Co-operative Bank of Kenya (Co-op Bank) is witnessing a dramatic shift in its business model as digital banking becomes the heart of its operations. The bank’s aggressive embrace of mobile and online channels is not only driving profits, but also deepening financial inclusion across the country.
According to its most recent report, Co-op Bank has moved more than 90% of customer transactions to digital and alternative channels — including mobile, internet banking, USSD, its “Co-op Kwa Jirani” agent network, and a 24-hour contact centre.
At the core of this shift is the bank’s MCo-op Cash mobile wallet, an all-telco app that lets customers carry out a variety of banking activities: from sending money and paying bills to accessing credit. In the first quarter of 2025 alone, Co-op disbursed KSh 19.1 billion in loans through MCo-op Cash, averaging about KSh 6.37 billion per month.
This digital lending momentum has significantly boosted Co-op Bank’s bottom line. In Q1 2025, the bank reported a net profit after tax of KSh 6.9 billion, up from KSh 6.6 billion in the same period the previous year.
Earlier, in Q3 2024, the bank posted a 4.4% year-on-year increase in net profit, which climbed to KSh 19.2 billion, largely attributed to its growing digital footprint.
To support its digital ambitions, Co-op upgraded its core banking system to Finacle, a modern platform from Infosys. This upgrade has helped the bank streamline operations, improve security, and better serve its customers across multiple channels.
Co-op’s digital strategy is not limited to convenience — it is tightly linked to inclusion. The bank’s omnichannel platform enables seamless account onboarding in under three minutes using eKYC (electronic know-your-customer), reducing reliance on physical branches. IGCB Through its network of over 16,000 “Co-op Kwa Jirani” agents and more than 5,000 POS-enabled merchants, the bank has extended its reach deep into underserved areas.
Small- and medium-sized enterprises (SMEs) are also benefiting. Co-op’s mobile e-credit solution has disbursed KSh 3.04 billion to MSMEs year to date, making up a significant slice of its loan portfolio.
In yet another bold move, Co-op Bank recently launched Kamilisha, a digital overdraft facility that allows customers — individuals and businesses alike — to overdraw up to KSh 100,000 to complete transactions. The facility automatically recovers funds from subsequent deposits, and the overdraft limit is determined based on account behavior and transaction history.
By combining technology, convenience, and affordable credit, Co-operative Bank is positioning itself as a digital-first institution that can compete with fintechs and telco-led lenders. Its strategy is bearing fruit: the bank continues to grow its customer base, boost non-interest income, and strengthen its financial performance — all while extending banking services to the underbanked across Kenya.
