Digital Innovation in Kenya’s Banking Sector: How NCBA is Transforming Business Banking

Kenya’s banking sector is experiencing a digital reawakening one that is not just technology-centric, but driven by rising demand for smarter, simpler, and more secure banking experiences.

At the forefront of this disruption is digital disruption in Kenya’s banking sector, and NCBA Bank is fast becoming one of its pioneers.

With more tech-savvy consumers and shifting expectations, banks are being forced to break out of traditional models. No place is this more evident than with Small and Medium Enterprises (SMEs), who make up the foundation of Kenya’s economy.

These businesses are challenging financial institutions to think outside the box in terms of how banking can better support growth in a fast-changing digital era.

For NCBA, that rethinking has manifested in the shape of a deliberate focus on technology-driven solutions towards simplifying and making banking easier to access.

Speaking on an interview with CNBC Africa, NCBA Kenya Managing Director James Gossip elaborated how the bank is leveraging digital innovation to serve corporates and SMEs better.

“Kenyan SMEs account for approximately 30 per cent of GDP growth, and out of that, approximately 80 per cent comes from micro-SMEs. They’re a very important segment of the economy,” Gossip said.

Over the past two and a half years, NCBA has been engaging directly with customers to reinvent its technology-and-customer-experience-based corporate and SME banking business model.

The result of that engagement is ConnectPlus a cloud-based next-generation corporate bank platform that seeks to simplify, secure, and consolidate digital banking for businesses in East Africa.

Unlike typical tech launches born out of boardroom imagination, NCBA’s initiative was co-created deliberately.

“The approach we are taking is not to try to come up with something in a boardroom or a hackathon,” Gossip said. “We go and sit down with customers and say, ‘Does this work for you? If not, tell us what would.'”

Through this process, three basic customer priorities emerged: security, flexibility, and value.

1. Security: With cyberattacks on the rise, businesses demanded more protection for their data and transactions.
2. Flexibility: Clients wanted easy access to banking products on all devices smartphones, laptops, and so forth.
3. Value: SMEs mostly wanted more transparency and more competitive rates, fueled by smarter digital platforms.

In addressing these needs under its innovation strategy, NCBA has developed a customer-centric digital platform. More than 20,000 customers currently use ConnectPlus to track their finances in real time from cash and payment management to liquidity management.

NCBA’s digital experience also reflects the broader trends shaping digital banking innovation in Kenya.

With more than 145 per cent mobile penetration and nearly 70 per cent of the population being below 35 years old, Kenya’s market is poised for digital-first financial products. For banks, that means innovation is no longer a choice it’s the only direction.

To stay one step ahead, NCBA has collaborated with global technology providers so that enterprise-grade security and agility are the building blocks for all new services.

ConnectPlus is no longer a platform; it’s a statement of intent a commitment to help businesses bank, invest, and grow with confidence in a digital world.

As Kenya’s economy continues to evolve, here’s one thing for sure: technological innovation within Kenya’s banking sector isn’t just changing the way banks do business it’s transforming how businesses thrive.

Read Also: ConnectPlus: NCBA’s Bold Move to Lead East Africa’s Fintech Transformation