In a new frontier in the evolution of the mobile money journey, KCB and Safaricom has launched KCB-MPESA account a platform that will enable customers to get loans using their mobile phones 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 month. Customers will also have the option of two fixed savings options, a fixed deposit account and a target savings account.
The mobile banking product with the most comprehensive features yet in the market has been acknowledged as a crucial answer to the country’s effort to empower millions of Kenyans by availing credit conveniently through their mobile 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. With the newly launched 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.
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. As expected with the product with the most comprehensive offering, the partnership will widen the possibilities of what customers can do using their phones.
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.
The KCB M-PESA Account has flexible repayment periods from one month to six months, levies affordable interest rates starting from 2% while offering access to instant loan facilities on request. The customer can also save, place standing orders or make fixed deposits on their phones.
Safaricom and KCB Group entered into the strategic partnership in June, last year, and launched their first joint proposition, Biashar@Smart, which offers a suite of technology and financial solutions, geared at enabling SMEs to grow to the next level.