Co-op Bank woos clients with free access to mobile app

Co-operative Bank has abolished fees charged for on-net transactions within its mobile banking application MCo-op Cash in a bid to woo customers.

The bank’s customers previously paid Sh35 to move cash from one MCo-op Cash account to the other.

Co-op said the mobile wallet has already signed up three million users to the Android app which offers loans, cash transfer, and pay utility bills and purchase airtime.

“This is meant to remove price barriers associated with making mobile-based money transfers and payments, and encourage greater use of the cellphone as an alternative banking channel,” said Gideon Muriuki, Co-op Bank group managing director.

Customers will, however, continue to pay for other services on the MCo-op Cash such as transfers to sacco and bank accounts.

Mr Muriuki disclosed that MCo-op Cash has a loan book of Sh3 billion with an average loan size of Sh13,000 per customer as at June 30, 2016.

Co-op Bank in August 2014 unveiled M-Co-op Cash as the Kenyan banking industry increasingly takes to mobile platforms to increase access and cut costs associated with the brick-and-mortar model.

Mobile lending is fast gaining currency in Kenya, with nearly a dozen major players in the market including standalone apps such as Tala, Branch, Saida and GetBucks as well as commercial banks’ platforms such as M-Shwari, KCB M-Pesa, and Equitel.