East Africa: Online Banking Still a Challenge to Many Kenyans - Study

Online banking still remains a challenge to many people even as the smart phone penetration in Kenya experiences substantial growth due to increase in internet and mobile connectivity which has seen many local banks introduce online banking services at low rates.

This is according to a new survey unveiled by Jumia Kenya dubbed as 'The growth of the smartphone market in Kenya'.The paper, looked in detail at the evolution of the smartphone market in Kenya as well as consumer behaviours in relation to smartphone purchases. Findings within the report are based on a qualitative research conducted by Jumia.

The survey involved 576 Kenyan smartphone users where 36 per cent of survey responses were Female and 64 per cent male, broadly matching the demographics of internet users in the country as a whole.

Out of the 576 interviewed 26 per cent of them acknowledged that they used online banking while 74 per cent they don't really use online banking the main reason being, they doubted if online banking was quit secure. This is quite a low number keeping in mind that the country has a mobile and internet penetration of up to 83 per cent and 58 per cent respectively of the 44.35 million population in Africa.

"It takes a while for people to gain trust; they do not also want to lose money as they transact online," said Jumia Kenya's Managing Director Parinaz Firozi during the release of mobile banking report in Nairobi.

The survey also revealed that the most popular activity by smartphone users was chatting and social networking at 78 per cent, higher than calling which was named by 75 per cent of users. E-mails and online browsing both accounted for 69 per cent, followed by the data heavy activities falling under entertainment; 57 per cent of respondents played games, listened to music and watched videos on their smartphone.

49 per cent of users claimed to use their smartphone for online shopping, pointing to the fact that the sample was taken from the network of Jumia.co.ke, Kenya's biggest online retailer. In a recent IPSOS survey, 1 per cent of all internet users country-wide claimed to pursue this activity.

"Kenya is uniquely positioned with a young and growing middle-class generation eager for the next new smartphone with a strong value proposition in the market. There seems to be a shift from brand loyalty into value propositions of the phone," added Ms. Firozi.

Jumia also launched a mobile week sale which will see more customers purchase smartphone on discount. Customers who purchase mobile handsets during the sale will enjoy countrywide delivery that Jumia offers alongside the option to pay on delivery and a flexible return and exchange policy of 7 days. The event also saw Fly mobile and Innjoo introduce their newest brands Fly Mobile Eclipse 3 and Innjoo fire to retail for Kshs 4,999 and Kshs 7,888. Adding into the voice, Microsoft Mobile Devices, Infinix, Samsung and Tecno unveiled new prices exclusive for the Jumia Mobile week.

SOURCE:CIO EAST AFRICA