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Talk about credit cards? Certainly!

A credit card is a financial instrument that allows you to borrow money from a lender in order to make purchases or withdraw cash. When you use a credit card, you are essentially borrowing money from the credit card issuer up to a certain limit, and agreeing to pay back the borrowed amount plus interest.

Credit cards can be a convenient way to make purchases and access cash. It is important to use them responsibly in order to avoid debt and maintain a good credit score especially during this inflation period. To use a credit card, you will need to apply for one & be approved by the issuer like I&M Bank. You will be given a credit limit, which is the maximum amount that you can borrow at any given time.

You can make purchases or withdraw cash up to this limit. Each month, you will receive a statement detailing your purchases and any fees or interest charges that have been applied to your account. You will then have the option to pay off the entire balance, or just a portion of it. If you only pay a portion of your balance, the unpaid amount will accrue interest, which can be expensive over time.

Also read on possible ways of Managing Credit.

There are many different types of credit cards available, each with its own features and benefits. Some credit cards offer rewards programs, such as cash back or points for every dollar you spend. Others may have lower interest rates or offer introductory promotions such as no interest for a certain period of time.

It is important to compare credit cards and choose one that best meets your needs and financial situation. It is also important to use credit cards responsibly in order to avoid debt and maintain a good credit score. This means, only using your credit card for purchases that you can afford to pay off in full each month and not exceed your credit limit. If you use credit cards responsibly, they can be a very useful financial tool.

Also read 5 things to look at when choosing your potential Business banking partner.

By Omido Joshua

Financial freedom is a state of having enough wealth to live on without having to work for money. It's the ability to have control over your time and the ability to do what you want, when you want, without having to worry about money. For many people, financial freedom is a life-long goal that they strive to achieve. In this article, we will explore the concept of financial freedom and the steps you can take to attain it.

Generate income that doesn't require your active involvement.

To start, it's important to understand that financial freedom doesn't mean you'll never have to work again. Rather, it means that you'll have enough passive income to cover your living expenses, so you can choose to work if you want to, rather than because you have to. There are many ways to generate passive income, such as investing in real estate, stocks, or bonds, or starting a business that can run without you. The key is to find ways to generate income that doesn't require your active involvement.

Continuously educate yourself about personal finance.

Personal finance is a broad and ever-changing field, with new information and strategies constantly emerging. By educating yourself and staying up-to-date with the latest developments, you can make informed decisions about how to manage your money and achieve your financial goals. Reading books, articles, and blogs about personal finance, listening to podcasts, and attending seminars and workshops are all great ways to learn more about money management.

Invest your money wisely.

It's also important to invest your money wisely. This includes investing in a diverse range of assets, such as stocks, bonds, real estate, and businesses. You should also educate yourself about investing and take calculated risks. When done correctly, investing can provide a significant boost to your wealth over time.

Eliminate debt – Important.

Another key to achieving financial freedom is to eliminate debt. Debt can be a significant obstacle to achieving financial freedom, as it requires you to use your income to pay interest and principal, rather than saving and investing. By paying off your debt, you'll be able to put more money towards saving and investing.

Surround yourself with supportive people.

The people around you can have a big impact on your financial success. If you surround yourself with people who are fiscally responsible and have similar financial goals, you're more likely to stay on track and achieve your own financial freedom. On the other hand, if you surround yourself with people who are constantly spending or have different financial values, you may be tempted to stray from your own financial plan. Surround yourself with people who can help you maintain your focus on achieving financial freedom.

Finally, it's important to remember that financial freedom is a journey, not a destination. It takes time, effort, and dedication to achieve, and even once you reach it, you'll need to continue to manage your finances to maintain it. Check out I&M Wealth Management Services. But with the right mindset, a budget, and a plan for generating passive income, you can achieve financial freedom and live the life you've always dreamed of.

By Omido Joshua

Kenya is currently experiencing a high rate of ‘inflation’ and the cost of living, goods and services, is rising quickly, believe it or not, much faster than our wages. The sudden sharp increase in the cost of basic needs like wheat flour, maize meal flour and cooking oil, just to mention a few, is creating daily unending conversation among Kenyans.

From many interactions on social media, you can tell that most Kenyans are increasingly worried that, at this rate of economic instability, their living standards will be highly impacted. We have not mentioned the distress created in the transport industry, a real headache, because of high fuel prices.

What is Kenya’s inflation rate?

According to trading economics April 2022 report, the annual inflation rate in Kenya has accelerated to a seven-month high of 6.47% in April of 2022, from 5.56% in the previous month. The main upward pressure being food & non-alcoholic beverages at (12.15%), wheat and basic goods, transportation at (6.88%), and thanks to another increase in fuel prices, housing & utilities at (5.47%).

These statistics create worry for the common mwananchi, but even so, these worries are justified. Inflation can have a negative impact on the quality of life, especially for those with lower incomes. However, we can make some adjustments in our choices like, how we budget, where we shop and where we choose to stash our savings, which can help you survive the effects of high inflation.

How to survive this inflation

High inflation Is clearly a cause of financial stress to many. It’s the high time for people to diversify by Increasing their monthly income to align It with current prices in order to survive the inflation, but that’s easier said than done for many reasons.

Here are some other ways to manage soaring costs if making extra money isn’t an option right now:

1. Focus on needs and reassess the wants

Start by determining your wants, (things you spend on but you can do without) from your needs, to ensure that only essential needs, (things you cannot do without and must spend on) are covered, like rent, groceries, transportation and utilities.

For many, this reassessment may result in pressing pause on wants like dining out, subscription services or gym memberships, etc.

2. Be wary of taking on new debts

Although some banks in Kenya reduced loan interest rates during the pandemic, these rates, increased post pandemic in Kenya, for this reason take on new debts sparingly, even if they have crazy low interest rates. New debts add to new constant monthly expenditure on your monthly budget which reduces your financial freedom during this inflation period.

You can also opt to consolidate the unpredictable high interest credit card loans into personal loans with fixed payment periods

3. Be a sale shopper

Talking about essentials, now is the time to get more serious about becoming a bargain hunter. This doesn’t mean you go crazy on coupon hunting, but rather pay more attention to discounts, offers, promo sales and allow them to guide you when you set out for shopping.

You can also opt for alternative free payment options for your day to day transactions. This will highly cut on transaction costs for common payments, that when accumulated, hit hard on your expenditure.

Check out how I&M On The Go facilitates transactions like paybill, sending money, bank to bank transfers and so much more that are FREE or have extremely low rates compared to other options

4. Maximize on loyalties and reward programs

This is the time to be on the lookout for shopping mall loyalty programs like the Carrefour My Club points, Naivas Card points and many more and convert them to cash before you go on that shopping spree.

Don’t forget about your best credit cards or best debit card rewards and points accumulated over time and redeem them for cash backs, travel discounts and more deals.

Check out some I&M Bank deals here

5. Invest your savings to get higher returns

We all know that time in the market beats timing the market. You don’t need to wait for the right time in order to begin investing for you to grow your income. From our best knowledge, you can invest your savings through the I&M Capital Limited and earn income in the most sure and secure way. This not only gives you a safe way of earning but also comes with professional advisories through the Wealth Management Advisory Services (WMAS) on below.

• Money market fund
• Offshore trading
• Lending against government bonds
• Client portfolio advisory

This is the moment where you not only need to save but also need smart and secure investments options that are beneficial directly to your financial security.

6. Look for alternative sources of income

This is easier said than done, but not impossible. When the pandemic hit, most Kenyans realized that over dependence on one source of income is a risky path because of the many uncertainties. It prompted many to look for more flexible alternatives for income and Online jobs played a huge role.

What are we saying, since we have cut back on the wants, we've got more free time on our hands, why not add an extra online job to compliment your daily job and save the difference in your earnings. Online jobs can be found on Upwork, Fiver, employment and many more

You can also opt in for affiliate programs like Jumia KOL & Amazon affiliates or referral programs that add you that extra income to help survive this tough times.

By Omido Joshua

The banking industry has faced the fastest transition, jumping head first into the unchartered waters of the digital world. Who would have thought that the Covid-19 pandemic would stream roll every aspect of life into embracing digital skills and services, but here we are now; much wiser and better as we horn in our skills to ensure that our bank throws that essential life line to our customers keeping them afloat in ever changing times.

