News

Kenya's largest bank downsizes ATM fleet

August 4, 2017

Equity Bank, Kenya's largest bank in terms of customer numbers, is downsizing its ATM fleet as customer migrate to other channels, such as agency and mobile banking. The move is part of a cost-cutting effort in response to government-imposed rate caps, according to a report by Business Daily Africa.

Equity has the largest ATM network in Kenya, with ownership of 20 percent (520) of the nation's 2,656 machines as of December 2016.

To date, the bank has shut down 11 ATM lobbies, each of which housed several cash machines, the report said.

While the ATM lobbies and machines require capital investment and incur leased space and maintenance costs, "agency and mobile banking have no such capital commitments," the report said.

Equity Chief Executive James Mwangi said that a survey of customers last year revealed that customers prefer self-service digital banking and convenient access to loans and payment platforms.