The growth of Postbank has been, in a word, spectacular. Reliability and efficiency have been instrumental in turning it around. It now boasts a large, solid and diversified customer base with a history of unparalleled feats and a record of many firsts.
Postbank, as the Kenya Post Office Savings Bank is now popularly known, has experienced phenomenal growth with its focus as “The Bank of Choice” neatly dovetailing with Vision 2030 in the noble quest of taking banking closer to Kenyans. Postbank recognises the importance of innovation and opportunity. Almost everyone can trace their first banking experience to Postbank — millions of Kenyans have been served by this bank since 1st April, 1910, when the first account was opened in the then Savings Bank. Millions of Kenyans have held an account at Postbank. About 8 out of every 10 account holders in any bank today started their banking at Postbank. It boasts 1.2 million active account holders. Its balance sheet showcases a formidable asset base standing at KSh17 billion, a 10 per cent growth rate from 2009.
Postbank traces its history from 1910 when it opened its doors to the first customer and was fashioned as a savings department within the then colonial set-up. The Colonial Government in the East African Protectorate identified the name to mobilise savings for development. The region operated a uniform currency until the 1970s, when one could withdraw or deposit money in any part of the region during the East African Community days.
| With the breakup of the community in 1977, the Kenya Government established the Kenya Post Office Savings Bank. Since then, Postbank has been in the forefront in providing savings and retail banking within the mandate of inculcating a savings culture among Kenyans.
Postbank is primarily engaged in the mobilisation of savings for national development. Other major services offered by the Bank include: local and international money transfer services, collection and disbursement services for local and multinational organisations in both public and private sectors, utility payments and a local and international VISA credit card under the sponsorship of a commercial bank. The Bank’s extensive coverage is an essential ingredient in Kenya’s success as a major financial hub.
Celebrating a Century of Savings
The Kenyan spirit of enterprise and hard work has shaped the framework of a glorious centenary. Postbank is truly a financial institution that was there yesterday, is there today and will be there into the future. Indeed, the story of Postbank is the story of Kenya.
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A Bank of Many Firsts
The Bank is revered for its pioneering efforts to bring the benefits of modern financial services to Kenyans pegged on convenience and innovation. In 1910, it was among the first locally incorporated and indigenous banks. Over the years, Postbank has been able to accelerate growth in customer deposits by adopting a new service delivery technological platform which facilitates fast customer service.
Postbank offers customers paperless banking services through the use of Point of Sale Terminals (POS) at all teller locations across its 92 branches and over 50 agent locations. Postbank is the pioneer, offering Kenyans simplified banking services through the Teller POS, including instant issuance of Postbank Cash Xpress debit cards. In this new system, Postbank offers paperless banking as no forms are completed for all banking transactions. The card and the PIN number are all that are needed to transact business.
Through the use of automated teller machines (ATMs) and those of partner institutions such as Kenswitch and Pesapoint, Postbank customers have access to over 658 ATMs as service points. This way, Postbank leverages on the strengths of the two ATM networks.
It was the first bank to introduce remittances in 1995 through Western Union money transfer service that allows customers to send and receive money from anywhere across the globe. Postbank was also the first financial institution to become an M-Pesa agent.
Postbank is among the first financial institutions to be ISO 9001:2000 certified in line with initiatives to improve service quality within the requirements of the Ministry of Finance. To her customers, this means quality of services and high standards that meet their expectations. Postbank also launched a Service Charter that captures the Bank’s commitment to high standards of service in all aspects of business.
The Bank developed the Service Charter as a promise to its customers in line with its mission of providing accessible and sustainable banking and related financial services.
Postbank has also been among the pioneering public institutions that have embraced the open office plan in line with government policy.
Banking the Unbanked across the Continent In an effort to take services closer to the majority of the unbanked and under-banked Kenyans, Postbank is currently rolling out an innovative branchless banking model using agents. The project, being implemented through a partnership with WSBI (World Savings Bank Institute) and the Bill & Melinda Gates Foundation, involves the deployment of Point of Sale (POS) terminals and working in partnership with retail and other outlets to extend banking/financial services to communities across the country. Enhancing access to finance and mobilising savings are part of the bigger picture in the financial pillar of Vision 2030.
Under a similar initiative of the WSBI/Bill & Melinda Gates Foundation to access finance, Postbank Kenya is also currently providing technical support to Lesotho Postbank in a project involving the bank’s automation and expansion.
The Next Century
In the auspicious journey towards the next century and beyond, Postbank can look back with pride as having carried out its mandate successfully, through expansion of its outreach and development of products and services that meet the expectations of customers.
In providing these services, we are guided by a shared vision and values of professionalism, diligence, integrity, teamwork and respect towards customers and stakeholders.