Banking the Rural Areas, the Key Driver Behind an Impressive Growth
Coopbank, founded by farmers 20 years ago, has grown into one of the leading banks in Ethipisa, serving nearly 14 million customers. With a strong rural client base, the bank aims to reach an additional 3 million farmers in the next 3 years through a digital agri platform. To achieve this ambitious goal and to become a thought leader in the Food & Agriculture sector, the bank has partnered with Rabo Partnerships. This collaboration has supported the bank in building up its food & agriculture expertise and led to a strategy focussed on data and digitalization to drive growth in the coming years.
Data and digitalization are key strategic pillars for expanding the customer base in the Food & Agriculture sector. High-quality data and “knowing your customer” are essential for providing financial services in general. The use of remote sensing data provides a new way for the bank to mitigate risks for farmers and for the bank.
‘It has been my aspiration to elevate rural communities while fostering a profitable business model for the bank. Inspired by the model of Rabobank, we have surpassed expectations, setting a strong foundation for the future generations.’ - Mr. Deribie, President of Coopbank
Additionally, the bank plans to digitize value chains and support the ecosystem around farmers. This includes creating market linkages and offering non-financial services to farmers, such as facilitating access to soil testing equipment, that is needed to apply the right quantity and quality of nutrient. By teaming up with agronomists, farmers will be advised on best agricultural practices, including regenerative methods.
This combination of digital and agricultural expertise gives Coopbank a unique position in the market and the ability to grow its agricultural loan portfolio. By reaching out to farmers underserved by the formal banking system and by improving access to various other services, the bank enables farmers to increase food production, which positively impacts rural livelihoods.