Barclays Bank customers to access instant loans via mobile phone

NAIROBI, KENYA: Barclays Bank of Kenya (BBK) has launched a virtual banking product that will enable customers’ access loans and pay utility bills using their mobile phones.

According to BBK Managing Director Jeremy Awori, the product dubbed ‘Timiza’ will act as a mobile-based virtual account giving both its customers and non-customers a chance to borrow 30-days loan at an interest rate of 6.17 per cent.

“All studies show that more people want to do their banking on phone. We want to be as relevant as possible to the needs of customers and this is demonstrated in this digital product that offers flexibility to customers,” said Jeremy Awori, Bank CEO.

Speaking on Fiday in Nairobi during the launch, Mr Awori added that branch transactions could reduce to as low as 10 per cent from the current 35 per cent of entire transactions as more customers seek faster, efficient and consistent digital products.

The new product, he said, primarily targets young entrepreneurs and individuals who need quick access to capital in order to manage liquidity. It will be available through an android application as well as short service code.

Customers will access instant loans of up to Sh150,000 depending on their individual credit score even as Awori hinted at increasing this as uptake rises. The entry of Barclays into this space hots up competition for Commercial Bank of Africa’s Mshwari product.

By partnering with Safaricom, Awori said that it will be possible to ride on the over 29 million registered users of Safaricom line to boost revenue for the bank while offering digital solution to customers.

“About 50 to 60 per cent of people across age groups prefer to do their transactions on their phone or a combination as social pressures make it hard for people to visit branches,” said Awori.

Through Timiza, it will also be possible to deposit funds from M-pesa to Timiza account, pay utility bills, send and receive money directly to other Timiza users and also purchase airtime. The app also comes embedded with a taxi hailing option in partnership with LittleCab.