How important is mobile banking with regards to reaching Kenya’s unbanked population, especially in the rural areas?
We think that it could be enormously important. The M-Pesa product (Safaricom’s mobile money transfer service) has already reached more people than any other financial service available in the country. In a survey undertaken last year over 95% of users rated this mobile-based payments service as quicker, easier, safer, more convenient and cheaper than the alternatives available at the time. Safaricom and Equity Bank recently launched M-Kesho, a mobile banking product that allows users to earn interest on their money as well as access to micro-credit and micro-insurance products. Will we see other banks follow suit and unveil mobile banking products? I think for those banks looking to operate in the retail mass-market it is likely to become increasingly important. There are two important elements to a product like M-Kesho – (i) access to many thousands of outlets through which it is possible to either deposit or withdraw cash and (ii) the ability to transfer money at any time to someone
