Seminario académico de Finanzas y Contabilidad

Fecha: Jueves 24 de mayo, 13:00 horas, sala P307, Facultad de Economía y Negocios

Título: “Improving Access to Banking: Evidence from Kenya”

Expositor: Patricio Valenzuela, profesor Asistente del Departamento de Ingeniería Industrial de la Facultad de Ciencias Físicas y Matemáticas de la Universidad de Chile.


The paper analyses the case of Equity Bank to explore the relationship between bank branch expansion, financial inclusion and bank profitability. The findings show that, unlike traditional banks in Kenya, Equity Bank pursues branching strategies that target under-served territories and less privileged households. Its presence has a positive and significant impact on households’ access to bank accounts and credit, especially for Kenyans who are less educated, do not own their own home, and live in less-developed areas. Equity Bank’s business model proves to be profitable both at the bank and branch level as it allows the bank to pursue an aggressive pricing schedule, reduce delinquency rates, and secure inexpensive funding in the form of retail deposits.