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Credit Bank

Via Credit Bank.

Category : Ethical Financial Institution

Our vision is to be the most respected financial institution in our target market and our mission is to transform the financial landscape through innovative and relevant financial solutions. At the very heart of who we are at Credit Bank is the desire to transform the social-economic welfare of our people by offering innovative financial solutions. Behind this desire is a team driven by integrity and excellence. We pride ourselves in our commitment to environmental, social, and governance principles.  We focus on supporting actions of collective value that contribute beyond merely obtaining financial profits. Here are some of the ways we do this:

1. Governance

Our commitment to a  value system that people truly believe in and uphold is indeed more valuable than structures and processes. Why value trounces structures and processes is that the latter can be circumvented, the former is inherent. Therefore, to add to the definition of Corporate Governance Credit Bank insists on including values; values that govern relationships amongst stakeholders.

For this commitment, we received recognition from CFI.co as the Best Commercial Bank in Governance in the 2018 awards.

Further, as part of its commitment to promote sustainable development among its clients and to foster sound environmental and social (E&S) management in the activities that it finances, the Bank developed and implemented the Environmental and Social Policy on 1st December 2022.  The Policy defines the Bank’s commitments and standards that the Bank applies to its borrowing clients in the relevant lending transactions as well as how the Bank governs the environmental and social issues within its lending portfolio. 

2 Sustainability

In recognition of the significant role SMEs play at Credit Bank, we have positioned to serve this segment with specifically designed products and services that meet the unique needs of our customers in various sectors including manufacturing, agriculture, services, and trade. Further, because many SMEs (e.g. 400,000 KNBS 2017) collapse within the first three years of inception, we have partnered with various organizations that provide technical expertise to our SMEs to ensure financial instruments by the bank are provided in tandem with technical assistance thus increasing chances of success and contributing to their business longevity and sustainability.

In addition, part of our portfolio includes climate-smart financial solutions tailored toward water harvesting, solar energy, and biofuel technology. For example, are currently financing 11 projects valued at between $15-30 million in the renewable energy sector. To ensure the value of the projects, we work with companies to ensure the transfer of technical skills to locals.

Our Contribution to Sustainable Finance in Kenya has been recognized by the Kenya Association of Manufacturers (KAM), during the Energy Management Awards. This recognition is a testament to our mission, ensuring social-economic impact through the provision of financial solutions.

3. Focus on People

Our customers and staff are at the heart of everything we do.

  1. Staff training and capacity building

We note that the staff are the face of the Bank, we have therefore embedded governance principles in all our operations.  on 1st December 2022, Credit Bank implemented the Environmental and Social policy which was rolled out to all staff through familiarization sessions and trainings. Upon implementation of the policy, all Credit Bank staff across the network received high-level awareness of the E&S Policy and continue to do so at least annually as part of the annual Enterprise Risk Training. The designated E&S Risk Officer in collaboration with the HR facilitates specialized training on the E&S Policy for relevant employees who regularly deal with specific E&S matters.

In addition, the Bank onboarded a consultant to assist in implementing the broad sustainability agenda and strategy and having it entrenched in our business operations. To build capacity and ensure the right skill set, the Bank through the consultant invested in an online training platform dubbed “Kajabi’. |Through this platform all staff participated in the learning program with progress tracked regularly between 1st and 31st March 2023. 

  1. Staff Declarations

To promote and maintain high levels of ethics and integrity among staff, the HR policy has implemented an annual Staff code of conduct signed by all staff annually. The declaration serves as a reminder to staff on the contents of the credit Bank code of conduct. The code ensures that staff are committed to upholding inclusivity, dual custody in the implementation of processes, avoidance of relationships that can translate into conflict of interest, integrity, and safeguarding of customer data.

  1. Nonfinancial customer support

 As part of its commitment to providing nonfinancial support to customers, the Bank offer has implemented eHub which is a platform designed to enable small and medium-sized enterprises (SMEs) to scale and become competitive across industries. eHub provides a platform for customers to network, learn, and do business. 

The video below is a testimonial of our client Goshen Farms who has been a beneficiary of both financial and non-financial support.

  1. Leveraging on partnerships

In March 2023, Credit Bank in partnership with International Finance for Agricultural Development (IFAD) implemented a project aimed at facilitating access to affordable remittances and enhancing financial inclusion for remittable rural families in Kenya.  The partnership entails working closely with SACCOs in rural Kenya and other key players in the remittance space. Some objectives of the project which is at the tail end of implementation include:

  • Enable unbanked rural receivers of remittances access to formal banking services through a basic and transparent bank account.
  • Improve remittance accessibility and financial literacy of partner Sacco members through training and coaching programs. (SACCOs onboarded so far include Skyline SACCO and Solution SACCO)
  • Strengthen migrant access to financing services, high-yield savings, investments, and assets.

See media stories on the partnership.

 4. Compliance with ethical and legal standards

Credit Bank is committed to compliance with regulations related to finance, environmental protection, and social responsibility.

Under the stewardship of the Risk and Compliance Department, the Bank complies with and adheres to:

  • The civil and criminal Laws of Kenya together with the constitution. 
  • Guidelines and prudential standards as set out by the Central Bank of Kenya. 
  • The code of Banking practices by Kenya Bankers Association.
  • The Banking Act.
  • Financial Reporting Centre (FRC) Regulations.
  • Appropriate International Best Practices.

For instance, to ensure compliance with the Tax Procedures Act and Regulations 2023, the bank has over the last 6 months implemented a customer and staff education campaign to create awareness of common reporting standards (CRS) as well as ensure compliance by holders of reportable accounts.

5. Getting involved in the community

  1. Leveraging Technology to reduce the Bank’s carbon footprint (paper transactions).

Credit Bank is well on its way to becoming a digital bank that focuses on leveraging technology to fully support SME clientele. The bank has leveraged technology to enhance automation and seamless banking to help reduce the bank’s carbon footprint (reduced use of paper)

We are continuously engaged in ensuring that we innovate to provide solutions that our customers are looking for. In the last two years, the bank has greatly invested in technology that has allowed our customers convenience on the go. As of October 31st, 2023, the total count of transactions at the branches formed only 8% while 92% of the total count was transacted via digital platforms (Internet, Mobile, and Card).

  1. Corporate Social Responsibility

We live in a world where our future needs to be socially responsible, not just as individuals but as organizations. Credit Bank aims to manage the business processes to produce an overall positive impact on society. This involves a range of activities such as working in partnership with local communities, making socially responsible investments, developing relationships with employees and customers as well as environmental protection and sustainability.

Kenya ESG Awards
Kenya ESG Awards
https://kenyaesgawards.com

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