Nairobi, Kenya: As more commercial banks are betting on the mobile platforms to enhance
services and grow access through mobile phones, Equity Bank , has enrolled over half a
million accounts since its launch in late May, M-Kesho, a mobile banking product, indicating
the potential of the platform.

About 19 million people own mobile phones, giving commercial banks a platform to enhance
their reach without incurring huge capital expenditure to build branches. The National
Financial Access Survey of 2009 says the financial sector serves a paltry 23 per cent of the
bankable population.

According to the Communications Commission of Kenya, by mid this year, the combined
penetration rate of mobile service had risen to 49.7 per cent, almost tallying with the
world average of 49.8 per cent.

The financial access survey says there is room to improve services through the mobile
platform and allow the sector to reach more users more affordably.

Mr Joseph Kairigo, the general manager at Dimension Data, says the success of the innovation
is linked to the versatility of the handsets. “Many service providers such as power and
water companies and airlines have integrated bill inquiries and payment by use of mobile
phones, hence easily accepted as it replaces office visits to pay bills,” says Mr Kairigo.

The rapid evolution of mobile banking has opened a new opportunity window for innovators who
come up solutions for e-transactions.

Central Bank of Kenya (CBK) governor Njuguna Ndung’u recently says: “There are countless
opportunities which can be exploited through branchless banking and the need to use
data-enabled mobile phones will address the risks associated with potential disruption of
businesses.”

 

 

 

 

 

 

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