Strategic Plan for Family Bank Limited, Kenya

Abstract

Purpose: Family Bank Limited, established in 1984 as Family Finance Building Society, has evolved into a leading bank serving the mass market in Kenya. It caters to diverse clientele including SMEs, artisans, farmers, educators, government employees, NGOs, and private organizations. With over 1.8 million customers, the bank focuses on technology-driven savings options and affordable loans for various needs, from working capital to education and medical expenses.

Findings: Family Bank's journey began with a single branch, but it has now expanded to 92 branches across the country. The bank's commitment to innovation is evident in its introduction of paperless banking using smart-card technology, allowing deposits without paperwork. It also pioneered offering loans for purposes like school fees and food expenses. The bank's financial success is reflected in its consistent profitability and growth. In 2013, it achieved a significant milestone by surpassing the one-billion-shilling mark in pre-tax profit. This growth has been driven by lending, deposit expansion, and an increasing customer base. One of Family Bank's strengths lies in its strategic partnerships, which have enabled it to tap into diverse sectors of the economy. It partners with organizations like water.org to provide financial solutions for water service providers and supports the health sector through partnerships with medical associations. However, like all institutions, Family Bank faces challenges. The COVID-19 pandemic has brought about unprecedented economic disruptions globally. Despite this, the bank has demonstrated resilience and adaptability. It waived charges for balance inquiries and money transfers, offered loan relief, and extended its digital services to ensure safe and convenient transactions.

Family Bank's strategy for the future revolves around sustainability, responsible banking, and contributing to Kenya's economic development. It has set ambitious goals to enhance customer-centric services, invest in people and technology, achieve operational excellence, and drive a differentiated customer experience. Through these efforts, the bank aims to continue its positive impact on people's lives and contribute to the nation's growth

Contribution to policy and practice: Family Bank Limited has evolved from its inception to become a significant player in Kenya's banking sector. Its focus on innovation, customer-centric services, and strategic partnerships has enabled it to thrive even in challenging times. With a clear vision, mission, and commitment to sustainability, the bank is well-positioned to contribute to both its customers and the nation's development in the years ahead