Kenya Post plans automation to boost financial services
Postal Corporation of Kenya is automating its branches to inject efficiency into its operations as it looks to grow its financial services division.
The corporation plans to automate its back office operations in 340 post offices out of a branch network of 700 branches countrywide.
Financial services, account for 19 per cent of the total turnover – which came to about 3.2 billion last year – and it is expected to play a huge part in the revenues of the corporation in the coming years, Postmaster General, Fred Odhiambo said.
Financial services firm, Old Mutual, became the latest to partner with Posta to allow its customers to pay for monthly contribution into the pool of invested funds, Unit trusts, through Postapay service.
Old Mutual is eyeing to take the partnership a notch higher by selling its insurance products at the post office starting early next year according to Tavazia Madzinga, deputy group chief executive officer at Old Mutual.
However, this will have to be under the tight scrutiny of the Insurance Regulatory Authority for products which require end users — customers in this case — to be made fully aware, necessitating the need for an insurance agent at the point of sale.
The penetration of insurance products still remain relatively low and is estimated at a paltry three per cent of the Kenyan population.
Postal Corporation of Kenya is automating its branches to inject efficiency into its operations as it looks to grow its financial services division.
The corporation plans to automate its back office operations in 340 post offices out of a branch network of 700 branches countrywide.
Posta targets with the computerisation the strength to have “good to excellent communication between branches,” forming a backbone for other firms to leverage on its branch network.
Financial services, account for 19 per cent of the total turnover – which came to about 3.2 billion last year – and it is expected to play a huge part in the revenues of the corporation in the coming years, Postmaster General, Fred Odhiambo said.
“Automation is more profitable because it counters the manual process,” he said estimating that the corporation will spend Sh250 million in the next financial year in the process.
This against the backdrop of reports the corporation was losing millions to fraudsters through its electronic money transfer, Postapay, and an audit would be run.
Mr Odhiambo said that the process of tendering for the provider of forensic audit services is set to commence in due course.
Financial services firm, Old Mutual, became the latest to partner with Posta to allow its customers to pay for monthly contribution into the pool of invested funds, Unit trusts, through Postapay service.
Old Mutual is eyeing to take the partnership a notch higher by selling its insurance products at the post office starting early next year according to Tavazia Madzinga, deputy group chief executive officer at Old Mutual.
However, this will have to be under the tight scrutiny of the Insurance Regulatory Authority for products which require end users — customers in this case — to be made fully aware, necessitating the need for an insurance agent at the point of sale.
The penetration of insurance products still remain relatively low and is estimated at a paltry three per cent of the Kenyan population.
This has seen the insurance companies come up with innovative product to suit particular segments of the market. One of the reasons these products have been moving slowly was the notion among the masses that insurance belonged to the upper class.
Some of the insurance providers point to the fact that the morbidity table, used to determine the premiums based on one’s age, has not worked considering the lifestyle changes, which have pushed life expectancy rates higher requiring a corresponding drop in insurance premiums.
Insurers are also boosting marketing and sales by using well-informed teams and through the banks to have the products presented and explained to potential policy holders.
