Microfinance banks fall behind on innovation over high staff costs

The struggle by microfinance banks to keep up with research and development comes amid the financial challenges facing the institutions.

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Microfinance banks (MFBs) risk falling behind their larger commercial bank peers on innovation as they cut staff linked to innovation functions over cost concerns.

The Central Bank of Kenya (CBK) Banking Sector Innovation Survey 2024 shows fewer institutions had dedicated functions that spearhead innovation activities than in the previous survey.

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Note: The results are not exact but very close to the actual.