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Enhancing Financial Inclusion With Absa Bank’s Timiza

by Femme Staff

Financial inclusion is not just a buzz word. It is a powerful economic tool that is critical for social equity and development. When as many people as possible from all classes and genres of life have access to banking services and credit, what follows is empowerment through increased entrepreneurship and growth.

One avenue that is steadily gaining popularity is Absa Kenya Bank’s Timiza, a mobile banking wallet offering tailored financial services and attractive interest rates on loans and savings. It is clear to see the growth and impact of Timiza, with 5 million users having registered so far.  This is testament of a product that is well accepted due to great delivery of services.

Timiza is Absa’s virtual banking solution where users have access to solutions like instant mobile loans, saving solutions, easy airtime purchase, personal accident and last expense insurance, a platform to pay utility bills via Tills and Paybill services, and M-Pesa deposits to Timiza among other benefits.

“We are committed to banking the unbanked and have redesigned our Timiza product to make it easier for people and small businesses to access savings and loans.” – Absa Bank Kenya PLC, CEO, Abdi Mohamed.

Currently, Timiza offers mobile loans of up to Kshs. 150,000 with a 30-day repayment period. Customers can also borrow up to Kshs 1 million and repay within 12 months. Timiza has good incentives for early repayment, good transacting behavior and customer loyalty. The maximum amount a user can transact in a single transaction on Timiza is Kshs.250,000 while the daily transaction limit is Kshs.500,000. The cash can be accessed via MPESA or at an Absa ATM.

“The more you transact and save, your loan limits increase, providing a flexible and dynamic borrowing experience,” Steve Omamo – Absa Bank Kenya’s Head of Digital Channels.

For insurance, users can pay as little as Ksh.42 monthly and be covered for upto Ksh.100,000/- in personal accident cover and last expenses. Timiza’s users are assured of safety of funds and services, since it has the solid background of Absa Kenya which is one of the most solid banks in the country.

Interest rates:

Timiza users get an attractive interest of up to 9% annually on saving as little at Kshs 100. Perhaps this is what is driving the increase in loan disbursements through the platform. Since Absa Bank Kenya introduced Timiza in 2018, the mobile platform had advanced over Kshs 65 billion in loans as at 30th September 2023. In fact, during the first nine months of 2023, about Kshs 14.8 billion in loan was advanced through Timiza, translating to about Kshs 54.22 million shillings daily.

In addition, plans are underway to evolve Timiza into a standalone mobile only financial services business that facilitates savings, loans, payments, and insurance services.

“We will target to win in the Affluent segment, advance our relevance in core middle segment and penetrate the mass and youth segments to secure the next generation of core middle customers,” says Absa Bank Kenya’s Head of Digital Channels, Steve Omamo.

Timiza is available on both smartphones, through the Play Store and iOS, and feature phones via USSD code *848#.

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