Fina bank to open in Sept
Kampala
In just over a month, Fina Bank, a Kenyan-based firm, will open its doors to Ugandans to specifically uplift the Small and Medium Enterprise segment financially, a top official at the bank has said.
Fina Bank plans to start operations in Uganda with five new branches, three of which will be based in Kampala and the other pair upcountry.
"We are looking at opening in mid-September, work has already started on some of the branches and we are at the mercy of the constructors. We have also started our recruitment at senior level," said Mr Robert Warlow, the Group Chief Operating Officer, in an exclusive interview with the Daily Monitor on July 24.
The bank is expected to kick off with more than one branch to emphasize its presence since it is hardly known in Uganda. "Fina's focus is on serving Small and Medium Enterprise (SMEs) because there is a growing demand from them to have a level of service that personal and large corporate customers enjoy."
According to Mr Warlow, high profile customers are very well serviced in the East African market and yet the small businesses are given petty attention. While his observation is true, it's equally evident that the old commercial banks are beginning to introduce products that target the small investors.
Large banks like Standard Chartered Bank and Barclays, which were historically designed for clients with fat cheques recently introduced SME banking, to cater for the much ignored markets. In addition there are thousand of Microfinance Institutions that have fallen in love with the sector in question.
Fina believes that it will exploit its unique business model which focuses on understanding of the market and "high level services" to stand out of this crowd.
"As bankers, we will commit a lot of time to our customers to explain to them about our products and services to help the customer understand the business," Mr Warlow explained, adding that transparency and openness to their client will also be key.
Fina already has a footing in the Kenya and Rwanda. In Kenya, it is operating eight branches and plans to open twelve more branches between this year and 2008.
In Rwanda, it has opened five branches with plans to add three more on its portfolio. After Uganda, he said Fina will target Tanzania and Burundi, in the hunt for a regional presence. "Our aim is to facilitate trade between these countries," Mr Warlow said.
The bank is owned by four shareholders, from the United Kingdom and Kenya with a core capital valued above Sh843 million (Shs20.2 billion). Fina plans to invest $5 million (Shs8.2 billion) this year and will subsequently inject expand the investment to $8 million (Shs13 billion) in the next three year. "We will bring in the capital when we need to expand the business because it doesn't make businesses sense to over capitalise it when you don't need to," he said.
He said the bank's entry into the Ugandan market will be timely with respect to their regional plan. "It's jus the right time in our strategy, and development of the bank. We have a clear vision of being a regional bank, and Uganda plays an important role in that."
Fina is also facing increasing pressure from some of it customers doing business in the Uganda, Rwanda and Kenya, to expand in their markets. Once it opens its doors, Fina will be the third foreign African bank to start operating in Uganda following Kenya Commercial Bank (KCB), and United Bank for Africa (UBA) with a Nigerian origin.
In just over a month, Fina Bank, a Kenyan-based firm, will open its doors to Ugandans to specifically uplift the Small and Medium Enterprise segment financially, a top official at the bank has said.
Fina Bank plans to start operations in Uganda with five new branches, three of which will be based in Kampala and the other pair upcountry.
"We are looking at opening in mid-September, work has already started on some of the branches and we are at the mercy of the constructors. We have also started our recruitment at senior level," said Mr Robert Warlow, the Group Chief Operating Officer, in an exclusive interview with the Daily Monitor on July 24.
The bank is expected to kick off with more than one branch to emphasize its presence since it is hardly known in Uganda. "Fina's focus is on serving Small and Medium Enterprise (SMEs) because there is a growing demand from them to have a level of service that personal and large corporate customers enjoy."
According to Mr Warlow, high profile customers are very well serviced in the East African market and yet the small businesses are given petty attention. While his observation is true, it's equally evident that the old commercial banks are beginning to introduce products that target the small investors.
Large banks like Standard Chartered Bank and Barclays, which were historically designed for clients with fat cheques recently introduced SME banking, to cater for the much ignored markets. In addition there are thousand of Microfinance Institutions that have fallen in love with the sector in question.
Fina believes that it will exploit its unique business model which focuses on understanding of the market and "high level services" to stand out of this crowd.
"As bankers, we will commit a lot of time to our customers to explain to them about our products and services to help the customer understand the business," Mr Warlow explained, adding that transparency and openness to their client will also be key.
Fina already has a footing in the Kenya and Rwanda. In Kenya, it is operating eight branches and plans to open twelve more branches between this year and 2008.
In Rwanda, it has opened five branches with plans to add three more on its portfolio. After Uganda, he said Fina will target Tanzania and Burundi, in the hunt for a regional presence. "Our aim is to facilitate trade between these countries," Mr Warlow said.
The bank is owned by four shareholders, from the United Kingdom and Kenya with a core capital valued above Sh843 million (Shs20.2 billion). Fina plans to invest $5 million (Shs8.2 billion) this year and will subsequently inject expand the investment to $8 million (Shs13 billion) in the next three year. "We will bring in the capital when we need to expand the business because it doesn't make businesses sense to over capitalise it when you don't need to," he said.
He said the bank's entry into the Ugandan market will be timely with respect to their regional plan. "It's jus the right time in our strategy, and development of the bank. We have a clear vision of being a regional bank, and Uganda plays an important role in that."
Fina is also facing increasing pressure from some of it customers doing business in the Uganda, Rwanda and Kenya, to expand in their markets. Once it opens its doors, Fina will be the third foreign African bank to start operating in Uganda following Kenya Commercial Bank (KCB), and United Bank for Africa (UBA) with a Nigerian origin.
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Jean-Louis Kayitenkore
Procurement Consultant
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Home: +250-55104140
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Kigali-Rwanda
East Africa
Blog: http://www.cepgl.blogspot.com
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