Kenya Commercial Bank Group and East Africa’s biggest mobile phone operator, Safaricom have launched a new mobile banking product for Kenyans aimed at easing credit access for many.
The product which will make it easy for Kenyans to access loans at the click of a button on their phones,is the latest from the company which has eased money transactions on mobile phones and has remained the envy of many countries around the world.
Many Kenyans will find this product convenient especially for those looking for quick credit.
But how accessible is it for a high percentage of citizens who still cannot afford bank loans due to high lending rates? and how is it going to change the way banks in the country transact business?
The KCB-M-PESA account enables customers to get loans using their mobile phones. The loans will be offered with a flexible repayment period ranging from one month to six months.
The intrest payable e for the loan starts at 2% per month and Customers have to open either a fixed deposit account or a target savings account in order to access the facility.
Safaricom and KCB Group entered into the strategic partnership in June, 2014 and launched their first joint proposition, Biashara Smart, which offers a suite of technology and financial solutions geared at enabling SMEs grow.
Last year alone, Kenyans paid bills worth Sh1 billion through M-Pesa to KCB, deposited Sh59 billion and withdrew a total of Sh66 billion thus justifying the feasibility of this product.
