Transcript Mobile Banking: The Kenyan experience - GIZ - E

Mobile Banking: The
Kenyan experience
Impressions and everyday practice
with commercial banking services,
even to remote rural communities in
Kenya
History
• Safaricom’s Mpesa in Kenya has long been the lone success story
in the M-Money universe
• Mpesa was launched 4 years ago with the hope of enticing 100,000
users mostly in rural towns
• Today it has 14million plus subscribers, facilitates payments for over
1,000 businesses, has 12,000 agents and earns Safaricom nearly a
third of its revenues
• In addition partnered with Equity Bank, I&M Bank, and Kenya
Commercial Bank to offer mobile based financial products that aim
to reach the unbanked
• Increased capacity of Mpesa in February this year by teaming with
Visa on a service that allows over 13million to pay for goods bought
online
• Also new is ‘Nunua na M-PESA’, a value-add that allows
subscribers to buy goods at outlets like clothes retailer Deacons,
Uchumi and Naivas Supermarkets
Market Overview
• With a market share of 75.9 per cent, Safaricom is the
leading provider of converged communication solutions
in Kenya - More than 16 million Kenyans use Safaricom
to call on their mobile, to access broadband internet and
to use the advanced Mobile money transfer and mobile
banking service M-PESA
• Current mobile money market size is about 15 million
users transferring Kshs. 2 billion daily – of these over 14
million are Mpesa customers
• Mpesa competes with Orange Money, Airtel Money and
Yu Cash – who have only 500,000 users collectively
• Competition is set to intensify over the next 12 months
as more companies enter the segment with an eye on
the USD 200 billion revenue to be gained from the cash
transfer service
Importance
• Kenyans rely heavily on their mobile phones to access
financial services due to the convenience and ease the
mobile phone offers. 48% of Kenyans believe mobile
finance can replace banks
• In Kenya only 23% of the population has access to a
bank account. By contrast, 14 million of our 20 million
adult population use M-PESA, transacting over Sh2
billion a day
• Mobile money transfer and mobile banking will
accelerate the development agenda - as tele-density
picks pace, the potential for economic growth becomes
significant
Future
• Cut-throat competition is expected to push tariffs to a fraction of
what is presently charged, making investment almost unattractive
given the related outlay and maintenance costs
• Safaricom keen to continue partnering with banks to offer financial
products through mobile phone based bank accounts or through
mobile banking services
• Google to partner with MasterCard, Citigroup and Verifone to offer
mobile payments on phones running android operating system Platform entails a shift from the present model that is dependent on
SIM cards and making it available to all users of android powered
phones
• A partnership between Airtel money and MasterCard to enable
customers make purchases online is yet to be formally announced
• New products expected from Ericsson, Visa and Nokia
• African operator revenues from money services are set to rise to
more than 5% in 2015, representing a USD3 billion opportunity