Business Daily
Date: 01.07.2016
Page 3
Article size: 515 cm2
ColumnCM: 114.44
AVE: 217444.44
Why M Oriental
Bank is dumping
ATMs and targeting
usinesses
trying times and should be allowed to
icing a client is the means to ensuring
enjoy the benefits of higher levels of
came the first Tanzanian lender
that we
to enter the Kenyan market after efficiency and client care
are rolling out.
it bought a 51 per cent stake in Kenya's
that our Service Standard Guarantees
BankM ofTanzanialast month be­
Oriental Commercial Bank. The deal has
Bank M Tanzania Pic sajid it will
Yousaidyouhavestopped
offering automaticteller
machine (ATM) serv­
ices in a strategic shift
that will see you target
henceforth target family busi­
wealthy family­run
since seen Oriental Comjmercial Bank
rebranded to M Oriental Bank and its
new Tanzanian majority shareholder
nesses in Kenya. To get ahjead
in the crowded banking mar­
ket that Kenya is, M Orien­
tal's new owners said they
intend to replicate a niche
business model that has spen
the group's Tanzanian unit suc­
ceed in banking high net worth in­
dividuals and family businesses. The
Business Daily caught up with M Hold­
ings Group chief executive officer San­
jeev Kumar for insights into what M
businesses. How
many clients does the
bank have and what happens
are met on a consistent basis and in line
with our client care philosophy. Inher­
ent in this promise is the potential for
a high cost operating business model,
which is quite acceptable to the bank, as
this will, in turn, lead to easy rendition
of client care unmatched by the rest of
the industry.
Such high standards of client care
should enable the bank to attract larger
volumes of business. It is this extra vol­
ume of business enthusiastically given
to us by happy and satisfied clients that
to those who have ATM cards?
We have 2,587 active clients, who will
has helped the bank to operate with
continue to enjoy the bank's services,
excluding the ATM services. ATM usage
by individual customers has historically
been very low—in single digits. We feel
that the existing savings bank custom­
one of the lowest Cost to Income Ratio
in Tanzania. We are confident that the
adoption of the same business model
and strategy in Kenya will help us to
achieve higher top­line, which should
ers would actually be shifting from im­
in turn lead us to one of the lowest Cost
personal ATM­serviced environment
to Income Ratio in the Kenya where op­
erating expenses look quite high.
to a highly personalised customer care
What willyoube offering fhelarge
business clientsyouhavesetas a tar­
Oriental Bank has in store for the Ken­
yan market. Here are the excerpts.
I
You have just rebranided and an­
nounced anewbusiness strategy for
business model we are confident our
customers will come to love.
M Oriental Bank. What will happen
to the bank's existing clients?
You have stated that you plan to tar­
get 6 00 clients with a minimum cli­
While we will focus on building relation­
ships with large business families under
entcoveragestandardofatleastone
client­facing staff member for eve­
our whole banking business strategy,
we plan to retain our relationships with
ry three clients, this automatically
means you willhave high operating
costs. How will you cope?
existing clients. These are clients who
have stood by the bank in difficult and
get market that is unique?
What makes us different is that we do
Having a basic minimum staff for serv­
everything possible to facilitate our cli­
ents to transact their business at a time
and place that is convenient to them
while expecting and receiving person­
alised services. Some of our very unique
products would be cash delivery/pick up
with risk transference at client premises,
non­cash documents delivery/pick­up,
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya
Business Daily
Date: 01.07.2016
Page 3
Article size: 515 cm2
ColumnCM: 114.44
AVE: 217444.44
remote cheque upload, an integrated
cash management product incorpo­
What does ittake to open an account
rating collections, payments, liquidity
atM Oriental Bank?
management, MIS features and super
We are positioning M Oriental as a
power­packed current accounts.
wholesale bank focused on large busi­
ness families. The client acquisition
process at M Oriental would follow a
holistic approach for entering into a
lasting business relationship with the
clients, who fit into the overall business
perspective of the bank.
The screening and due diligence
process on potential clients, even be­
fore approaching them with service of­
ferings, will be an essential ingredient
in the client acquisition process and
should help the bank to adopt an ag­
gressive marketing stance. The client
identification process will bebasedon
prospects' market reputation and stand­
ing, integrity and credit history as well
as quantum of banking business on of­
fer from the prospects.
The bank will select the clients fitting
into its business strategy for inclusion
on the Prospect List. Our experience in
Tanzania is that there is a sizable seg­
ment of clients in the market that is
willing to pay a premium for customised
products and services delivered within
pre­agreed timeline through innovative
delivery channels. M Oriental will offer
its services on a "Banking by Invitation
Only" basis.
What is the definition of alarge
client as per your target market?
The desired level of relationship trigger
will be a total business volume equiva­
lent of $2 million (Sh200 million) and
above from the family, either on asset
side or on liabilities side or the non­
funded business or combination of
all three.
[email protected]
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya
Business Daily
Date: 01.07.2016
Page 3
Article size: 515 cm2
ColumnCM: 114.44
AVE: 217444.44
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya