Coopbank’s Eco Branch: A Sustainable Oasis in Rural Ethiopia
Coopbank’s Eco Branch – where sustainability meets financial empowerment in the heart of rural Ethiopia. Our commitment to innovation, environmental conservation, and market expansion has led us to introduce a ground-breaking concept, the Eco Branch, designed to serve communities that have long been underserved.
Connecting with Nature: Powered by Renewables:
Situated in areas untouched by traditional banking infrastructure, the Eco Branch is not just a financial hub but a testament to our dedication to environmental responsibility. Its unique design, constructed entirely from recycled containers, reflects our pledge to support environmental protection and sustainable systems.
The Eco Branch operates exclusively on renewable energy, utilizing solar technology and wind turbines. This not only ensures a pollution-free environment but also aligns with our commitment to minimizing our ecological footprint. Beyond banking services, our branch stands as a symbol of sustainable practices, harnessing the power of nature to serve our community.
Banking in Harmony with Nature:
Aesthetics and Green Development
Experienced professionals at the Eco Branch provide a full spectrum of banking services, from savings and loans to remittances and exchanges, tailored to the needs of the local community. Realizing that rural communities are the economic backbone of Ethiopia, we have strategically expanded our services to ensure that no one is left behind.
The Eco Branch is not just a financial institution; it is a catalyst for the aesthetics and green development of the surrounding villages. We believe in giving back to the community by enhancing the visual appeal of urban areas and contributing to local development infrastructure.
Extraordinary Access:
Our dedication to greener banking extends beyond infrastructure. Reaching the unreached has prompted us to introduce the "Eco-branch" innovation. Even in areas with no development infrastructure for banking services, Coopbank has pioneered this new concept to bridge the gap, ensuring financial inclusion reaches every corner of rural Ethiopia.
Sustainable Banking for the Future:
As part of our eco-friendly initiatives, Coopbank has taken the extra step to replace generators at the branch with solar energy, ensuring the sustainability of renewable energy across the board. We are not just a bank; we are a force for positive change, embracing a business model of inclusive financial services that strengthens the community economy.
Eco-Branch
Eco-Branch
Coopbank Eco-Branches journey:
Coopbank’s journey towards greener banking is not merely a response to global environmental challenges but a proactive stance to contribute positively to the communities we serve. We believe that responsible banking involves safeguarding not only financial interests but also the well-being of the planet we all share.
Market expansion
the bank demonstrates a strong commitment to community engagement. As a pivotal player in the nation's banking sector, Coopbank actively fosters economic growth and community development, solidifying its role as a catalyst for positive change.
Eco-branches in remote rural areas
Coopbank's 50 Eco-branches in remote rural areas are eco-friendly branches that use modern technology to provide sustainable banking for long-unbanked communities.
With a total of 740+ branches nationwide
the bank demonstrates a strong commitment to community engagement. As a pivotal player in the nation's banking sector, Coopbank actively fosters economic growth and community development, solidifying its role as a catalyst for positive change.
Join Us on the Eco Journey:
We invite you to experience banking in a new light at Coopbank’s Eco Branch. It’s not just about financial transactions; it’s about fostering a sustainable future for rural Ethiopia. By choosing the Eco Branch, you contribute to a greener, more inclusive tomorrow.
The history of cooperative banks has been traced back to the financial exclusion faced by many communities in the 19th century. With the industrial revolution, the emerging financial services sector was primarily focused on wealthy individuals and large enterprises in urban areas. The rural population, particularly farmers, small businesses, and the communities they supported, were excluded from financial services. Thus, cooperative banks were originally set up to correct this market failure and to overcome the associated problems of asymmetric information in favor of borrowers.
In respect of Ethiopia, the country has a very low financial service coverage as mainstream financial institutions are heavily tilted towards the urban centers with good physical infrastructure, leaving the rural areas underserved. Traditionally, ‘Equbs’ and ‘Idirs’ are informal institutions that are deeply ingrained in the life communities and have also been serving financial needs of the rural society to some extent. Reluctance and low capacity of the formal financial institutions in the country to serve rural community, a demand-supply gap prevailed in financial market especially in rural areas, coupled with farmers’ awareness to be organized into cooperatives and the increasing need to finance cooperatives called for establishment of a cooperative bank. Furthermore, finance appeared to be the critical bottleneck to sustain the cooperative institutions and ultimately the farmers. It was all these glitches that initiated the inception and establishment of Cooperative Bank of Oromia.
Haile Gebre Lube, regarded as the founding father (proponent) of Ethiopia’s cooperatives, brought the idea of founding the bank for he believed that the best way to fight poverty is through cooperation. Formally establishing a project office in 2002, the bank’s formation was realized with majority of shareholders being the cooperative societies. The bank then is commercially licensed in October 2004 and commenced operations in March 2005. As there is no legal provisions that allow establishment of a cooperative bank in the country, the bank was registered in accordance with article 304 of the commercial code of Ethiopia.
