KCB mobile phone-based service hits over one million accounts
KCB chief executive Joshua Oigara said the bank’s mobile platform is part of the push towards the development of a cash-lite economy. PHOTO | FILE
What you need to know:
The platform dubbed KCB-M-PESA signed its one millionth customer this week and its deposits grossed Sh700 million since its launch last month.
The service has raised the total number of KCB’s customers, including those holding traditional accounts, to 5.4 million.
KCB Group’s mobile phone-based lending services has hit more than one million accounts a month after it was launched, underlining the high potential of mobile banking.
The platform dubbed KCB-M-PESA signed its one millionth customer this week and its deposits grossed Sh700 million since its launch last month.
The service has raised the total number of KCB’s customers, including those holding traditional accounts, to 5.4 million.
This has boosted the lender’s presence in the retail lending market that is dominated by Equity Group with 10 million customers.
Equity said it has signed up a cumulative 526,500 customers on its mobile banking platform Equitel as of March, signalling the race to promote the cellular-based services.
Commercial Bank of Africa CBA, which also has a tie-up with M-Pesa called M-Shwari, says its customer base has grown to 10 million.
KCB’s CEO Joshua Oigara said the bank’s mobile platform is part of the push towards the development of a cash-lite economy that has enabled the bank and the telco drive their financial inclusion agenda across the region.
“As at Monday April 27, the total accounts opened stood at over 1.3 million with an average loan size being Sh3,000. The high number of enrolment is attributable to the aggressive mobilisation strategy employed by the two corporates,” Mr Oigara said.
He added that the uptake is a signal of future potential of the micro lending service through which one can borrow Sh50.
“It is those little amounts that are making a difference in people’s lives showing how this innovation is driving financial inclusion,” Mr Oigara said.
The KCB-M-PESA account offers customers a platform to borrow money based on their credit history, save money on their mobile phones and later take loans that are repayable within a maximum of six months making it the only product of its kind in the market.
The account offers loans of a minimum of Sh50 and as much as Sh1 million with interest as low as two per cent. The loan amount is based on M-Pesa transactions.
Since its launch in October, Equitel and has made 4.5 million transactions valued at Sh4 billion.
CBA in March said loans amounting to Sh29 billion had been advanced through M-Shwari, up from Sh7 billion in February last year.
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