Digital Banking Services

If someone had told you that in 2022 we would have almost phased out the busy bank halls and queues and embraced faster more efficient technology, you would not have believed it. Not every bad thing is bad for you. On the contrary, the challenges we have faced in the past 3 years have taught us to be resilient, adaptable and welcoming of the technology around us.

Mobile money, digital cards, electronic signature, secure online document wallets, free cash transfers and convenience, the last one rings true. We have moved with the changing times to ensure that our customers experience convenience in banking. One no longer needs to come to the bank for a meeting, not with many platforms offering online meetings, face time, chats and conference calls. The world is your oyster, you just have to define your ceiling to see it.

Is the world ready for this transformation?

The new normal is nothing like what we are used to. The sudden catastrophic events like the Covid-19 pandemic, sudden stock market crashes, the Russia-Ukraine war and generally political instability have created a heightened consumer demand for digital services. We live in a world where you can operate your life without leaving the comfort of your home and this must, one hundred percent be entirely facilitated by the banking industry. Good out of the bad? well this time, yes.

Technology, innovation and new ideas have been born and with that our customer numbers have grown while we work day and night to ensure that they are safe within our digital platforms. The switch to mobile and digital banking has become the single most embraced strategy since the beginning of modern banking, and much more awaits us ahead. No matter where you are around the globe, in lockdown, at home, on a hike so long as you have access to the internet and a mobile device, there are no limitations, you can access your financial services at the click of a button.

Have we mentioned authorizing transactions by facial recognition and fingerprint scanners? Digital banking is here to stay, what we need to do is research and innovate to protect our customers as we navigate through this journey together.

I&M and the Digital Frontier

I&M has launched an extensive shift to digital services aimed at making our clients lives easy. What’s better than your own personal online banking platform, 24-hour online teller support, online loans access and repayments and most of all our best and trusted Global credit and debit Cards?

The uncertainty in the current times requires an excellent partner and I&M is determined to walk with you every step of the way through innovation, research and development until we are in sync with all our customer needs.

Digitizing essential Services (I&M On The Go)

Providing online banking for fast, accurate and easy service delivery, easy mobile payments, access to loans that allow people to access bank services from anywhere. We do not have to run into the bank and fill excessive paperwork for anything as it's all in one package, the I&M On The Go mobile App and Web, where you can carry out bank transactions from the comfort of your house.

Introduction of the new I&M Debit and Credit Mastercard

If Covid, wars and sudden disasters have taught us anything, it’s the power of an excellent bank card that’s global and easy to access. With 24-hour online customer care, we are able to authorize payments, transfer and even give access to urgent finances where needed. You have it all in your hands wherever you go. I haven’t even mentioned the benefits of using these cards. I&M bank offers some of the best debit, prepaid and credit cards that are widely accepted in Kenya and beyond.

We create financial solutions with our customers’ needs in mind. Trust us as we navigate this digital journey together, because we are on your side.

By Omido Joshua

Saving money for a rainy day is a necessary practice that most people know they should, yet they find it hard to do. Sometimes the hardest thing about saving money is just getting started. Today I have a step-by-step guide that can help you develop a simple and realistic strategy, so that you can save for all your short- and long-term goals.

Record your expenses

The first step to start saving money is figuring out how much you spend. Keep track of all your expenses—that means every coffee, household item and cash tip as well as regular monthly bills. Record your expenses whichever way that you find easy to do. Grab a pencil and paper, a simple spreadsheet or a free online spending tracker or app. Once you have your data, organize the numbers by categories, such as gas, groceries and mortgage, and total each amount. Use your bank statements to make sure you’ve included everything.

Include saving in your budget

Now that you know what you spend in a month, you can begin to create a budget. Your budget should show what your expenses are relative to your income, so that you can plan your spending and limit overspending. Be sure to factor in expenses that occur regularly but not every month, such as car maintenance. Include a savings category in your budget and aim to save an amount that initially feels comfortable to you. Plan on eventually increasing your savings by up to 15 to 20 percent of your income.

Find ways to cut spending

If you can’t save as much as you’d like, it might be time to cut back on expenses. Identify nonessentials, such as entertainment and dining out, that you can spend less on. Look for ways to save on your fixed monthly expenses, such as entertainment or cell phone plan, as well. Other ideas for trimming everyday expenses include:

1. Search for free activities: Use resources, such as community event listings, to find free or low-cost entertainment.
2. Review recurring charges: Cancel subscriptions and memberships you don’t use—especially if they renew automatically.
3. Examine the cost of eating out vs. cooking at home: Plan to eat most of your meals at home, and research local restaurant deals for nights that you want to treat yourself.
4. Wait before you buy: When tempted by a nonessential purchase, wait a few days. You may realize the item was something you wanted rather than needed—and you can develop a plan to save for it.

Set savings goals

One of the best ways to save money is to set a goal. Start by thinking about what you might want to save for—both in the short term (one to three years) and the long term (four or more years). Then estimate how much money you’ll need and how long it might take you to save it.

Determine your financial priorities

After your expenses and income, your goals are likely to have the biggest impact on how you allocate your savings. For example, if you know you’re going to need to replace your car in the near future, you could start putting away money for one now. But be sure to remember long-term goals—it’s important that planning for retirement doesn’t take a back seat to shorter-term needs. Learning how to prioritise your savings goals can give you a clear idea of how to allocate your savings.

As I conclude, review your budget and check your progress every month. That will help you not only stick to your personal savings plan, but also identify and fix problems quickly. Understanding how to save money may even inspire you to find more ways to save and hit your goals faster.

Yours faithfully

IMBA

Howdy, how are you and how have you been holding up? Myself I am great. Today I am excited because the message I have for you is a little bit different from the usual. It is not only celebrating certain people but also, encouraging our women to Break The Bias and our men to give them the necessary support they need to stay winning. International Women’s Month.

International Women's Month offers an opportunity to reflect on progress made, to call for change and to celebrate acts of courage and determination by ordinary women who have played an extraordinary role in the history of their homes, organizations, countries and communities.

This year’s theme is #BreakTheBias!! And it focuses on gender equality today for a better tomorrow. This helps start bold conversations and actions to help forge positive change for women and men!

In line with I&M Bank’s Brand Promise - We are on your side! We understand the importance of having a healthy and capable workforce where everyone is celebrated and valued regardless of their gender. In the spirit of togetherness and in an effort to celebrate women this year, while educating ourselves on gender equality to #BreakTheBias, we would like to focus on equality in the work place. Here are some of our staff’s thoughts and on gender equality for a better tomorrow and how we can #breakthebias to ensure women continue to thrive.

Ruma Shah | I&M Bank Group Chief Audit Executive

Zipporah Gitau | I&M Bank Group Chief Risk Officer

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Maureen Wasike | I&M Bank Manager - Alternate Banking Channels

Reila Islam | I&M Bank Malindi Branch Manage

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Patricia Wabwire | I&M Bank Kisii Branch Operations Manager

Pinky Pravin | I&M Bank Bancassurance Operations

Verrah Kwamboka | I&M Bank Kisii Customer Service

I can’t add anything to what these exceptional women have stated. They have said it all. Let us join our hands together and advocate for gender equality because collectively we can all #BreakTheBias and ensure the women in our lives #StayWinning

Your bank buddy

IMBA

We Are On Your Side

Year in, year out, we set new year resolutions but do we really follow them through to fruition? Did you set new resolutions and goals this year? Did you know that according to the Statistic Brain Research Institute, only 9.2% of all people ever feel that they are successful in achieving their New Year’s resolution? Is it necessary to set them in the first place? Well, we will leave that for you to decide. Say for instance you are planning to purchase your dream home and car or go on vacation, what are some of the things that you can do to ensure that happens? Your resolution here for instance is to increase your number of clients for your business or side hustle within a realistic timeline in order to get that extra money that will help you achieve the set goal. This said, your goals should be SMART (Specific, Measurable, Achievable, Realistic and Time-bound.

A widely quoted statistic showed 80% of people give up on their resolutions by the second week in February. Why is this the case? Why do new year resolutions fail?

