Financial institutions asked to be more creative

By WINSLEY MASESE

Nairobi, Kenya: Financial institutions have been challenged to devise products targeting specific market segments to increase the number of Kenyans accessing financial services.

Central Bank of Kenya Governor Prof Njuguna Ndung’u noted that improving product portfolio in the market is key to increasing financial inclusion.

“Banks have to increasingly diversify their product portfolio with specific characteristics to attract a certain market segment such as women,” he advised. The banking sector regulator said that consumers are moving towards the use of broader portfolios of financial services, hence the need to diversify.

“The consumption of the portfolio of financial services and products clearly shows that consumers require choices,” he said.

He underscored the need to maintain the diversity and encourage competition and transparency of different financial services providers amongst the different market segments and focus groups.

“The institutions have to increase their transparency levels by disclosing the level of the deals they are entering and this has a pricing on it,” Ndung’u said during the launch of the Financial Access National Survey 2013.

IMPROVED EFFICIENCY

The study was conducted by Financial Sector Deepening (FSD), a Trust supporting inclusive financial markets in Kenya, and the CBK.

Ndung’u called for improved efficiency, reduction in transaction costs and promotion of development of financial services and products   to improve financial inclusion in the country. 

FSD director David Ferrand said the current level of financial inclusion needs to be sustained.

“Financial inclusion stands at 75 per cent and there is need to improve so that we have the remaining 25 per cent in the system,” he said, 

Compared to other means, cell phone usage in enabling financial acccess increased from 13 per cent in 2009 to about 29 per cent this year.