The Kenya Bankers Association is set to host the #CEOchat forum on Friday, 30 October after a seven months hiatus occasioned by the COVID19 pandemic. The forum under the theme Banking Industry Growth and Consolidation Trends amid Heightened Uncertainty will run from 10 am and the association will host NCBA Bank CEO John Gachora.
My Chat with a Bank CEO is a forum by Kenya Bankers Association where Bank CEOs engage social media users on topical issues in the banking industry.
The COVID19 pandemic slowed economic performance and conditions thus affecting the balance sheet growth and asset quality. The projected slowdown in economic growth in 2020 implies that the credit market conditions will remain tight. At the end of 2019, non-performing loans remained high at double digits as a share of gross loans as has been the case for the last four year; 2017 (12.3%), 2018 (12.7), 2019 (12.6).
In August, KBA released the State of the Banking Industry Report 2020, which indicated that the Kenyan banking sector was sufficiently capitalized to weather the shocks arising from the prevailing economic slowdown without triggering systemic instability.
In addition, the report said that banks were quick to switch to a digital-first banking model owing to the industry’s heavy investment on digital infrastructure in recent years. Mr Gachora will highlight ways the use of digital and mobile banking solutions will shape the future of banking by enabling more people to access banking services beyond branch networks.
The report projected that NPLs for 2020 will grow to 13% as banks issued moratoriums and restructure loans for distressed households and businesses.
It is on the back of these conditions that Mr. Gachora will give insights on reimagining banks towards sustainable and inclusive growth. He will highlight the ways in which technological innovation has enabled the industry to reduce the cost of credit through tech-aided enhanced operational efficiency.
Furthermore, Gachora will expound on the mergers and consolidation witnessed in the banking industry as banks look to tap into the benefits of economies of scale. In particular, he will look into the banking industry technology-led integration through innovation such as PesaLink.