On Thursday 3rd September 2020, the Central Bank of Kenya (CBK), the Kenya Bureau of Statistics (KNBS) and the Financial Sector Deepening Trust (FSD Kenya) hosted a “FinAccess Datafest” webinar, live-streamed to a global audience on YouTube.
Starting with microcredit in the late 1980s, there has been a growing movement of multilateral institutions, private foundations, non-profits, corporations and governments that aims to provide formal financial services to low-income market segments around the world.
Since the launch of M-Shwari in 2012, the number of digital lenders and loans disbursed has grown substantially. Advances in credit scoring, few regulatory barriers and the widespread use of mobile phones and mobile money have enabled growth of the digital lending industry, giving borrowers a quick and convenient option for credit.
Digital credit has been instrumental in granting formal credit in ways that were not conceivable a decade ago. It has provided individuals with the tools to manage their day-to-day needs and working capital for small enterprises.
On the 5th of September 2019, the Financial Sector Deepening (FSD) Kenya and the Consultative Group to Assist the Poor (CGAP), held a stakeholder validation workshop in Nairobi, where they presented the findings of a research study that identified seven key financially underserved segments of the Kenyan population and discussed the potentially viable business cases and policy implications that financial market players could tap into.
In April 2019, the 2019 FinAccess Household Survey revealed that Kenya had made extraordinary strides in financial inclusion. While FinAccess 2019 shows that financial inclusion has peaked at 83% among Kenyans, its findings also evoke poignant questions.
Kenya aims to become a middle-income country by 2030, delivering a high quality of life to all. Finance plays a central role in our economy, facilitating trade and underpinning the efficient pooling and allocation of resources and risk.
In countries as diverse as the United Kingdom, India, and Mexico, there is momentum to increase consumers’ ability to access, manage, and control their digital identity and history.
The financial services for the poor, or more specifically financial inclusion, industry has realised in the recent past that more and better information about its target client-base is essential to delivering services effectively.
Mystery shopper exercises carried out over several weeks in 2015 and 2016 mirrored a typical customer’s journey in which most customers obtain information on banking from branches. But despite visiting over 30 bank branches, customer care representatives, bank websites, enquiring from colleagues and friends, we still couldn’t get consistent pricing information.
This report outlines the findings from a two-year study by FSD Kenya to understand the costs for banking services in Kenya. Two rounds of mystery shopping surveys were completed in October and November of 2015 and 2016
to build a database and measure the costs for basic bundles of transactions such as opening, running and closing bank accounts.
Do you know how much it costs to run your bank account? It’s no surprise that many of us do not know the cost of banking in Kenya. Pricing information is not easy to find and sometimes even staff at bank branches do not provide accurate information.
Banking remains the largest sub-sector by assets and the most systemically significant in Kenya’s financial services sector. Developments, especially those enabled by technology, have brought a sizeable number of new, mostly poorer and vulnerable first-time consumers into the market.
I spent a week in Kenya, courtesy of Financial Sector Deepening, an initiative of a number of aid agencies, including Britain’s Department for International Development, the Swedish government, and the Gates Foundation.
Just what is finance for?
On Wednesday 8th February 2017, John Kay met with 18 financial sector industry leaders to discuss this question and the future of finance in Kenya.