The “No Monthly Fees” campaign by NCBA Bank Kenya is an important step in helping ease the financial strain on businesses through the removal of monthly account maintenance charges.
In July this year, the bank announced that it will not charge monthly fees for their retail banking accounts from 1st July 2024. This change will affect existing current account products and new products applicable to incoming customers.
The new adjustment applies to consumer banking account types such as salary account, Platinum Flexi, Platinum Pay as you go, Gold Pay as you go, Premier – All-in-One, Platinum All-in-One and Gold-All-in-One as well as Consumer, Commercial and SME banking accounts.
For business customers, the move offers them greater flexibility, helping them save on operational costs. Here’s a breakdown of what this campaign means for businesses and how it can support their growth.
Direct cost savings
Zero maintenance fees mean businesses can maintain accounts without the usual monthly charges. This will directly translate into direct cost savings for the businesses. For businesses, especially SMEs, the removal of these recurring charges should free funds for reinvestment.
Also, monthly charges can add up, although they seem small on their own, especially for companies with multiple accounts. Taking these costs out will improve the business cash flow which is critical to managing day-to-day operations.
Access to financial services
By removing account maintenance fees, NCBA is making banking more affordable to small business owners and entrepreneurs, who have relatively tighter budgets. This is most beneficial to small startups and emerging companies in need of cost-effective financial solutions.
Doing away with the charges is also driving the unbanked or underbanked entrepreneurs into opening accounts, which will in effect help in advancing the legalizing of businesses that mainly run on cash.
Increased transactions
Since there are no monthly charges, businesses are encouraged to use more banking services helping in growth such as merchant services, digital payments and bulk transactions
With the costs associated with transactional accounts now reduced, businesses may also be encouraged to scale their operations further since there would be no constraints or very few constraints in terms of extra fees.
Long-term business relationships
NCBA’s “No Monthly Fees” campaign also reinforces the bank’s support for Kenyan businesses, and this could help solidify customer relationships and encourage long-term loyalty.
This move separates NCBA from the rest of the pack in the banking industry and provides it an edge as a business-friendly bank most likely appealing to new customers seeking affordable banking solutions.
The waiver of these fees is helping accelerate the Bank’s customer growth strategy, a move expected to scale its Retail Banking footprint in a bid to increase affordability and provide customer-focused financial solutions.
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