Mixed bag of fortunes as Chase Bank opens doors to customers

Chase Bank re-opened on Wednesday offering a mixed bag of fortunes for customers, who were only allowed to withdraw up to Sh1 million with other services remaining unavailable.

Services such as mobile banking app Mfukoni, online banking, ATM and debit card transactions went live on Wednesday morning with all the mid-sized lender’s banking halls being open.

However, some services remained frozen including electronic funds transfer, credit cards, loan applications, overdraft, forex trading, foreign currency accounts, issuance of letters of credit and guarantees.

The Sh1 million withdrawal ceiling will see 167,290 account holders (equivalent to 97 per cent) receive their funds in full.

Chase Bank customers who spoke to the Nation were relieved to have finally accessed part of their funds previously locked up in the lender, but expressed concern over the remaining suspended services.

“It was very distressing for us. But they have shown good faith in opening the bank even though we can’t access some services,” said Teresa, a customer at Chase Bank’s Riverside Drive headquarters.

She said she would not consider moving from the bank, citing overdraft facilities and LPO financing as some of the services she frequently went for at Chase Bank.

Another customer Alex Wachira said he was happy to see the bank reopen saying the closure had hit his business hard.

“At least we are now happy. I’ve withdrawn using my cheque book and I tried the Mfukoni app earlier in the day and its working,” said Mr Wachira, an investment banker.

LIQUIDITY PROBLEMS

The Central Bank of Kenya on April 7, 2016 unexpectedly placed Chase Bank under receivership owing to liquidity problems created by a run on the mid-sized lender from panicked depositors.

Chase Bank’s reopening is under the management of KCB Group, working with Kenya Deposit Insurance Corporation.

Mr Vincent Muriuki, a Nairobi-based businessman, was concerned that the bank was not back “fully 100 per cent” as credit services are yet to resume.

“I do tenders, so I mostly used bid bonds,” he said.

A customer who only identified himself as George said despite being greatly affected by the closure of Chase Bank, he will not stop banking with them.

“I’ll give them (Chase Bank) the benefit of doubt and bank with them as I have been with them for the last three years,” he said.