By FREDRICK OBURA
After years of growing cases of mistrust and subsequent loss of clients, local investment banks could now be headed for better business next year, thanks to a new technology.
Suntra Limited, a leading investment bank in the country, has launched a system to enable anyone with CDS account to send orders directly to Nairobi Stock Exchange (NSE) market from their mobile phones.
The application, known as Suntra Real Time, would at the same time allow an investor make payments for his or her orders electronically in real time. The development will also see the firm’s clients change transaction time from the current seven days to just five minutes.
"Our sector has been dotted with unethical trading practices by some players. This has led to mistrust and lose of business. We would like to fix this, restore confidence and activate transactions at the bourse," said Suntra Investment Bank Chief Executive Officer Michael Gichohi.
"Through the system, investors would have full control of the movement of their investment funds, thereby eliminating incidences of fraud." He said the efficiency, transparency and convenience offered by the new system would attract more investors to the online trading system.
Customers will be required to open an account through agents of Tangaza, the service’s provider, who will capture fingerprints, photos and identification card details of customers as a security measure.
Speaking during the launch, Finance Permanent Secretary, Joseph Kinyua said, the Government was convinced that such innovation would improve liquidity at NSE.
FINANCIAL INCLUSION
"With 18 Million mobile subscribers in the country, Suntra Real Time will serve as a good platform through which the subscribers can trade in shares at their convenience, it could promote financial inclusion, and provide a leveled playing ground for market players," he said.
The PS urged capital market to adopt various technologies in its day-to-day operations to enhance efficiency and further promote transparency and accountability necessary to inspire confidence amongst investors. He noted that achieving a high and sustained growth would be possible through effective and sustainable mobilisation of domestic resources, especially through the capital market.
"The capital market will be expected to be at the fore front in mobilising resources to fund productive investments in priority development areas of our Vision 2030. It needs to leverage on technology to enhance efficiency and further promote accountability to build more confidence among our private investors," Kinyua said.
Both the Central Bank of Kenya and Capital Markets Authority have approved the trading system.