• Loss of focus – Say for instance you are planning to lose some weight and somewhere along the way you stop working out. Chances are, you won’t achieve that weight loss. It is therefore important to stick to a routine or quantifiable step towards reaching that objective.
• Lack of an accountability partner – You can identify a mentor or a supportive friend to help you keep track of every stage of achieving your objective.
• Lack of SMART goals – if your goals are not specific enough, it is hard to keep track of them or identify the next steps towards achieving your goals
• State of mind – without a mindset shift, it is hard to change your behavior. Your consciousness will always be your biggest drive.
• Fear of the unknown – perhaps you are subconsciously procrastinating because you are afraid to succeed because you believe that it brings more burden. An article by Forbes describes it as “Feeling Fundamentally Flawed - The biggest and most widely-shared fear is that many of us feel there is something fundamentally wrong with us and that we’re undeserving of great success and happiness. This fear causes us to hold ourselves back from fulfilling our ultimate potential because we feel we inherently don’t deserve it.” 

Now that we know the ‘why’, let’s get to the ‘how’ to turn your goals and resolutions into success:

Make a detailed plan that clearly indicates every step or stage of your goals and set a deadline on when you are most likely to have reached your objective. This will not only keep you focused but you will be able to identify/overcome the obstacles or setbacks ahead.

Learn from your past mistakes. Take some time to reflect on the things that prevented you from succeeding in your previous goals and resolutions. Take note and forge a way forward into a more positive habit. This way, you will avoid repeating the same mistakes again.

Don’t give up. Keep that burning desire to succeed. Keep your head up high and focus on the end goal. Whenever you feel like giving up, imagine where you want to be and remember the sole reason and purpose that you are seeking that success. Change is a process, it takes time. Be patient with yourself and remember that success is a journey, not a destination.

Visualize the goal. Imagine that you achieved that success that you desire. What does it look like? Now that you have that clear picture, take actionable and SMART steps to ensure that you get to where you want to be.  Visualize your success, then take action! Visualizing simply makes you understand and know when you have reached your goal. If you can visualize it, if you can dream it, there's some way to do it. _ Walt Disney

Make SMART goals. As indicated earlier, saying that you want to buy an item is not enough. You have to make a plan that is not only achievable but realistic and achievable within the set time frame. You create a saving plan that works best for you and eliminate habits that hinder you from achieving your desired outcome. In case your goal is to change your habits, for instance eating healthier, you can write up a meal plan and identify triggers that make you eat unhealthy foods and counter them accordingly. If you are planning to shed a few kilos, you can make a fitness and diet plan that works best for you and one that will help you lose that excess weight within a realistic time frame.

 We hope that this year will be your best and that you will achieve all the success you desire!

We are on your side!

Saving money during festive seasons doesn’t necessarily mean that you will miss out on all the fun things that you love to do. It simply means being in control of your expenditure. You work so hard and you serve a little indulgence. You can still enjoy seasonal holidays while still making wise financial decisions.

So, what are some of the ways you can save money during the festivities? Here are a few:

Take advantage of discounts available – Businesses are always offering discounts at certain times of the year. You can take full advantage of discount offerings such as Black Friday deals to make purchases ahead. Get the best deals with I&M Bank partnering merchants here https://bit.ly/3EtUJIF. Another way around this is to utilize promotional discounts, coupons and reward points accrued over the year to pay for items or services. A penny saved is a penny earned – Benjamin Franklin

Plan your budget – Make a shopping list of items that you will need and stick to it. This will help you avoid impulse purchases that may hurt your wallet. Setting a budget will help you set a spending limit as well. You can also save by setting money aside every month towards your goal.

Make purchases in advance - Say, for instance, you are planning to travel during the Christmas holiday - You will save quite a significant amount of money by booking your tickets and vacation in advance. If you are planning to buy presents for your friends and loved ones, you can also buy them in advance before the prices hike as they do during festive seasons.

Start a side hustle or business that will generate more income for you. You can sell seasonal products and services such as Personalized cards, home décor items, etc. Seasonal sales are a great way to get that extra money that you can spend during the festivities.

We hope that you will enjoy the festive season and that the tips will help you make better financial decisions. We wish you a merry Christmas and a happy new year!

We are on your side!

You have probably gotten disappointed or frustrated while purchasing a product or service. We bet the unpleasant experience probably left a bad taste in your mouth. You have also experienced a seamless purchase experience that we bet left a lasting impression. Now, let us reflect on the two experiences. One experience was quite frustrating – would you consider purchasing from them again or would you rather switch to their competition? The other experience was quite pleasant - would you be willing to pay a higher price to receive the same premium customer service experience? Some food for thought right there.

In today’s world, the customer is king or queen. Customer experience (CX) is a very fundamental component of any business. It is the overall perception customers have with regards to the impression or experience they have encountered with your business or brand. The aspects can make or break your business. CX focuses on the relationship between clients and businesses as a whole. This relationship is defined by interactions and experiences throughout the customer journey. It is, therefore, also the foundation of loyalty and customer retention.

Brands must focus on improving customer experience as the expectations change. Here are some interesting reasons why:
62% of customers are willing to pay more for good customer service. (2020 Achieving Customer Amazement Study)
According to Shep Hyken’s 2020 Achieving Customer Amazement Study, Did you know that 96% of customers will leave a brand for poor service?
About 84% of consumers have stopped doing business with a brand due to a poor customer experience. (Conversocial The State of Customer Experience 2020 Report)

So, what does a great customer experience look like? You will notice:
An Increase in happy and repeat customers – Repeat purchase of your product/service offering
Speedy delivery of product/service within the set SLA (service-level agreement)
An Increase in the number of referrals - Willingness of a customer to advocate for your brand
Reduced level of churn rate - Customers are satisfied with your product/service offering
Consistent demand of your product/service – a stream of loyal customers
Increase in positive sentiments – Customers love your brand offering and customer service
A sense of brand ownership by staff and customers
Sustainable growth and a clear competitive advantage

The competition for alternative goods is quite is stiff. Customer experience has proven to be a major differentiator in today’s business environment especially in the presence of me-too type of businesses (businesses selling very similar products or services). There are major notable trends in customer experience in our era such as:

Cyber Security – Technology risks are rapidly arising. As a business, this is the practice of protecting customer information by mitigating information risks, anticipating cyber-related risks and responding appropriately when they do
Customer satisfaction surveys – an omnichannel collection of feedback
Automation of processes. e.g. optimized points of self-service, customer service bots, etc.
Rise of personalized or specially packaged messages, products and services
Increased customer engagement and retention programs
Speed, convenience and friendliness through technology while maintaining the human element

As a business or brand, Experience is everything. So, what can you do to win clients with a great customer experience?

Embrace customer feedback – implement feedback collected from (NPS) Net Promoter Score Questionnaires and customer satisfaction surveys
Improve products and services to wow customers
Proactively understand and train customer-facing employees on best practices
Utilize CRM customer data and analytics to cross-sell, match their needs or provide personalized product/service offerings that best suit or anticipate their lifestyle and needs
Exceed your customers’ expectations. Offer speedy delivery via smart automation and actionable insights — across private messaging omnichannel.
Add a human touch element to your service automation. It can be something like a simple greeting or friendly automated process or answer
Keep your delivery promise as stated in your service charter
Offer after-sale services that will encourage repeat purchase and customer retention
Offer a cashback, loyalty or affiliate program that rewards the customer for taking a service or referring clients to the business

Happy customers are the main ingredients of company success. Give customers great experiences and they will buy more from your business and even refer their family and friends.

No matter what, We Are On Your Side!

Howdy, hope you’ve been well. Personally, I have been good, I can’t complain

Most of us, have social media accounts and use various platforms present to communicate, share, entertain, learn, seek resolution to our queries plus so much more. Over the years, social media has grown from just being a platform for us to connect and engage with friends and family into one that brands can use to connect and engage with its audience.

As we speak, most businesses regardless of size have a presence on social media. While your brand being on social media has its advantages, it can also be the pin the bursts your brand’s bubble. When all hell breaks loose and people are attacking your brand on social media, what are you supposed to do?

