Armonk, N.Y.-based IBM announced it has entered into five strategic agreements in the Kenyan financial services sector designed to help African banks turn to advanced technologies to support rapid growth, increase profitability and launch new services such as mobile and online banking.
IBM has signed contracts with Credit Bank, Co-operative Bank, Family Bank, National Bank of Kenya and National Industrial Credit Bank. The agreements are part of more than 20 similar deals that IBM has signed with banks across Africa in 2011. IBM is also working with Africa's leading telecom providers to help provide mobile phone-based money transfer services. For example, through its partnership with Vodafone, IBM is helping Safaricom provide its M-PESA mobile money services to over 15 million customers in East Africa.
The deals with Co-operative Bank of Kenya and National Bank of Kenya will help support their expansion strategies and increase profitability, said IBM. IBM supplied Co-Operative Bank with Power Systems servers as well as storage and software as part of a major overhaul of the bank's systems. In its agreement with the National Bank of Kenya, IBM is providing IT services, hardware and software as the bank updates its business.
Family Bank and IBM signed an agreement to support the bank's drive to reach new markets and launch new products and services. The bank's regional expansion plan, alongside its introduction of new services such as mobile banking and mortgage facilities, has led the firm to transform its IT systems ahead of a planned listing on the Nairobi Stock Exchange in 2012.
Credit Bank's deal with IBM is for a new core banking system. Under the terms of the agreement, IBM will provide hardware, software, and consultancy and services for the implementation, as well as integration and maintenance of the new system.
National Industrial Credit Bank also selected IBM technologies to help streamline the bank's core banking processes and integrate its existing IT solutions to drive operational efficiencies and improve customer service.
Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio