survey
Banks stall on State's pension plan Next Story
Petroleum tax 'will hurt economy' - KEPSA Previous Story
You are here  » Home   » Business News

Equity subsidiary eyes mobile cash

By Frankline Sunday | Published Tue, August 21st 2018 at 00:00, Updated August 20th 2018 at 19:23 GMT +3
The new subsidiary Finserve consolidates the bank’s mobile banking services such as Equitel and the Eazzy Banking applications under one roof. [Courtesy]

Equity Group Holdings has spun off its fintech subsidiary in a bid to get a larger slice of the fast-growing mobile lending market.

The new subsidiary Finserve consolidates the bank’s mobile banking services such as Equitel and the Eazzy Banking applications under one roof.

ALSO READ: Ghana backpedalling out of banking crisis

“Finserve will be an independent commercial fintech that will provide technology solutions,” explained Equity Group Chief Executive James Mwangi.

Mr Mwangi said more than 90 per cent of consumers now access transactions and services through online and mobile platforms, making it necessary for banks to invest more in technology.

“Having seen the revolutionary impact that fintech capabilities have brought to the bank, we have taken a deliberate strategy to make Finserve an independent commercial subsidiary that will focus on delivering solutions to propel the African economy,” he said.

This is likely to stoke competition in the mobile lending sector that has seen investors pump billions of shillings into building mobile lending products for the Kenyan market.

A recent study by Consumer Insight indicated that mobile lending has become the first source of credit for Kenyans after friends and families, surpassing bank loans.

Know if news is factual and true. Text 'NEWS' to 22840 and always receive verified news updates.

Earlier this year US-based mobile lender Tala announced a Sh6.5 billion round of financing targeted at boosting the firm’s loan book, 93 per cent of which comprises Kenyan borrowers.

The San Francisco-based fintech Branch, which launched operations in Kenya, announced raised Sh920 million in funding.

Fintech’s have gained an edge over traditional lenders by leveraging data analytics to develop the credit profile of lenders and calculate risk.

ALSO READ: How banks defy interest rate cap to rake in big profits

Finserve Managing Director Jack Ngare said the firm would utilise data analytics to tailor-make new products for the local and regional market.

 


Would you like to get published on Standard Media websites? You can now email us breaking news, story ideas, human interest articles or interesting videos on: [email protected]

RECOMMENDED