Today I would like to share with you the 3 key pillars of managing social media crisis

Halt normalcy

Start by halting all scheduled posts prior to the crisis. This way your brand doesn’t come off to the public as arrogant or playing pretend. Continuing with scheduled post is as good as giving a gun to your enemy to shoot you. This is because trolls will use your posts to leave provocative comments.

Acknowledgement

Acknowledge the issue but don’t commit to responding to questions yet. You can do this in form of a post. Whether you disagree with the allegations or you are not sure of the facts pertaining to the issue, you can always let the general public know that yes you are aware of abc… but the issue is under investigation and you’ll keep them posted once the facts are clear.

Communicate

After you’ve gathered all the facts internally in relation to the issue and have agreed on the response you want to give your audience, you can start responding to questions. Use visuals and graphics along with words to signal a change in standard operating procedure. As you respond to individual comments, give definitive responses, that way you protect yourself from a never-ending tit for tat conversation with one person yet your comment section and DMs are overflowing. Don’t forget to loop in your staff managing other communication outlets so that in case a customer asks, they are in a position to answer with the right information

Once the storm is over, you can now resume business as usual on your social media pages. Just like any other form of crisis, remember to keep calm and try not to panic. Bad press on social media can spread like wildfire but hey, that’s when your crisis communication plan comes in.

These are just but a few red flags indicative of fraud that a merchant should pay attention to. Remember that as you It’s always a pleasure touching base with you, till next time. Adios!

Yours faithfully

IMBA

Howdy, it’s been a minute but I hope you are holding up well. Hope the year has taken an upward trajectory so far in terms of your goals and plans for the year. If there is one thing the last 12 months has taught us is the power of an effective business strategy. Have you ever wondered why some companies just seem to be as solid as a rock? Whatever tide hits they never seem shaken and if they do shake a little, they never topple. Well, that’s the power of a well-executed, sound and solid business strategy. Having a killer business idea is great, but the execution is everything. For you to execute well you’ll need to strategize how to achieve your desired goal with what’s currently at hand. Your strategy should include your company's goals and objectives, the type of products/services that you plan to build, the customers who you want to sell to and the markets that you serve to make profits. Your strategy however graduates from just a strategy to a solid strategy when all the assumptions you make at the time of its creation have been validated and tested for accuracy, and the decisions you've made can be backed with clear facts and evidence. A good business strategy will guide you when it comes to making investment decisions, prioritizing activities within your organization and allocating and optimizing resources to generate above-average returns. So how do you develop a business strategy? Your strategy should be long-term and realistic. Having in mind the type of product/service you’d like to build, factor in who your customers will be, the markets you would like to serve and the activities you’ll need to do to get your business to the desired future state. Carefully analyse the possible opportunities for growth as well as diagnose the risks and challenges anticipated. Come up with a mitigation plan to address your anticipated risks. Take your time to gather facts and data you require before finalizing. Be innovative and ensure your products or service have a unique point of sale and are in alignment with your business’s core objective. Factor in competition. Your business can offer a solution to a market that is not served or underserved. If you choose to go with an already flooded market, then what you offer must be unique enough to pull the customers your way. While at it, position your company well in the marketplace to make it harder for new entrants. Economies of scale. Be innovative in the cheapest way possible. Offer unique feature and back them up with excellent customer service. Periodically review and update your business strategy to ensure it's valid and has factored in new changes. Once the strategy is finalized, share it with the relevant stakeholders. That way everyone is aware of the direction the organization is taking and the role they need to play to help the company achieve its goals. Once your strategy is in place, let it guide everything your organization does. Having a remarkable strategy is just the theoretical bit, executing it successfully is the practical bit that matters. Till next time, ciao! Your bank buddy IMBA We Are On Your Side

If there is one thing you can never get enough of; it’s investment advice. There are many factors that you need to think in-depth and consider before making that investment decision. Truth be told, investment opportunities can go two ways: you either end up fulfilled or devastated. Think about the get-rich-quick schemes that you have heard of or experienced in your lifetime. Have you ever fallen victim to such scams? If yes, when you look back, did you sense that gut feeling not to proceed or do due diligence but you still went ahead and invested your hard-earned money? Sorry for your loss. We have all lost money in one way or another, if you haven’t yet, take the pointers we will talk about here. Investment strategy One principle question you should always ask yourself whenever you have an investment decision to make is; what is my motivation? Establish a motive, create a sensible investment plan and follow through with it. Some of the reasons could be to: Start or expand your business Create funds to build a dream home Build generational wealth Create funds for retirement Create a pool of accessible emergency funds or savings Make charitable donations Research and due diligence Let logic as opposed to emotions guide you in making that decision, and, confirm the accuracy of the information and investment value before committing. Research into regulations surrounding a product including taxation, charges, past performance, management of a company, and future strategy. Keep yourself updated with current affairs to ensure that you do not miss out on opportunities to leverage on an investment. Risk appetite. What is your risk appetite? Are you risk-tolerant (willing to take high risk for high returns?) or risk-averse (reluctant to take high risks/ prefer average returns with low risks)? We are living in changing times where the financial markets are ever-changing and controlled among other things by governments, speculation, demand vs supply, inflation, international transactions, and even recently global pandemics as we have witnessed. Ensure to weigh the risks relative to the costs, duration, and returns on the investment. Opportunity cost. Let me shed some light on this. Imagine your friends have been talking about taking an exquisite vacation to Lamu. Are you willing to give it up because you heard about this lucrative piece of land that has just been offered at a discounted price and the amount could go into buying the land? Now, the opportunity cost of buying the piece of land instead of taking the vacation is the cost of the vacation. This brings us to the question; could you be missing out on alternative investment options while sticking to the current ones that may not be as progressive? Time and time value of money Time is always of the essence when it comes to investment. How long are you willing to lock up your investment to make your target or desired goal in the short or long-term? Investments should also be able to mimic your ideal portfolio and timeline. The value of money erodes with the passing of time, ensure that your investment is earning a return and of course within reasonable limits and risk. Also, the earlier you start investing, the more you reap and the better it is for you to be able to compound your earnings. Investment capital. There is no gainsaying that this determines your choice of investment. However, this does not mean that you should limit yourself e.g. those with low investment capital may look at collective investment schemes e.g. Unit Trusts, Chamas (investment groups), etc to invest in securities where the minimum investment amount might be limiting to individuals. Nowadays you can also take advantage of financial help and offerings such as loans, letters of credit, trade finance, asset finance, and many more options. Take your time to understand the terms, conditions, and risks involved as well. Always make informed decisions. You can always seek professional assistance where necessitated. Remember, “An investment in knowledge pays the best interest.” ~Benjamin Franklin. You can now confidently walk into February ready to make an informed decision to invest in that business or opportunity. All the best! We are on your side!

Hey, hope your well. From my end all has been well… Last week as I was making a purchase online, It occurred to me how e-commerce sites make purchasing products so easy and convenient yet they can also be a gateway to fraud.

Come to think of it, there has been a lot of public awareness and sensitization on how to protect oneself from cybercriminals. However, the question is, when it comes to online shopping, what can ecommerce merchants do to protect their customers from fraudsters? In as much as e-commerce sites have multiple security features on their sites, some of the red flags to watch out for include:

- Multiple declined transactions, especially in cases where the user keeps on entering the wrong card details or there are insufficient funds… It may be common for a customer to enter wrong card details once or twice but anything more than that should raise eyebrows.

- Multiple orders from multiple credit cards from the same user within a short period of time.

- Multiple shipping addresses. The buyer makes multiple purchases under the same billing address but ships products to multiple destinations. A merchant can seek authentication from such a shopper just to be sure that this is not a fraudulent activity.

- Large orders from a new country/ location: From your previous data you’ve never received site visits or purchases from a particular country then all of a sudden there is a string of orders from that country. Do a careful assessment before you allow the purchase process to continue.

- Multiple orders originating from multiple geographic locations and different IP addresses within a short period of time. E.g. a customer always makes a purchase from Nairobi from a specific IP address but you notice a purchase origination from Mombasa from a different IP address.

- Transaction value outside of a customer’s profile. For instance, customer who on average spends Ksh 50,000 on his purchase then all of a sudden makes a purchase order of ksh 700,000 should be considered suspicious.

