NBK inks joint money services deal with Airtel

The National Bank of Kenya (NBK) and Airtel Wednesday announced a partnership that will see the two firms offer a wide range of financial services to their customers.

Airtel customers will manage their bank accounts through the Airtel Money platform and carry out transactions via the lender’s branches, agents and ATMs, while NBK customers will access the mobile banking platform — NatMobile — via Airtel Money, transfer money between the two platforms and also settle utility bills.

The new service will be available for free for the first three months after which charges will apply, the two firms announced.

“Our transformation agenda is in progress, as we strategically leverage on innovation and technology to expand the scope and reach of the distribution network,” said NBK managing director Munir Ahmed in a statement.

The two companies say the deal will increase the reach for their customers, making it easier for them to carry out transactions without having to physically visit a branch.

Airtel was ranked as the country’s second largest mobile operator with 7.2 million subscribers as at September 2015, according to the latest statistics from the industry regulator. Its mobile money subscribers stand at 3.1 million served by 9,986 agents across the country.

National Bank, a tier two lender, currently has about one million customers but the new product will not be available to about 70,000 of them who are corporate clients.

The deal is a continuation of a market trend where banks have partnered with telcos to provide convenient mobile money transactions.

In October, Airtel partnered with I&M linking their customers’ bank accounts with the telecoms operator’s mobile money service and allowing them to transact a maximum of Sh140,000 per day.

KCB and Airtel entered into a similar agreement in August, allowing the telco’s mobile money customers to deposit or withdraw money at KCB outlets.

The deal also allows Airtel’s agents to obtain ‘float’, the virtual money used in their transactions, from KCB outlets.

“This service gives customers the freedom to manage their bank account from their phone thus providing that much needed convenience and simplify the banking process,” said Adil El Youssefi, Airtel Kenya chief executive.

“As technology and financial services continue to merge we have no doubt that this partnership will be a great step towards improving the lives of our customers.”