Technology boost as mobile lending takes bulk of loansKenya’s financial industry continues to bear the weight of disruption from new financial technology firms as mobile loans take the lion’s share of the sector’s loan book.New industry data indicate that mobile lending platforms such as KCB M-Pesa, M-Shwari, Tala and Branch have surpassed traditional lending vehicles, particularly in household and retail loans. According to the Central Bank of Kenya (CBK), gross loans and advances increased by Sh126 billion from Sh2.36 trillion recorded in June 2017 to Sh2.49 trillion as at June 2018. Out of this, personal and trade loans accounted for 25 per cent and 19 per cent respectively, with new loans standing at Sh30 billion and Sh27 billion, the bulk of which was advanced through mobile. “If you look at KCB M-Pesa and M-Shwari we are almost lending Sh150 billion, which means almost half of the new industry is coming on mobile.” Data from KCB’s recent annual report indicates the company processed 88.8 million transactions through mobile banking as at the end of 2017, lending a total of Sh29 billion. SEE ALSO :Cost cutting lifts KCB Q3 earnings as bad loans dropCommercial Bank of Africa has leveraged on its partnership with Safaricom under the M-Shwari platform and now boasts Sh13.2 billion in net deposits and Sh95 billion in loans advanced as at the end of 2017

Source: Standard Digital January 08, 2019 21:00 UTC