alexa Jubilee, Credit Bank enter deal targeting SMEs - Daily Nation

Jubilee, Credit Bank enter deal targeting SMEs

Thursday October 24 2019

Jubilee Holdings Regional CEO Julius Kipng’etich

Jubilee Holdings Regional CEO Julius Kipng’etich (left) and Credit Bank CEO Betty Korir sign a partnership deal on October 23, 2019 at the Nairobi Serena Hotel. PHOTO | SALATON NJAU | NMG  

JAMES KARIUKI
By JAMES KARIUKI
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Regional listed underwriter Jubilee Holdings Wednesday inked a partnership deal with Credit Bank that will see the firms create loan financing and insurance products that will be tailor-made for small and medium sized enterprises (SMEs).

The insurer and the tier III lender have agreed to share information that will facilitate formulation of products to be sold under a bancassurance model to SMEs as a way of growing their risk appetite.

“We are leveraging on our financial strength and experience gained over the years across the East African market to create products that fit the needs of SMEs. This will see SMEs that are mass employers expand their business knowing they are insured,” Jubilee regional chief executive Julius Kipng’etich said.

Credit Bank chief executive Betty Korir said the unified loan-cum-insurance products will be competitively priced to enable the lender disburse money for small to big-ticket deals. This, she said, will help the lender retain business that has in the past been insured by foreign underwriters.

Customer links

“Trade finance makes 35 percent of our SME loan business that has in the past seen us pay premiums to foreign underwriters. This business will now be channeled to Jubilee that will enjoy access to information that helps them tailor-make products that suit local SMEs,” she said.

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Credit Bank, which has strong SME customer links, is eyeing tier II status by year-end.

Dutch Private equity fund Oiko Credit recently bought 22.8 percent stake in the lender for Sh1 billion.