The Bank has broad ownership base and diversified ownership structure. It comprises Cooperatives and Non-Cooperative members. Cooperative member includes Primary Cooperatives, Cooperative Unions and Cooperatives Federation whereas, non-Cooperative members includes Organizations, Associations and individuals.
Currently, the Coopbank is among the leading private banks in Ethiopia with a total asset of more than ETB 55 Billion. The bank has more than 420 branch networks, 6.4 million accountholders, and has created a job opportunity for about 8,000 individuals.
Corporate Colour: Coopbank has Cyan blue as its main color and Black as secondary colour. In addition to that, there is Accent Colors which can be used to accent or contrast to the primary colour for different designs.
We root our foundation in communities to provide banking solutions that create greater customer experience with emphasis to cooperatives and agro-based businesses through proper use of human resource and up-to-date technologies to maximize stakeholders’ value.
I am honored to present the performance highlights and key accomplishments of Coopbank during the fiscal year 2022/23. This year was marked by multitude of challenges and significant achievements. Despite these challenges, we emerged stronger and more resilient by achieving modest growth in the fiscal year. Coopbank’s Performance in Key Metrices Deposits
During FY 2022/23, Coopbank’s total deposits grew by an impressive 20.13%, reaching a deposit position of ETB 116.25 billion as of June 30, 2023. Conventional deposits constituted the majority, representing 83.3% (ETB 96.83 billion), while the remaining 16.7% (ETB 19.42 billion) went to interest-free banking deposits.
Loans and Advances
As to the loans and advances, Coopbank’s portfolio grew, reaching ETB 101.91 billion by June 30, 2023. We disbursed fresh loans amounting to ETB 31 billion to various sectors of the economy during the fiscal year. Customer Base Expansion
Broadening our customer base is a key factor for the sustainable growth of our bank. During FY 2022/23, we successfully recruited an additional 2.24 million deposit accounts, bringing our total deposit accounts to 11.2 million as of June 30, 2023. Profitability
Our bank earned a gross profit of ETB 4.36 billion before impairment loss and tax during FY 2022/23. The profit before tax and after impairment loss for the fiscal year amounted to ETB 3.39 billion. Capital
During FY 2022/23, Coopbank successfully mobilized additional share capital of birr 2.28 billion, bringing the total paid-up capital of the bank to ETB 10.02 billion as of June 30, 2023. Over the last five years, Coopbank’s paid-up capital has grown on average by 45%, and we remain committed to continued e orts and strategic approaches to reach the required paid-up capital commensurate with the asset growth of the bank. Customer Convenience
Coopbank recognizes the evolving customer expectations and shifting sentiments. We are committed to leading the digital transformation by leveraging digital technology and customer engagement innovatively. To foster the transformation of banking operations and services, Coopbank has established a signi cant number of touchpoints at branches and other outlets. As of June 30, 2023, we proudly operate 738 branches and a considerable number of digital outlets. This includes over 83,000 active Coopay-Ebirr merchants and 17,700 active Coopay-Ebirr agents throughout the country. The total number of active Coopay-ebirr mobile accounts reached over 4.8 million as of June 30, 2023. Coopbank’s customers conducted a substantial volume of transactions through these digital platforms, with digital transactions accounting for 63.1% of the total. Technology and Innovation
The role of technology in shaping the future of banking cannot be overstated. Coopbank has embraced this fact and has been proactive in enhancing the customer experience and addressing emerging risks. Information system upgrades, including Database, Temenos Transact System, and Endpoint Security Solution Upgrades, have been carried out. We employ data analytics to gain a 360-degree view of the customer journey, allowing us to customize need-based nancial products and services. Coopbank’s agship digital platform, Michu, provides cutting-edge digital services to retail and MSMEs customers. We have expanded our digital lending services with the Michu Digital Lending app, now available in various Ethiopian languages. The bank has also ventured into digital payments for transport, water services, entertainment services, and fuel transactions.In line with this, the bank initiated several strategic projects to achieve long-term objectives. Fostering the Coopay Ebirr platform, including integration with 3rd party systems, ensuring Inter-operability, agent networking, enhancing transactions, and expanding our footprint in the country’s Digital Transformation. Dx Valley
So as to proactively navigate the digital era, offer enhanced services and remain competitive in the industry, the bank has instituted the innovation hub dubbed “Dx Valley”. With the launch of several projects in our belt that are going to be launched in the very near future, Coopbank’s commitment in becoming at the forefront of digital innovation will be further enhanced. Outlook for the Future
Looking ahead, to succeed in an ever changing operating environment, our focus will be on innovation, digital transformation, improved efficiency, and the capabilities of executing our strategies. The achievements of Coopbank in FY 2022/23 were the result of the dedication and hard work of our employees and, the strong support and direction of our board of directors, unwavering support of all our customers, NBE, partners and stakeholders. I extend my sincere gratitude to all for the boundless e orts throughout the year.
Thank you,
