The revolutionary mobile banking product launched last month between KCB and Safaricom, dubbed KCB–M-PESA has hit a major milestone by reaching 1 million accounts, just a month after it was launched.
The account signed their 1 millionth customer this week with both firms indicating that the mobile financial product has in excess of KShs. 700Million since the launch, four weeks ago.
KCB Group CEO, Mr. Joshua Oigara, said the product is a path towards the development of a cash-lite economy in East Africa that has enabled the bank and the telco drive their financial inclusion agenda across the region.
“The 1 millionth customer is just a show of how this product is significant to our customers, the fact that one can borrow as low as Kshs.50/= for bus fare says a lot. It is those little amounts that are making a difference in people’s lives showing how this innovation is driving financial inclusion”, said Oigara.
As at Monday 27th April 2015, the total accounts opened stood at over 1.3 million with an average loan size being KShs. 3,000/=. The high number of enrolment is attributable to the aggressive mobilization strategy employed by the two corporates and the fact that over 82% of the population who own mobile phones in Kenya find it convenient to make payments through their mobile phones. The entry of affordable smart phones has also enabled majority of the people to own mobile phones thus increasing the penetration of mobile phones in the country.
The KCB-M-PESA account offers customers a platform to borrow money based on their credit worth history, save money on their mobile phones and later borrow loans that are repayable within a maximum of 6 months making it the only product of its kind in the market.
The account offers loans of a minimum of KShs. 50 and as much as KShs. 1Million with interest as low as 2%, this is a product for everyone
“Mobile banking has given consumers cheaper access to their finances thus reducing the need to travel to our branches. The large number of people who are not in the formal financial system find mobile phones as the only way to access financial services,” he added.
KCB-M-PESA account holders are required to dial the USSD code *844# to see how much they can borrow and follow the prompts to secure the loan which will be sent to their KCB M- PESA accounts instantly. The loan amount is determined by the amount of savings that the customer has made M-PESA balance, and their savings on both Safaricom and KCB platforms and usage of their suite of products.