- Inaccurate data: You may find the customer’s email address doesn’t match the IP address or the zip code doesn’t match the country.

- Multiple transaction over short period of time. A customer making back to back purchases in a day or two should be treated with suspicion. The merchant should contact the buyer just to ascertain that the purchases are indeed legit.

These are just but a few red flags indicative of fraud that a merchant should pay attention to. Remember that as you enhance your site’s security features, cybercrime is also evolving. Therefore, always be on the lookout for such suspicious activity and where necessary put in place mitigating controls. These may include withholding suspicious purchases and additional identity verification of customers via one-time passwords to the customer’s registered contact information.

As I conclude, fraudsters prey on loopholes to make their kill. #KaaChonjo and help protect your customers from cybercriminals.

Yours faithfully

IMBA

Let’s just start this particular blog by acknowledging that, since the onset of the pandemic in 2020, the crisis presented a mixture of experiences both to individuals and businesses. While the crisis availed different opportunities to some, the greater impact hasn’t been easy on businesses and households. We have witnessed businesses shutting down their operations and, adapting new survival strategies while hanging onto their last straw of working capital. Globally, businesses have had to resort to innovative ideas to survive the current environment. Some of the key forward-looking strategies businesses have to consider for survival are: Health and safety of the resources Scaling down the workforce to comply with prescribed protective protocols Adapting new strategies like remote working, shifts where applicable, salary cut, redundancy, etc. Business optimization- closing some units/departments or total closure. Cost-cutting mechanisms also naturally applied At the macro level, economies have to cope with unprecedented realities affecting the business environment. This has resulted in businesses going back to the drawing board for survival options. MSME businesses have been known to drive stable and resilient economies all over the world where sound enabling environments have been put in place. MSME has become a regularly used acronym for Micro, Small, and Medium Enterprise and informs our discussion. According to an article by Phyllis Wakiaga, CEO of Kenya Association of Manufacturers and the UN Global Compact Network Representative for Kenya, Kenya’s Micro, Small and Medium Enterprises (MSMEs) contribute approximately 40% of the GDP with the majority falling in the informal sector. This informs the deliberate forward-looking effort and mechanisms that I&M Bank has put in place for a successful scale-up of MSMEs in the country. In a bid to support financial inclusion for MSMEs, I&M bank has introduced an all-weather dynamic approach in walking the journey with MSME customers for superior customer experience with a profound business resilience. Below are some of the offerings for MSMEs: A warm relationship with customized business advisory Bundled flexible Working capital solutions up to Kes.3Million with a competitive TAT (short-term loans, temporary overdrafts, LPO & Invoice discounting facilities, etc.) State of art alternative banking experience- Swift Mobile and Internet Banking Attractive current account benefits Quick Unsecured bid bonds As we all navigate through these turbulent times, we assure the MSME customers that we deeply understand their plight and walk with them through this journey. WE encourage them to take full advantage of our available solutions because we are on your side!

Howdy, it’s been a minute but it is always lovely to catch up with you. This rainy weather has me on sweaters and hot chocolate most of the time…Hope you are keeping warm though. Today I want us to have a chat on cybersecurity. I know you’ve heard that word a number of times but are you cyber secure, especially at a time like this where we are heavily relying on the internet for most of our transactions? What’s the worst that can happen if you are not cyber secure? Well, a lot can happen. For instance, if your personal data is breached, all your private information becomes public. A hacker might be able to access your banking information or steal your identity. For businesses, breach of data can lead to loss of revenue or having to spend money on legal fees, PR, or insurance costs just to deal with the situation. So how do you ensure you are cyber secure? Start by making sure all your operating systems and applications are up to date. This helps eliminate vulnerabilities that hackers may use to access your device. You can do this by simply: Making sure your web browser plugin like Adobe Flash, Java, etc. are updated Make sure you set your web browser to update automatically Turn on automatic updates on all your devices. Use strong passwords and protect your passwords. Use passwords that are not so obvious and easy for someone to guess. A combination of characters, numeric and special characters is advisable. Avoid leaving hints of passwords and use a password management tool to help you manage your passwords. This tool works by keeping all your passwords in one place and giving you a “master key” password that can unlock the rest. This way you don’t have to write down your password or struggle to remember. Use multi-factor authentication. This will simply add a layer of protection to your password. With Multi-factor authentication, after entering your password you’ll be prompted to enter an additional code, another password, or your fingerprint. Be on the lookout for phishing. Scammers may pose as someone you are familiar with and trick you into opening malicious links that may divulge important credentials or infect your device with a virus. Avoid using your debit cards for online billing. This is because debit cards are linked to your bank accounts and fraudulent sites can use this channel to syphon money from your account. I recommend you use a prepaid card for online payments and subscriptions. Need one? Click here and make your pick! These are just a few tips on how you can secure yourself online. There are many channels fraudsters can use to steal from you. Be proactive and always learn more about how you can secure yourself online. With that said, if you ever suspect any fraudulent activity in any of your I&M Bank accounts, immediately call us on 020 322 1000 or email us at [email protected] and we will immediately assist you. With that said, ciao, till next time! Your bank buddy IMBA We Are On Your Side

It gives us great pleasure to be on this new and exciting journey as we unveil a new brand identity for I&M Bank on all our digital channels.

This new digital brand identity is OUR CUSTOMERS CHOICE! We asked our customers a few months back for their valued opinion on how the future I&M Bank brand should look like and it was their majority preference that prevailed in our choice of how the digital I&M Bank logo would look like. We appreciate our customers for caring about I&M Bank.

So why are we refreshing our digital look? The I&M Group has over the years achieved many milestones all aimed at fulfilling our purpose To be partners of growth for all our stakeholders – customers, shareholders, employees and the community.

We have grown our footprint in 4 countries (Rwanda, Mauritius, Tanzania and Kenya) and are now planning our expansion into Uganda. Through the Bank’s digital innovation engine, we have delivered and will continue to add on market-driven solutions and robust IT systems geared to giving you a seamless banking experience as you interact with our technology-driven products and services. In addition, last year, the Bank was ranked as a Tier 1 or Large category bank which is humbly attributed to your continued belief in us and our solutions.

As the Bank continues its growth trajectory and while we appreciate the strength of the I&M brand as it stands currently, we feel that it is time to change our brand look to embody the growth that we have achieved over the years and the vibrant progressive future that we aspire to grow towards.

We are therefore now changing the I&M Bank logo and brand colours to a more vibrant look on different digital facets of the brand, which we believe will continue to build the Bank’s brand value.

This new look will now be applied on all our digital platforms i.e. website, social media pages, ATMs, mobile and internet banking. We will gradually extend this new logo and brand colours to our branches in the coming year.

The new brand visual identity, is an evolution of the old logo that draws inspiration from a DNA strand. This signifies a seamless transformation of the old I&M logo, to represent the stability of the I&M Group in spite of change in perspective and growth over time. Through this new look, we would like to reaffirm our commitment to be your financial growth partner driven by our brand promise to you – We are on your side. This new identity will help us live through the Bank’s values namely: Mutual Trust, Innovation and Fairness, that form the pillars to meeting your financial and lifestyle requirements.

Our new brand identity also underlines the Bank’s continued focus on customer centricity and we would like to reassure our customers that we shall continue to service them with utmost professionalism, through delivery of consistent and reliable levels of customer service and delivery of innovative market-driven solutions. We therefore hope that even with this new identity, our customers shall continue to build your loyalty and trust in the Bank and its financial solutions.

We do not take our customers support for granted and continually strive to be worthy of the trust bestowed on us to be their financial growth partner.

According to the 1,000 Day Survival Guide For Startups – Courtesy of Sanjay Mehta, If a startup is able to survive for 1000 days, then it is built to last. Now that your business has survived beyond the 1000 grey days, what next? For most of us, the epitome of the current pandemic has definitely changed the game for business models. Getting the right set of customers, investors, and other fundamental stakeholders that keep the business income flowing has not come without challenges. If this was the year you decided to set up a business because you heard your peers mention the famous Kenyan quote, Biashara ina pesa, then think again. Don’t get us wrong, we aren’t asking you to retract but rather assess your business model for long-term survival and health.

