Customers using the innovative mobile-phone based, micro credit and savings product KCB M-PESA have transacted over Sh 7.8 billion in loans in the twelve months since its launch last year.
The joint initiative between Safaricom and KCB Group has recruited over 5.2 million customers in the period, with an average Sh 660 million loans disbursed through the service on a monthly basis.
“KCB M-PESA has revolutionalised lending and redefined banking. Accessing affordable credit has never been easier and faster than it is today because of this mobile phone technology allowing customers to borrow instantly. A year after we launched this product, we firmly stand at the epicenter of transforming the financial services sector in East Africa and beyond,” said KCB Group Chief executive officer, Joshua Oigara
Safaricom and the KCB Group’s joint partnership on KCB M-PESA merges the adaptability of the mobile money transfer platform M-PESA with reliable banking services from KCB, Kenya’s largest bank by assets.
“Our joint initiative harnesses the transformative power of cross-industry partnerships. We believe that the mobile phone and M-PESA in particular have the ability to enhance financial inclusion service delivery to a broad set of customers who are demanding more flexibility as we enter the era of disruptive m-finance,” said Bob Collymore, CEO, Safaricom.
Safaricom and KCB Group entered into their first strategic partnership in June 2014 with the launch of their first joint proposition, Biashara Smart, which offers a suite of technology and financial solutions, geared at enabling SME’s grow to the next level.
“Our partnership leverages on our respective strengths in our different sectors. By pooling our abilities, we are able to break new ground and be more responsive to market dynamics which are to a very large extent reliant on cutting-edge ideas and technology,” said Mr. Collymore.
According to Financial Sector Deepening Report (FSD Kenya) 2016, 18 per cent of the population using new mobile banking services such as KCB M-Pesa and Mshwari, the proportion of bank account users has now risen to 38 per cent a 10 per cent increase since 2013.
This clearly indicates how mobile banking continue to significantly contribute to financial inclusion in the country.
All of the over 19 million M-PESA customers are able to access the service to by dialing *844# to access the product, see how much they can borrow and then following prompts to secure the loan which will be sent to their mobile phones instantly.