According to a recent report by Cytonn Investments themed ‘Consolidation in Kenya’s Banking Sector to Continue’ there has been various consolidation activities in the banking sector, Over the last 8-years, as banks either acquire smaller banks or merge and form strategic partnerships with other banks to form relatively larger companies.
“Consolidation activity has picked up in the recent past as smaller banks that have struggled to operate under the interest rate cap regime are acquired by their larger counterparts, while some of the banks have been forming strategic partnerships.
Some of the consolidation activity has also been driven by remediation of collapsed banks that had been under receivership, such as Imperial Bank Ltd, and Chase Bank Ltd,” the report continued.
There are numerous mergers and acquisitions underway in the country’s corporate circles. Several have happened before and hence giving a new life to the business.
In this context, Aly-Khan Satchu, CEO, Rich Management Limited, moderated a panel session titled ‘Winter is coming for the financial industry’ featuring: Louis Otieno, Board Member, Barclays Bank of Kenya William Nanjero, Digital Finance Expert, IFC Patrice Kiiru, Director, Equity Group and Ireneus Gichana CEO Maisha Bank, during the CIO Fintech Summit to attempt and explain the CIO’s role in M&A deals.
According to Louis Otieno, Board Member, Barclays Bank of Kenya, in this environment of mergers and acquisitions, “CIOs need to ensure that the strategies around mergers and acquisitions in their organisations are technology led by:
- Highlighting the importance of partnering with Fintechs that have different capabilities during mergers;
- Ensuring that they educate the banks on the importance of embracing technology;
- Suggest that employees are trained in technology during the time M&A deals are taking place.
William Nanjero, Digital Finance Expert, IFC echoed Otieno’s sentiment of banks training their existing staff members while M&A deals are taking place inline with technologies inorder to safeguard their futures.
“As banks consolidate, they also affect people already working there. So, the banks should know how to integrate their internal team members especially in this digital age,” said Nanjero.