Kenya’s banking sector continues to evolve rapidly, driven by changing customer expectations, technological innovation, and dynamic market risks.
According to NCBA Bank Kenya Managing Director James Gossip, digital transformation has become the key differentiator shaping growth, competition, and risk management across East Africa’s financial landscape.
Speaking during an interview on emerging banking trends at CNBC Africa, Gossip emphasized that small and medium enterprises (SMEs), which contribute about over 30% of Kenya’s GDP and employ the majority of the population remain at the heart of NCBA’s innovation agenda. “Over the past two and a half years, we’ve reexamined how our digital platforms can work better for SMEs,” he said.
Through this engagement, NCBA identified three key priorities among SMEs: security, flexibility, and cost efficiency. Security ranked highest, prompting NCBA to launch East Africa’s first cloud-based banking platform, designed to enhance safety and reliability in digital transactions. Flexibility across channels, mobile, desktop, and web also emerged as a crucial need, ensuring that SMEs can access banking services seamlessly from any device.
The bank’s flagship digital solution, Connect Plus, has already recorded strong traction, with over 20,000 clients signed up shortly after launch. The platform was developed using an agile approach, with continuous customer feedback shaping ongoing enhancements. “We receive suggestions daily from customers on how to improve the platform,” Gossip noted, describing the process as a new model for how modern banks must operate.
Kenya continues to lead the region in digital banking adoption, with mobile banking penetration exceeding 145%. Gossip attributed this to the country’s youthful population, of which around 70% are under 35, making them highly mobile and tech-savvy. “It’s a very young population that tends to be digital-first, and that’s reflected in the penetration rates,” he explained.
NCBA’s digital transformation strategy is also supported by collaborations with FinTech partners, enabling faster product rollouts and improved customer experiences. “The goal is not to invent solutions in isolation but to co-create them with customers,” Gossip added.
NCBA’s data-driven, customer-focused approach is positioning itself as a key enabler of SME growth and a leader in shaping the region’s next era of digital banking.