MY STORY Way back in the 1960s when I was a young man in High School I read somewhere that, and I quote “even the big institutions including multi-national banks that you see in the world today were started by individuals. They all started small and grew to become big international institutions. End of quote. There and then I said to myself that one day I would start a bank and build it to be a big institution. As I finished High School and started working initially as a Junior Clerk and later on in the middle cadre of the civil service the thought of starting a bank kept on coming to my mind again and again and again. By the early 1980s the idea had fully crystallized and l found myself visiting the treasury looking for a license to start a bank.
The first officers I met at the Treasury were very surprised that I could even dream of starting a bank. First, I did not have the requisite capital. Secondly, I did not have the necessary banking experience having come form the civil service and thirdly, I did not even come from the then rich well known families of the time. At the outset I must say that these objections were both genuine and legitimate. However, I insisted that while I did not have the money, I had a vision for the bank I wanted to start. Even after visiting the treasury continuously for three years, I did not get a license to start a bank. Eventually, the officers advised me to apply for a building society license. As we argued somebody stated that and I quote “You could end up doing with a building society what you wanted to do with a bank.” Today when I look back those were philosophical words indeed.
I badly wanted to start a bank but with this advice I reluctantly applied and in 1984 got a license to operate a building society by the name Family Finance Building Society. Immediately on getting the license I resigned my government job, looked for an office in Nairobi and appointed myself the CEO and the 1st employee of Family Finance Building Society. Later on as the bank grew it needed a Chairman and since there was nobody more senior than me I appointed myself the Chairman. Consequently, I was both Chairman and CEO of Family Finance Building Society for over 23years. On 30th June,2006, I resigned from being the CEO and became non Executive Chairman in compliance with CBK corporate.
GOVERNANCE REQUIREMENTS On 1st May,2007 Family Finance converted from a Building Society to a fully fledged commercial bank under the name FAMILY BANK LTD. The road to conversion was a challenging one and I thank the teams that worked tirelessly through sleepless nights to make the process a success. I also thank both the Central Bank of Kenya and the Ministry of Finance for their guidance in this matter.
We have grown over the years. We have over 600,000 customers, an asset base in excess of Ksh.11 billion, a deposit base of Kshs.8.5 billion, a loan book of Kshs.6.6 billion and are capitalized at Ksh. 1.6. billion. We have a network of 50 branches countrywide located in seven out of eight provinces of this republic. Our staff compliment is close to 1,000 employees and as earlier indicated we have a board of six members. Family Bank is an equal opportunity employer and our core values are Respect, Integrity, Professionalism and Passion for Excellency.
In the Banking survey held early this year Family Bank was rated as one of the fastest growing Banks in Kenya. We were rated as the Best Bank in Tier 2, Second runners – up in the Micro-Finance sector. We were also ranked 5th overall bank in customer numbers out of a total of 46 banks countrywide.
HOW ABOUT PRODUCT SEGMENTS? Right from the beginning, Family Bank wanted to serve and today continues to serve the lower end of the market. Family Bank’s target market is the economically active both banked and un-banked population in the rural and urban areas of this country. The key sectors are;
The small scale commercial farmers. These include the tea farmers, coffee farmers, dairy farmers, pyrethrum farmers, grain farmers, includes tea, coffee, maize, wheat and barley, flowers, fisheries etc.
It includes salaried workers from both private and public sectors.
It includes small, medium and large entrepreneurs both in informal and formal business enterprises. We have suitable products for all small scale enterprises or what is commonly known as Micro Enterprises.
We provide them a wide range of financial products and services which includes savings accounts, trade finance, foreign currency dealings, credit products, money transfer as well as e-products like SMS banking among others at vey competitive rates. We have simplified account and easy loan application procedures. We offer fast, flexible, friendly and efficient services all in line with our mission, of positively transforming people’s lives through faster, friendlier banking. While on products, H.E. has already unveiled a new product the Mwananchi Account. This account is easy to open. It is accessible to all classes of people and has no ledger fees.
ICT PLATFORM AND ATM NETWORK Our ICT platform is fairly advanced. Our branches are inter-connected via Wide Area Network connectivity, where transactions are effected online on a real time basis. Our operations are fully automated using Smart Banking Computer Technology. Indeed Family Bank was the first bank in Kenya to introduce paperless banking through Smart Card Technology that enables customers to withdraw or deposit money without having to fill in deposit or withdrawal slips. This confirms that Family Bank cares for the environment. The bank has rolled out a total of over 85 ATMs across the branch network. Further due to our partnership with Kenswitch our customers and other Kenswitch banks member customers are able to access an ATM service of over 200 ATMs located all over the country
PARTNERSHIP WITH OTHER ORGANISATIONS As you are aware Family Bank is a financial intermediary for both the Youth and women funds. We work closely with the relevant Ministries in this connection. We are also working closely with the Ministries of Finance and Local Government in regard to CDF and LATF funds respectively. At the international level we are working closely with both the PTA Bank and C-Gap amongst others. Through these partnerships, Funds have been raised and loans in excess of Kshs. 2 billion given to the target beneficiaries. Further some 22,090 youth and well over 9000 women have been trained on business entrepreneurship.
CORPORATE SOCIAL RESPONSIBILITY (CSR) Family Bank as a corporate citizen works closely with the communities where we have branches.
First we have a Talent Development Programme. In this programme we target the two best students in KCSE from each of Kenyas 8 provinces every year. We offer them employment as they wait to go to University. Thereafter we follow their progress in the University. We also contribute to the jigger eradication campaign run by Ahadi Kenya Trust. We have contributed funds towards fumigating 370 homesteads and over 20 schools in Gitugi Location, Muranga District. Further we have given donations to those affected and infected by HIV/Aids through the Leadership of Nairobi City Council. Further in addition to making donations to various Charity and Children’s homes we are also the official sponsors of The Eldoret Marathon.
THE WAY FORWARD
First Family Bank is already installing one of the worlds leading core banking software flexcube acquired from Oracle Financial Services Ltd to replace the current software. This has been necessitated by the current business growth but also to allow for more functionality especially the forth coming E-Products. Further, while our partnership with Kenswitch will continue, we intended to acquire our own switch to facilitate faster delivery of new products and avoid over reliance on Kenswitch.
Our plans to list at the NSE were put on hold last year but plans are still underway to list at the appropriate time. As regards the Regional front Family Bank will keep watchful eye and only go to the region when the economies of the respective countries start to improve.
Finally, we intend to align our strategies for growth to Vision 2030. We believe that working with that vision Family Bank’s growth will be unequalled in the years ahead.
CONCLUSION
Finally , on behalf of the board of Family bank I would like to once again thank you for coming to grace this occasion.
I would also like to thank all our customers, all our shareholders and all the stakeholders for their continued support, their goodwill and the kind words they have always expressed about Family Bank.
We do look forward to your continued support. Further we request you to continue advocating for us to your friends and families. We know you are going to do so and we thank you in advance for your support.
MY STORY
Paperless Banking