Faulu Acquires Ksh 900M Funding for Digital MSME Banking
Faulu Microfinance Bank is set to enhance its digital financial services and streamline its distribution channels, bolstered by a significant investment exceeding Ksh 900 million from its parent company, Old Mutual.
CEO Julius Ouma highlighted Faulu’s dedication to leading the digital finance sector, highlighting substantial investments in digital capabilities over the past 18 months.
“We are eager to become a leader in the digital finance space. Many of the services that the bank offers are now available online, and our intention is to make our services more accessible for our customers,” said Julius Ouma yesterday.
As part of its strategic realignment, Faulu plans to expand its support for Micro, Small, and Medium Enterprises (MSMEs), recognizing their vital role in Kenya’s economy. This includes strengthening an already active agency network and launching a robust digital lending platform to facilitate easier access to working capital for MSMEs.
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“We see great opportunity to grow our investment and support amongst MSMEs as they represent the life blood of our economy. We will also be providing more convenient transactional services. Over the last year, we have partnered with strategic partners to provide working capital facilities to MSMEs through a flagship digital lending platform. We will also be providing more convenient transactional services across the board.” Ouma noted.
The bank also intends to optimize its distribution channels to better serve its expanding customer base effectively. With a renewed focus on enhancing transactional convenience and customer experience, Faulu aims to remain competitive in Kenya’s dynamic financial services sector.
Arthur Oginga, CEO of Old Mutual Holdings, affirmed the company’s commitment to supporting Faulu’s strategic initiatives, ensuring alignment with market demands and enhancing customer value sustainably.
“With this change, we are both enhancing the Faulu service offering to our existing and future customer network, as well as positioning the business to deliver more value sustainably. Faulu has the full backing of Old Mutual in these endeavours, and we are confident that the refocus will drive shared value for all our stakeholders.” Arthur Oginga said.
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George Maina, Faulu’s Chairman, expressed confidence in the bank’s strategic direction, emphasizing its commitment to becoming customers’ trusted financial partner. This refocus not only aims to meet evolving customer needs but also to drive enhanced value across stakeholders, reinforcing Faulu’s position as a leading financial services provider in Kenya.
“This refocus is also in line with our purpose of being our customers’ most trusted financial partner and helping them achieve their financial goals. It is also critical to the bank’s ongoing competitiveness in an ever-expanding financial services sector in Kenya. We are excited at the opportunity to refocus the Faulu business as we believe that it will deliver enhanced value for both our customers and our business.” Mr Maina said.
Faulu anticipates rolling out these enhancements within six months, signaling a proactive approach to delivering superior financial solutions and reinforcing its commitment to operational excellence and customer-centricity.
