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.
In order to understand the take‐up, use, and impacts of M‐PESA in Kenya, US based Principal Investigators William Jack (Georgetown) and Tavneet Suri (MIT Sloan School of Management) conducted a set of five surveys across Kenya, starting in yearly between 2008 and 2011, with a fifth survey conducted in 2014 to look at the longer-term impacts of M-PESA.
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.
Over 250 policymakers, industry players, regulators, lecturers, students, financial sector analysts, development practitioners and other guests gathered at the National Museum’s Louis Leakey Auditorium on Thursday 9th February 2017 for the 3rd FSD Kenya annual lecture on financial inclusion.
During his delivery of the 3rd FSD Kenya annual lecture on financial inclusion, John Kay argued that the challenge for emerging economies is to avoid the mistakes of the west and to instead focus on building a financial sector that is focussed on the core needs of the non-financial economy.
Rafe Mazer was the speaker at the 2nd FSD Kenya annual lecture on financial inclusion. His presentation shared how we can develop our own “test and learn” – the way in which financial service providers and regulators collaborate to allow for new solutions – for consumer protection.