As a result of new Kenyan government regulation which requires registration of Subscriber Identity Module (SIM) cards by mobile phone users, the country is experiencing growth in the mobile banking population because mobile phone operators in Kenya are encouraging subscribers to simultaneously activate a mobile bank account.
The goal of the mandatory SIM registration process is to collect personal data for mobile phone subscribers in order to reduce cell-phone-related crimes.
“We are signing up an estimated 8,000 accounts per day, arguably the largest number of customers we have handled in the history of the bank,” said Equity Bank CEO Mr James Mwangi [1]. Safaricom, a mobile phone operator in Kenya, recently expanded its mobile money offerings with the launch of the M-Kesho account, a mobile banking product for account holders of Equity Bank, a Kenyan microfinance bank.
Family Bank’s PesaPap, a mobile phone bank account, was also recently launched. According to a recent article, it has already acquired 88,000 customers. Mr Kevin Kihara, Senior Manager of Innovation and Strategic Partnerships at Family Bank, said the bank is targeting 500,000 customers by the end of this year [1]. Family Bank is a financial institution serving the unbanked population in Kenya with total assets of KES 13.6 billion (USD 159 million) at March 31, 2010.
Mobile banking accounts allow customers to use a mobile phone to conduct banking activities, including applying for loans, paying loan balances, bank account transfers and bill paying.
By Jennifer Shevock, Research Associate
About Equity Bank:
Equity Bank is a microfinance bank based in Nairobi, Kenya. It provides loans, savings, and fund transfer services, and it is funded through its savings deposits and shareholder capital. It accounts for 52 percent of bank accounts in Kenya with over 4.1 million accounts. It is involved in microfinance operations not only in Kenya, but also in Southern Sudan and Uganda through its subsidiary, Equity Bank Uganda. As reported to the Microfinance Information Exchange (MIX) Market in 2009, Equity Bank has USD 1.27 billion in total assets, a gross loan portfolio of USD 818 million and 716,000 active borrowers.
About Family Bank:
Family Bank is a Kenyan financial institution serving the unbanked population. Total assets are KES 13.6 billion (USD 159 million) at March 31, 2010.
Sources and Additional Resources:
[1] “New wave of mobile banking hits Kenya” July 12, 2010. http://www.theeastafrican.co.ke/business/New%20wave%20of%20mobile%20banking%20hits%20Kenya/-/2560/956382/-/ltxoixz/-/index.html
“State declares SIM card registration mandatory” June 22, 2010.
http://www.standardmedia.co.ke/InsidePage.php?cid=14&id=2000012145
MicroCapital Universe: Equity Bank: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Equity+Bank
MicroCapital Universe: Family Bank: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Family+Bank
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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