That said, let us look at financial health in this context. This refers to the dimensions of the monetary affair of a business - determined by:

• Profitability - the ability to yield profits
• Liquidity – the ability to convert assets into cash while retaining their intrinsic value
• Solvency – ability to finance debts and financial obligations in the long term
• Operating efficiency – ability to deliver products/services cost-effectively

So, what are the measures of business financial health? The fact remains, there is no sure way to determine a business’s financial health. However, there are significant indicators of strength or vulnerability. These are profitability and liquidity.

So many businesses have failed or stagnated, including those, we previously considered to be giants. One of the main causes of business failure that we have witnessed is a change in economies, whereby the economic environment influences purchasing habits, therefore, affecting supply and demand. We are currently witnessing the dynamic effects of COVID-19 uncertainties in the economic system owing to imposed lockdowns and curfew in a bid to control the spread of COVID-19. All is not lost and we have to find ways to adapt to the current economic environment and lead even at the edge of chaos.

We would, therefore, encourage you to assess the competitive ability to generate profits for your business as you strategize your new model. This will help you identify the balance of power, attractiveness, and profitability of your business in the market place. A great way to do so is using Porter’s 5 forces of competitive analysis to determine the following forces:

• Threats of new entry - how easy it is to enter your market and threaten the current position of your business, as well as a number of barriers to entry
• The threat of substitution - how easy it is to replace your current products/services.
• Bargaining power of suppliers - where supplies are controlled by a few players in the market place
• Bargaining power of buyers- where few buyers control a large percentage of the volume market
• Competitive rivalries - the intensity of competition in the industry

This said, what can you do to safeguard or improve the financial health of your business? If anything, prevent business failure?

• Monitor the cash flow of your business - never underestimate the power of cashflow
• Review your non-performing assets
• Measure your financial performance – Return on Equity (ROE)
• Instill the culture of accountability/transparency in undertakings
• Provide customer-centric products and services
• Take stock of your value chains, lifetime value of customers, churn rates, net promoter score, and sales pipelines
• Learn from your competition
• Get business insurance to minimize financial losses in the event of diverse risks
• Create a Continuous Improvement Plan - Plan, Do, Check, Act – continuously study and learn from current efforts to improve future outcomes

 Why, therefore, is it important to monitor your business’s financial health?

• It is a crucial and cautionary step to prevent business failure
• It helps you make informed short- and long-term decisions to drive the business forward
• When you know your business inside and out, only then can you position it for success
• It plays a vital role when making timely growth plans
• Tracking Financial health transforms a culture of innovation and transparency amongst teams.
• It eliminates unwanted and unjustified overhead costs
• It helps to evaluate asset quality
• It clearly reveals vital indicators of the performance of the business – These details are very important for shareholders.
• It is an indication of good business compliance with the set laws in the nation

As we end this blog, we would like to leave you with some food for thought. Would you rather be the biggest or the best in your industry? We task you to marinate on that.

Your bank buddy

IMBA

We Are On Your Side!

Hey, it’s been a minute but it’s always my pleasure to interact with you. Hope you’ve been well, personally I am better now than I was months ago. I bet every business man can now afford a small sigh of relief. When a business man tells you things have been thick, trust me they have been thicker than type K copper pipe… Don’t ask me how I know about copper pipes, I bet I have been subconsciously learning from my engineer friends. Lavington

They say every mess carries with it a message and COVID-19’s message has been loud and clear. Most business people had certain measures, policies and procedures put in place in case of a crisis but what they hadn’t factored in is a pandemic. Especially one that minimizes human interaction, is deadly and can be contracted in a blink of an eye. “Factor in a virtual working plan for your business”…That was COVID-19’s message to most businesses.

I believe most business owners have learned their lesson from the University of Life… Of course no one gets a certificate from that university, experience suffices and with that, I’ll share with you few tips on how to cushion your business against a pandemic or crisis.

For starters, be as transparent as possible with your employees and customers. Without these two sets of people you won’t have a business to run. Your customers need to understand why there is a change in operation, for example if they used to come to your store to shop, but you want to stop physical shopping and adopt online shopping, you need to communicate prior so that they understand why the need to change, for how long that will be etc. This will make them feel you care about them. Your employees also need to have clarity of the situation and you can seek their opinion where possible on how to mitigate certain challenges.

Same way human beings need healthy blood flow in their bodies to operate is the same way businesses need healthy cash flow to stay afloat. Protect your cash flow as much as you can. Reduce cost and minimize expenses where you can to ensure the rate at which money is coming in balances with the rate at which money is going out.

Go digital and be virtual if your nature of business can allow. Instead of paying office rent, your employees can work from home. Instead of having a gigantic retail store you can scale down and branch into ecommerce…The beauty of going digital is that it saves you some coins and allows you to reach a wider customer base.

Last but not least, guess work is the recipe for disaster! Have a proper business continuity plan. This mostly goes out to medium and small businesses. They are the ones often guilty of operating by faith and not having a business crisis management or continuity plan. Have clear set procedure on what needs to be done when there is a crisis and how to resume once the dust settles.

As the country opens up, not all businesses will resume, some died during the pandemic, others are on their death beads while others are heavily panting after a vigorous fight with the challenges the pandemic brought their way. For those who made it the other side props to you! For those who didn’t make it or are struggling, it’s not a loss. Your business might not have made it but your business management skills have been sharpened. They say nothing beats experience, out of it you learn and strategize better.

Before I call it a wrap, you can check out these business solutions https://bit.ly/36KqIa0 The E-commerce service came through for my buddy big time when he decided to go digital with his business. With that said, thank you for reading, catch you later!

Your bank buddy

IMBA

We Are On Your Side

As we dive into this new month of September, let us delve into the impacts of COVID-19 on the global financial system. For many of us, it has been a pretty long 6 months of uncertainty. As the pandemic continues to play out, we cannot fail to point out how our lives and the economy at large have changed. Just like other countries in the world, Kenya has faced its own share of economic downturns owing to the COVID-19 pandemic. The disruption has immensely struck businesses’ supply chains most especially industries such as Hospitality, Education, among others – leading to a major economic disruption.

According to a press release by World Bank in April, Kenya’s gross domestic product (GDP) is projected to decelerate substantially in 2020 due to the negative impact of the COVID-19 (coronavirus) pandemic. This is inevitable following the shift of focus to strengthen the healthcare system first as well as Fiscal measures taken by the Central Bank of Kenya to mitigate the situation such as easing Bank lending. Despite the provision of the stimulus packages, a reduction of economic activity in the country owing to lockdown has led to poor purchasing power and as a result, has slowed down the Kenyan economy.

Some of the common impacts we have witnessed so far are:

• Productivity is perceived to drop since some companies are unable to access government support.
• Downturn in the respective markets
• Reduced global economic output

On a global outlook, the grass is not looking any greener either. The US economy for instance is faced with deteriorating infrastructure, disruption of financial markets, induced market instability, wage stagnation, mass unemployment, mass eviction crisis and lock downs.

The coronavirus pandemic slapped the Spain economy quite an unprecedented blow.

It was one that they never saw coming since this financial crisis intensity can be described as no other, given the uncertainties. The Italian economy has sank owing to the economic costs of containing the pandemic – Lockdown. The cessation measures were just lifted recently in mid-June, longer when compared to other countries, meaning that the first half of the year saw a harsh reality - an economic deterioration owing to the strict restrictions.

 Italy, being among the most affected countries with the COVID-19 outbreak, is facing a pang of devastating impacts to its economy. As a matter of fact, the Bank of Italy said it expects GDP to fall by 9.2%. As per the International Trade Administration (ITA), Italy's third-largest destinations for exports is the US. Now, as per a research by Globe Newswire, the SMEs in this trade contribute one third of value to the Italian economy and half of total employment in the country. Following the high death toll, the Italian government was forced to impose a nationwide lockdown and cessation of movement to mitigate the situation. As a result, most factories and businesses were temporarily shut down – therefore, leading to the inevitable; significant shrinking of the economy.

We have all experienced a certain level of hardship or challenges in one way either from a business and/or personal perspective, right from the time the pandemic hit home. Let us not lose hope. If anything, let us grab the available opportunities, experience and experiment and constantly keep looking into improving them.

