Local banks in race for share of diaspora cash

What you need to know:

  • However, there have also been complaints of poor customer service from those who were lured by the first wave of the diaspora banking campaign.
  • “Kenyans in the diaspora are used to being treated with trust, respect and commitment from service providers, and they expect the same level of service from Kenyan businesses bidding for their money. Unfortunately, there is still a lack of proper customer relations,” said Mr David Amakobe in Delaware.

When the head of diaspora banking at KCB arrived in Boston, Massachusetts, in mid-April to tap into the lucrative market of Kenyans living in the United States, he was under no illusion that the task would be easy.
After all, Mr Vincent Aberi and his team were making forays into an area into which their main competitors in Kenya — including Equity Bank, Co-operative Bank and Chase Bank — had already ventured.

But after almost two months of travelling across the country trying to convince Kenyans to partner with KCB, Mr Aberi learnt that it would not be that easy.
“My trip to the US has been an eye-opener. Kenyans here are ready to invest back home, but we have under-served them,” he told the Sunday Nation

He said even though KCB was “joining the game at half-time,” years after their main competitors, he was sure their strategy would succeed. 

Mr Aberi had lived in the US for more than 18 years, and this experience came in handy because he already had a driver’s licence and the right contacts.
 “I relocated to Kenya early last year, so in spirit and outlook, I’m still part of the diaspora,” he said.

Reaching out to Kenyans who live outside the Washington, DC area has been a big challenge for most banks. This is one reason why local banks still don’t have a huge customer base, according to Ms Caroline Kimani, the diaspora banking manager at Commercial Bank of Africa.

“America is so big, making it so hard to reach those Kenyans who don’t live in DC or other major cities. We sometimes rely on agents and online banking,” Ms Kimani said in an earlier interview.
In fact, local banks use events like the annual Diaspora Conference in DC, the Las Vegas Rugby Sevens tournament or the Boston Marathon to attract Kenyans.

“From my experience, even if these big events are good for publicity, participants rarely have time to process any meaningful business because of the tight programmes. In fact, those who have the time and money to invest in Kenya are found in small cities,” Mr Aberi said in Delaware, the smallest state in the US.

However, there have also been complaints of poor customer service from those who were lured by the first wave of the diaspora banking campaign.

Level of service

“Kenyans in the diaspora are used to being treated with trust, respect and commitment from service providers, and they expect the same level of service from Kenyan businesses bidding for their money. Unfortunately, there is still a lack of proper customer relations,” said Mr David Amakobe in Delaware.

One such dissatisfied customer is Mr Cliff Nakitare, a Kenyan resident of Elkton, Maryland.

“Sometimes I can’t access my own money, and when I call the bank there is nobody to speak to me. Even when I am lucky to reach a representative, I am treated as if I owe them money,” he said.  
This is an issue Ms Milka Wachira and Ms Diana Namaemba Lyambila of Chase Bank in Nairobi admit they are working to resolve.

“Kenyans in the diaspora expect to be attended to promptly when they call. We are one of the banks that provides that kind of personalised service,” Ms Lyambila said.
Ms Wachira, the diaspora banking manager, says that exposure to world class services abroad means Kenyan customers in countries like the US are used to a particular way of treatment. She believes Chase Bank has got it right and is attracting more customers in Europe and the US.

Mr Aberi of KCB believes the future of the diaspora business belongs to institutions that follow international standards.
“The diaspora is ready for us, but how ready are we for them?” Mr Abeeri said.
“Many are wary, having lost their money through either relatives in Kenya or scammers pretending to be investment gurus,” he said.