MICROCAPITAL BRIEF: K-Rep Bank of Kenya Spends $600k on Temenos IT System to Integrate Branch Data

K-Rep Bank, a Kenyan commercial bank focused on providing services to poor people, has spent an estimated KES 50 million (USD 582,000) to upgrade to a software system from Switzerland’s Temenos called “T24 for Microfinance and Community Banking” [1].  The upgraded system integrates all K-Rep branches, whereas each branch operated as a separate entity previously. In addition, the bank will be able to offer customers improved loan statements, transaction records and mobile banking services, such as integration of customer accounts with customer mobile phones [1].  Details on the upgrade of mobile services are unavailable.  According to the US-based NGO Microfinance Information Exchange, K-Rep Bank had a gross loan portfolio of USD 74.2 million, USD 95.0 million in assets, 0.68% ROA, 4.42% ROE, and 65,073 active borrowers in 2010.

By Natalie Baer, Research Associate

About K-Rep Bank: K-Rep Bank is a commercial bank based in Kenya that focuses primarily on the microfinance sector. It was founded in 1999 by K-Rep Group Limited, a Kenyan microfinance enterprise established in 1984. Its products and services include microfinance loans, business loans, savings accounts and money transfer services. According to the US-based NGO Microfinance Information Exchange, K-Rep Bank had a gross loan portfolio of USD 74.2 million, USD 95.0 million in assets, 0.68% ROA, 4.42% ROE, and 65,073 active borrowers in 2010.

About Temenos: Founded in 1993 and listed on the Swiss Stock Exchange, Temenos provides banking systems for retail banking, corporate and correspondent banking, universal banking, private wealth management, Islamic banking, and microfinance and community banking. As of July 2011, Temenos works with approximately 1,000 financial institutions in 125 countries. For the year ending December 31, 2010, Temenos reported total assets of 984 million and net income of USD 37 million.  T24 for Microfinance and Community Banking (T24 for MCB) has been at deployed at 117 microfinance and community banking sites in 41 countries. Based on T24 Software for traditional banking, T24 for MCB comprises: group lending, exception-based payments, contract-based and account-based lending, flat-rate lending methodology, investor funds tracking and credit union functionality.

Source and Resources:

[1] K-Rep Bank is updating its IT system, http://www.businessdailyafrica.com/KRep+steps+up+retail+banking++services+with+IT+system+upgrade+/-/539552/1310448/-/13vqwk5/-/

MicroCapital Universe Profile: Temenos Group AG, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Temenos+Group+AG

MicroCapital Universe Profile: K-Rep Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=K-Rep+Bank

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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