Credit firms urged to improve digital borrowing experience as mobile subscribers increases

Genghis Capital has advised credit apps to adopt proper ways of accessing credit since there is a growth in which traditional lenders are implementing digital monetary services.[Photo: Courtesy]

Genghis Capital has said that about 6.1 million mobile digital borrowers have been recorded with an inimitable 28.3 million mobile subscribers.

The report further believes that an increase in FinTech space, differentiation and improved customer experience will be crucial in getting and maintaining customer base going forward.

“The ability to offer a diversified range of financial services on a single platform will serve as a competitive advantage for market participants in the Fintech space,” reports the finding.

The firm has however advised credit apps to adopt proper ways of accessing credit since there is a growth in which traditional lenders are implementing digital monetary services.

“Formal banks are adopting Fintech at a fast rate, and with a large capital backing, coupled with regulation of the standalone credit apps, the playing field will be levelled, with possibilities of acquiring the standalone apps to enhance their competitiveness with other digital banks” indicated the firm.

Banks such as Equity is offering digital finance service, Eazzy loan’s whose credit access goes for an upper limit of Sh3 Million compared to the standalone apps’ limit of Sh50,000. Other service include savings, micro-insurance, commercial banks and share trading which standalone credit apps don’t offer.

Financial Sector Deepening (FSD) Kenya report conducted on mid 2017 indicated that Mshwari disbursed Sh230 million from the time it was started in 2012, KCB offered about 90 percent of its loans through KCB M-Pesa while Equity Bank offered Sh57 billion via Equity Eazzy app since 2014.

The survey further indicates that, 27 percent of Kenyans (Approximately 23.5 million) borrow digitally with 51 percent of Kenyans who own mobile phones never borrowed digitally.