KCB, Safaricom Partner to Launch 'KCB-M-Pesa Account'

KCB Group and Safaricom have today launched a new mobile banking product dubbed the 'KCB-M-PESA Account'.

KCB-M-PESA Account will enable customers to get loans using their mobile phones, the loans will be offered with a flexible repayment period ranging from one month to six months.

In addition the facility fee for the loan will start from as low as 2 per cent per month. Customers will also have the option of two fixed savings options, a fixed deposit account and a target savings account.

The product also offers access to instant loan facilities on request. The customer can also save, place standing orders or make fixed deposits on their phones.

"This is a new frontier in the evolution of the mobile money journey for both institutions that will match up the best of what East Africa's most successful mobile operator and leading bank have to offer," said Mr Joshua Oigara, CEO, KCB Group, "This product is a crucial answer to our country's effort to empower millions of Kenyans by availing credit conveniently through their mobile phones."

KCB M-PESA Account will see both Safaricom and KCB deepen their strategic partnership. In the last one year, said Mr. Oigara, KCB has seen its customer transactions with M-PESA triple to Kshs 125 billion, while the volume of transactions has grown from 10,000 a day to 100,000. Now, with a dedicated product, the partnership will widen the possibilities of what customers can do using their phones".

"Mobile technology has greatly transformed our lifestyles in the 21st century. It is increasingly making it more convenient for customers to pay utility bills, withdraw or deposit money in their bank accounts as well as borrow by the click of a button," said Bob Collymore, CEO, Safaricom.

The latest innovation, KCB M-PESA Account, will play a crucial role in deepening financial inclusion in the country and the region.

Mr Oigara further explained: "We have collated lessons from our experience as the leading bank in the region, and insights from the market to develop this proposition. With technology, customers can now enjoy credit facilities from as low as Kshs 50 to as high as Kshs 1 million instantly on their mobile phones an innovation of branchless banking as our next frontier."

To access the service, customers will be required to dial *844#, accept the terms and conditions and proceed to save or borrow depending on their needs. The customer's loan limit will be determined by a number of factors, including but not limited to, the amount of savings that the customer has, the customer's usage of M-PESA, and their savings on other KCB platforms.

"With the dynamic industry and growing competitor environment, the customer is seeking more choice in mobile banking. The customer is seeking for more value and affordable mobile banking solutions in the market," Oigara said adding that Kenyans paid bills worth Kshs.1 billion through M-PESA to KCB, deposited Kshs 59 billion and withdrew a total of Kshs 66 billion.

SOURCE:CIO EAST AFRICA