We shall emerge from these devastating impacts stronger and wiser.

We are on your side!

Hey, nice to catch up once again… I hope life has been kind to you, if it has, well and good. If it hasn’t, don’t worry, the storm never lasts forever, sunny day are coming. Speaking of storms and sunny days, I think the Covid-19 storm is not as bad as it was initially. The fact that we are now registering recoveries, businesses are slowly opening up, we can travel internationally once again etc. that is a sign of our sunny days approaching.

If someone was to tell you that the pandemic would string along some positivity you wouldn’t believe them. Of course the bad side of the pandemic has been really bad because lives have been lost, however, there has been a positive side to the pandemic as well.

One can argue that Coronavirus has been a huge catalyst for digital transformation. Yes, we had digitized some processes and ways of working but COVID-19 took digitization to a whole new level. For example,

• -Most ventures have invested more in cashless transactions and remote shopping.
• -Our children are now home schooling and having online classes. This one in particular is very interesting since for most of us home schooling was a thing prominent with celebrity kids in the west, now all of our children have to study from home and parents have added a new teaching skill under their belt of skills.
• -Working from home and virtual meetings is the new normal. Most companies and employees are now heavily relying on the internet and virtual working solutions now more than ever before.
• -Telemedicine is now a thing! Isn’t it just so convenient how you can now access your doctor and his services from the comfort of your house!
• -Digital banking is now the way to go. In as much as this service existed pre-coronavirus, its usage has gone up ever since the pandemic hit us.

The pandemic came as a wakeup call to most governments when it comes to the state of their nation’s healthcare systems. We have seen more resources being pumped into the healthcare systems to enable them be able to provide to the much needed healthcare service. At least we can say in as much as most countries’ healthcare systems have experienced a strain during this period, most will be better post the pandemic in comparison to pre the pandemic.

Most private sectors have risen up to social causes. Aside from most company’s CSR activities, we’ve seen them donate money and other materials to help the government help its people during such trying times. Our first president was a strong believer of the Harambee spirit which means "all pull together" in Swahili and indeed the private sector has actually depicted this more in 2020 than they have ever done before. If Mzee Jomo Kenyatta was here he would be proud of us.

Our hygiene levels have really gone up. We are more cautious of what we touch and how we interact with other people. We are constantly washing and sanitizing our hands and our homes just so as to keep the virus at bay. The good thing is that as we do that, we are also minimizing the contraction of other diseases cause by germs and bacteria.

These are just but a few of the positive side of Covid-19, the list is much longer but I’ll end it here for now. They say an optimist sees a glass filled halfway with water as half full and a pessimist sees it as half empty. As I step away I’ll encourage you to adopt an optimistic approach to the pandemic, focus on the good and try to better the bad. Thank you for taking time to read. Adios!

Your bank buddy

IMBA

We Are On Your Side

Howdy, hope you’ve been holding up well. The Coronavirus pandemic is still here with us but hey, stay, positive I believe we will rise above it. All the other aspects of our lives have been challenged in bits over the years but 2020 has clearly been the year that our health has been greatly put to test.

We may not have all contracted the virus but we have all been affected by it in one way or another. For some the blow of the pandemic has got their backs on the ropes but we should try be strong, fight back and help others where we can.

They say our greatest wealth is our health but most people don’t value it until sickness sets in. Today I’ll wear a fitness coach hat and give you a few pointers on how to invest in the holistic health of your mind and body.

Let’s start with your inner self... I remember back in the days when I was taking computer lessons, we were taught about GIGO – Garbage In, Garbage Out. If you input wrong data you get wrong output. Our bodies are not so different from computers, if we feed it with unhealthy food it will give us unhealthy results. I am not saying that we shouldn’t enjoy our buggers and pizzas, once in a blue moon.. However, let’s eat more healthy and nutritious foods that boost our body’s immunity. Plug in regular detox to help remove impurities from our systems. I recommend you try Kreo Cleanse’s scientific detox. Your body will thank you for it.

Once you have your food in order and your detox ongoing, switch it up with some regular exercises. I know working out is not as easy as it sounds but try push yourself to do it. It doesn’t have to be an intense daily work out. Start small with simple exercises then graduate gradually. As you start your workout journey I recommend you get a professional trainer to walk you through. That way he will guide you on the exercises best suited for your body type. I started my journey by subscribing to a health membership club at Hilton Hotel. I got a good trainer, the gym facilities are the best and the group work out classes just gives me psych to keep on going since I get to work out with my friends.

Gyming has been proven to be therapeutic for the mind. There is that energy and psych one gets after a good work out session. In addition to that I would recommend you try yoga as well. It will help you calm your mind and focus on what you need to for that day. You can do yoga from your living room, all you need is a workout mat which you can get from Nairobi Sports House; You can get your workout clothes from there too.

For great results I would recommend you consistently practise these healthy habits. We may not have the cure for Coronavirus but you have the power to do what is necessary to boost your immunity and promote your general health. As you start your holistic health journey, you can visit Kreo Cleanse, VLCC, Hilton Health Club and Nairobi Sports House and enjoy great discounts if you are an I&M bank customer.

For more details on these discounts click here. As I take off my fitness coach hat, thank you for reading.

Your bank buddy

IMBA

We Are On Your Side

Ambition in business: An important intangible asset you need to keep your business going.

Ambition in business: An important intangible asset you need to keep your business going

This is not just one of those ‘I have heard it all’ blog pieces. Ladies and gentlemen, you just got into a rich content zone. Stay tuned to find out more about this particular topic. I understand that you have so many questions and if you are like me, you are seeking every probable answer to the uncertainty surrounding us. I don’t have all the answers but I can tell you for free that my aim is to ensure that you gain as much knowledge to apply in your business as possible. This way, you can adapt to the new normal and apply an informed approach in the way you conduct business. You have probably read one too many articles on how to sustain your business while maintaining competitiveness during these times. However, very few talk about those intangible assets in your business that do not necessarily come with monetary value but elevate your brand. In this blog, we are going to look at brand affinity as a crucial part of your business. Brand affinity refers to values that enable you to build that fundamental emotional connection with your customer, in a bid to boost customer loyalty in the long run.

Why is this emotional connection so important? This is why; If a potential consumer believes that a brand shares common values with him/her, chances are, the client will take the product or service up, repeat the purchase again and even refer several friends. If brand affinity isn’t a gem, I don’t know what is!

If you are still not convinced, let us jump right into a great example. Have you ever wondered why you keep purchasing a certain brand in your household over and over again? Think about it, why do you keep purchasing these items despite the availability of alternative brands that suit the same purpose? Most likely you have invested your emotions in the brand and their associated value proposition resonates with your needs.

That said, what do you think top brands both in the local and worldwide context have in common? They maximize on their ability to connect with their customers on an emotional level, as a matter of fact this bond is so strong such that it can be described as a ‘gut feeling’. This invaluable asset emanates from their ability to deliver mind blowing customer experiences. Imagine having such power to drive repeat purchase! I can picture you already naming a few brands in your mind.

Therefore, there is no gainsaying that brand affinity is the ultimate intangible asset you need to attract a loyal customer base, especially during this pandemic. So, the question is, how do you build brand affinity? Here’s how:

• Great customer service – Add that personal touch to satisfy the needs of your clients. Tend to their needs, listen to what is being said about you in the market environment and do the needful, based on the feedback you receive. A great way to get this feedback is through surveys. Remember your that they chose to do business with you because they believe that you are on their side, so work on retaining them. In other words, don’t preach wine and take water.

• Credibility – Trust is a universal key in every relationship. It all starts with a promise. Keeping a promise then builds relationships and ignites the emotional connection spark! Now that is trust. A great way to maintain credibility is to: delivering value propositions, be consistent in communication, share customer testimonials, use your logo in communications to customers for the purpose of maintaining your brand identity, etc.

• Quick complaint resolution - Resolve complaints within a reasonable timeline. Time and efficiency go hand in hand. A great way to get started is to invest in Customer Relationship Management (CRM) systems that are make it easy to retrieve customer information, therefore, resolving issues faster. Imagine having to wait for hours to have an issue resolved; not a great feeling.

• Easy access – Ensure that customers can purchase or consume the product/service conveniently.

