovers, etc
• Repayment/Banking/Credit History-Have you been honoring your obligations in the past and on time? Here even normal bills like electricity, water, rent are critical.
• Security-This is important to be colloquial to cushion you ‘when shit happens’ as it does happen once in a while. The locations, value, are important.
• Amount-Too little or too much?

For the personal loans category, the major requirement would be evidence of salary, terms of employment and for most prudent lenders adherence to the 2/3 rule.

I hope this enlightens you as a borrower or potential borrower on what banks will generally look for before advancing you that much needed loan to boost your business.

Please note that this is just a general guide, as different banks will have different requirements, mainly revolving around these guidelines. It is important to discuss with your bank on the specific requirements before committing yourself.

Barclays Bank of Kenya Offers Free ATM withdrawals, Free Internet & Mobile phone Banking

The recent move by Barclays Bank of Kenya to scrap its transaction charges for it’s ATM withdrawals and balance enquiries at its 236 machines as well as internet transactions and those happening through the mobile phone is an indeed welcome move for the banking Kenyans.

Besides making it the first bank in the Kenyan market to offer these services for free, it will definitely change the landscape especially in the retail banking sub-sector.

This will make it the first bank in Kenya to offer ATM withdrawals for free without having a fixed monthly charge.

“This new offers are in line with our strategy to enhance customer service, support branch expansion and improve management of customer complaints and resolution,” said by Adan Mohamed (Barclays Bank Managing Director East and West Africa)

It will probably see a major increase in its retail customers as this move will obviously appeal to the majority of salaried clients across the country who use the ATMs to access their salaries, and the alerts through mobile phones.

A major benefit for the Bank is of course an increase in customer numbers, and availability of cheap, stable deposits from these segments, which they can on lend to the personal loans category.  Coupled with their good branch network and an impressive asset base, this is a winning strategy for BBK.  No wonder they have revamped their Personal loans lately.

Count me on as a BBK client soon. Food for thought for other banks to borrow the cue!

A review of Kenya Banking environment and what to look for

Hi, my name is Paul, a Kenyan with over 10 years of hands on experience in the Kenyan financial services sector. Specifically, I have been actively involved in financial Sales, Marketing & mobilization, Business Relationships Management and Credit Administration besides general banking operations. I have also been involved in consultancy projects for various microfinance institutions.

I also have a keen interest in online business opportunities. Banking plays a critical role in the socio-economic development of a nation, and much as I believe that everyone at one point or the other will seek banking services either as individuals or as business entities, banks have traditionally been very economical with information. We need to change this and lay bare all facts that relate to the banking operations.

This I believe can only be achieved when knowledge is shared, by creating a knowledge based economy. We thus empower our readers with the relevant knowledge and appropriate information for wealth generation and creation. We reckon that all human beings are equally endowed with an unlimited, infinite asset-The Human Mind, which then puts us all on an equal pedestal. How far we succeed in life is therefore a matter of individual effort and determination, and how we utilize this gift.

This blog will therefore endeavor to afford our readers an opportunity to get appropriate and relevant information in order to make informed, wise and value adding banking decisions. Besides, I hope it will offer readers an interactive platform not only to share but also learn from each other.

A good starting is to seek to understand what informs peoples banking preferences. The following are just but the key considerations:
• Affordability
• Convenience
• Stability
• Customer service