Every other week, a Kenyan bank proudly unveils its latest branch. New signage. Balloons. Ribbon-cutting ceremonies. All to prove that they’re “expanding access.” But let’s call it what it is: legacy banking dressed up as innovation.
At a time when digital infrastructure is eating the world, when mobile penetration in Kenya sits at 133% (thanks to multiple SIM ownership) and internet penetration is above 40 million users, why are banks still chasing physical buildings instead of rethinking access itself?
The future of banking will not be won by who has the most branches. It will be won by who delivers the most seamless, embedded, and invisible financial experiences. And right now, Kenyan banks are missing the plot.
We Don’t Need Another Bank. We Need Better Banking
Kenya is not underbanked. It is under-innovated.
Over 87% of the adult population has access to formal financial services, according to the 2021 FinAccess Survey. That’s not the issue. The issue is what kind of services they’re accessing. Are they relevant? Are they embedded into their lives? Are they empowering or just extractive?
Opening another branch in Embu or Kitengela doesn’t solve delayed loan approvals. It doesn’t streamline payments. It doesn’t bring insurance, savings, or credit into the platforms where people already live—like ride-hailing apps, ecommerce sites, or WhatsApp.
That’s what Banking as a Service (BaaS) is solving globally: moving banking out of buildings and into moments.
Nubank Was Laughed at. Now it’s one of The Biggest Banks in the Americas
In Brazil, when Nubank launched in 2013 as a branchless, digital-first credit card provider, the country’s traditional banks mocked it. They said: “People want a real bank with a building.” “Nobody trusts banking via app.” “It’s just a millennial experiment.”
Fast forward: Nubank now has over 90 million customers, a market cap over $40 billion, and is rapidly expanding across Latin America. It has no branches, but it does offer:
- Real-time credit decisions.
- A mobile app that works like a personal finance assistant.
- Embedded products—from insurance to budgeting to buy-now-pay-later—inside one digital interface.
Nubank succeeded not by becoming another bank, but by redefining what a bank could be.
The Problem isn’t Access; It’s Imagination
In Kenya, M-PESA proved 15 years ago that people don’t need a bank to send, save, or borrow. Yet most banks still act like the future lies in conquering more geography instead of rethinking functionality.
What if instead of building another branch:
- A bank partnered with an agri-tech platform to embed input loans directly into a farmer’s crop management app?
- Or powered mobile lending inside an e-commerce checkout for SMEs?
- Or provided APIs for developers to build savings or insurance into community-based apps?
That’s BaaS. That’s platform banking. That’s where the global market is going.
According to Finastra’s 2024 report, over 85% of global banks are either exploring or actively implementing BaaS strategies. Meanwhile, Kenyan banks are celebrating ATM relocations.
Legacy Thinking Won’t Build a Digital Future
Here’s the hard truth: Banks that think in terms of branches are already losing. They are stuck in a model that assumes:
- Customer acquisition happens physically.
- Product innovation must be in-house.
- Control is more important than collaboration.
But the platform economy works differently. In the new world:
- ·Customers expect banking to come to them, not the other way around.
- Distribution matters more than ownership.
- Ecosystems beat silos.
Banks that adapt will win quietly, in the background, as infrastructure powering digital commerce. Those that don’t will fade even if they cut 100 ribbons a year.
Kenya Doesn’t Need Another Bank
It needs:
- Banks that open up APIs, not branches.
- Partnerships with fintechs, not PR launches.
- Real-time credit scoring, not weeks of paperwork.
- Services that meet people where they are—on their phones, in their apps, and in their lives.
The winners in the next decade will be banks you don’t even see. The losers? The ones who built branches while the world built platforms.
By Stella Muraguri– Fintech Enthusiast