• Great communication – It is important to keep clients updated regularly across relevant channels.

• Corporate Social Responsibility – Society is a backbone of any business. Giving back to the community really elevates the reputation of a brand. Acts of goodwill especially during this epitome will go a long way. Let us uphold that moral obligation and assist when we can.

• Customer centricity – ensure that the products and services you provide are customer driven. How can you do that? Foster positive customer experiences, personalize your messages to clients, offer after sale services, think ahead of the customer – this will help you to anticipate their needs, etc.

You are now set with the toolkit to take your business to the next level. Make good use of the indispensable assets to drive that necessary ambition in your business!

Thank you for choosing us.

We are on your side!

Hey, I am your bank buddy IMBA and I want to tell you all about Trade Finance today, and along the journey, I hope this helps your business. Trade finance can be for any business that has a finance gap, between providing goods and services and actually receiving the final payment. Around 80% – 90% of world is reliant on trade and supply chain finance which is estimated to be around 10 Trillion dollars a year.

At I&M Bank, we can help your business with all the support your business needs to grow. So what do we offer? In a nutshell, we offer Letters of Credit and Letters of Guarantee which are two of the most common trade finance products used across the globe: Other services under Trade finance include, Bonds, Documentary Collections (Import and Export) Bill Avialization and invoice discounting etc

I want to explain some of the concepts behind trade finance. So how does it work? A trade finance transaction requires:
Goods and services, A buyer, A lender, such as I&M Bank who would come in and fund this trade and A seller

Trade finance is relevant where a seller requires the buyer to prepay for goods that are to be shipped while the buyer wants to reduce their risk by asking the seller to document that the goods have been shipped. I am going to show you how a simple trade finance deal could work, although there are many different forms of trade finance:
Let’s assume, your business deals in toys for children. You as the buyer (in Kenya) agree to purchase the toys from the seller who is in ChinaThe buyer in this case (your business) will approach the lender and you will then agree terms with the lender after which the lender will pay the seller upon shipment of the toys.Once you receive the toys and sell to your customers, you will then repay the lender on the due date. It is as simple as that!

So, if your business purchases/imports goods from abroad, you might use trade finance facility to mitigate and reduce your risk. I&M Bank can assist you with bridging this financial gap and take on the responsibility to ensure the trade is safe, effective and secure. These include, controlling some financial elements on the trade, keeping a close eye on the trade cycle throughout the transaction and ensuring the security of goods.

If you are wondering how your business will benefit, see below:
It will improve operational efficiencies and cash flows, increased revenue and earnings.It will help remove the supply risk from you as the buyer and payment risk for the exporterProtects both your business and the seller from the inherent risks present in international trade. These unique risks related to currency fluctuations, political stability, issues of non-payment, or the creditworthiness of parties involved.It allows you to produce more working capital and improve the management of cash flowYour company will be able to full fill large orders that would usually not be possible which will allow you to achieve higher profit margins because the facility allows both buying of products and advance payment which can be great for economies of scale.Relationships between your business and the seller is strengthenedYour business will be more efficient and competitive in the marketThere will be fewer bad debts, late payments from debtors, excess stock and this could all bring down the problems associated with demanding creditors.

Now that you know how trade finance works, lets see what lenders generally ask for? We generally find that having prepared the following, lenders can make a quick assessment and help your business get trade finance. Here is what you should be able to provide.
Audited financial statementsFull business planFinancial forecastsCredit reportsDetails and references of directors andInformation on assets and liabilities etc

Thanks for reading through. Let us know how we can grow your business.

Your bank buddy
IMBA

We Are On Your Side

Here is the thing about change; it is inevitable and comes with a package of impacts. We were going about our businesses as usual until boom! A new reality hit us; COVID-19. This is how it must have felt like to our ancestors 100 years ago during the last worldwide Spanish flu pandemic of 1920 that decimated anywhere between 17 and 50 million people………but without the internet age in which we are living in today and the mass personal travel available meaning that the spread of this novel virus was transmitted at the speed of light!

Positively though advances in medical sciences in the last 100 years also means that we have better protocols of managing the medical cases arising from COVID-19 (as well as other viral infections) and in all possibility restricting the devastation and number of deaths worldwide.

We are now living in uncertain times brought on by COVID-19 and we find ourselves faced with the reality of a new normal. The sad reality is that we didn’t see it coming….after all who anticipates such things!!

Businesses, sole proprietors, corporates, individuals etc, are all seeking insights and solutions on how to adapt to this new normal. As an inevitable part of their role, business leaders have to find ways to navigate through the crisis in a bid to sustain business continuity…..a difficult job at the best of times and doubly so now.

The world is changing around us, but let’s not forget that so is the novel COVID-19. So, what do we do? How do we go from here? So many questions running through our minds and even more confusion fueled by all kinds of conspiracy theorists which isn’t helping matters much…………. including the price of oil!

The time to face the unpleasant truths and to look past the brick and mortar way of doing business has come. Let us forge a new path ahead, beyond the uncertainty we are in. Do we have all the answers? Well, one thing is for sure, we can certainly point you in the right direction because we are on your side!

Now, let me take you through the global context of current happenings as well as a few pointers to help you navigate through this difficult and evolving economic situation. I’ll try to keep it simple so that I don’t lose too many of you along the way……….. more so those working from home!

The Global Context

Right from the onset of the pandemic, various economies around the globe experienced an economic downturn. As a matter of fact, the consensus position from business commentators predicts a recession and in the worst-case scenario, an economic depression. There’s a struggle to sustain businesses owing to imposed curfews, restrictions and lockdowns, such that businesses have been forced to respond in ways that have led to inevitable effects to the labour market. One of the major implications that cuts across the business landscape is the significant number of layoffs in an effort to cut on costs of operation. In case you were affected by this unprecedented effect, do not lose hope for we will eventually find ways to navigate through the pandemic.

There has also been major disruption in supply chains, resulting in a knock-on effect on various industries owing to unprecedented outcome with respect to the pandemic. For instance, insurance and oil markets have experienced major setbacks. Insurers are not receiving claims as people reluctant to visit hospitals in the fear of being infected. In some cases, global policies are actually implementing this limiting measure to avoid overwhelming the health systems, more than they already are.

While we have seen reduction in oil prices, this price dipping effect was felt way before the epitome of the coronavirus pandemic. Price wars within OPEC, arose from issues revolving around overproduction. In the new dawn, immediate effect was however suddenly felt owing to the unexpected outcomes travel restrictions that suddenly led to reduction in particularly personal transport, hence low demand for oil.

On the bright side, there have been attempts by governments and central banks around the world to mitigate the effects of the coronavirus pandemic.

Like with every crisis, particularly arising from health issues, we expect changes to take root in terms of ways of working around the pandemic. Immediate focus by different governments is to quickly get economies back on track. This is expected to take all sorts of forms; the principal ones being fiscal and monetary policy measures, to allow business to recover from trade shocks.

Some of the measures taken to contain the economic damage on a global landscape are but not limited to:Tax reduction to encourage circulation of moneySovereign guarantees to support affected businesses such as additional funding to health sectors and assistance in the form of unemployment benefits.Tax deferrals to allow companies that are in the business of supplying essential services to defer payment of profit tax for a specified period.Introduction of policy measures which have been occasioned by Central bank trying to lessen the impact of the crisis on economies. E.g. reduction of interest rates.Stimulus packages aimed at cushioning individuals and businesses against the impact of COVID-19

Still on a positive note, we have witnessed the green effect of cleaner air as land borne/airborne/seaborne pollution emissions have reduced. On the social front, families are spending ample time together. Other positive effects would be the realm of changes on business models. Businesses have been forced to rethink their business models on ways to work better to enhance business continuity. An evident outcome of the reassessing process is allowing work on a virtual basis while maintaining the desired level of productivity, which is by far a great way to cut on costs.

Despite the uncertainty, some businesses are actually thriving despite the given circumstances, having been lucky enough to experience a rise in demand for essential goods and services.  So, in the next blog article, we shall have a look at which some of these businesses are and most especially, how these businesses are grabbing the available opportunities in order to boost business continuity.

Stay tuned for the next issue!

Until then, stay safe!