Banks target the tech-savvy with loans

With the banking sector remaining liquid, banks have been aggressive in providing unsecured lending products, especially to those in salaried employment.

The liquidity ratio now stands at over 40 per cent, above the 22 per cent threshold required by the CBK.

This comes a month after the kick off of sharing of credit referencing among banks, a move that is likely to reduce the transaction time for securing loans and enable banks price loans based on a borrower’s risk profile thus easily isolating serial loan defaulters.

The Kenya Bankers Association (KBA) have reported impressive compliance by commercial banks in the implementation of customer credit information sharing exercise.