Mobile money revolution is all over across countries in Africa, With large sections of the population unbanked yet actively using feature phones to access mobile money services and pay for physical goods, bill payments, transferring money person to person, or accessing digital goods and services continue to dominate.
The mobile banking, now occupied by KCB’s M-Pesa, M-Shwari and Equitel offers viable edge for Kenyan creditors, giving easier and broader access to customers and mobile market. Which has continued to show strong growth in the number of mobile money subscribers.
Kenya Commercial Bank (KCB)’s mobile-based bank account, KCB M-Pesa, has advanced KES 10.3 billion in loans to its customers since inception about two years ago, boosting access to credit in Kenya. The savings and micro credit platform, a joint initiative of Safaricom and KCB, has also signed up 6.4 million account holders so far. The account holders have KES 286.1 million saved on the platform. Every day, the platform advances between KES 25 million and KES 30 million in loans.
Safaricom CEO Bob Collymore said that the huge success that KCB M-Pesa has enjoyed highlights the value of strategic partnerships in delivering innovative solutions that are aligned to customer needs. KCB M-Pesa was launched in March 2015.
The platform allows registered customers to save up to KES 1 million, earning up to 6 per cent in interest. Accountholders can also access up to KSh1 million in instant loans, accessible on the M-PESA menu on the SIM toolkit under the updated Savings and Loans tab.
KCB Group CEO, Joshua Oigara said that the new platform influences technological innovation to deliver financial products and services. KCB M-Pesa is now available directly on the M-Pesa menu, and customers no longer need to dial *844# to access it.
The loan amount is determined by the amount of savings that the customer has made, M-Pesa balance, and their savings on both Safaricom and KCB platforms and usage of their suite of products. Customers also have the option of operating fixed deposit accounts – fixed savings account and target savings account on KCB M-Pesa.