The growth in reliance on mobile money services in Kenya has grown ten folds since as early as in 2006.
Safaricom has continuously pushed access to financial services in the last decade which is largely attributed to the broadened financial inclusion and disruption in the banking sector.
As a company, Safaricom set up a war. And they came to the warzone heavily armed to dethrone banks and for sure Kenyan banks have lost out on payment-related revenue as Safaricom intensifies its structures on its peer-to-peer payments services, mpesa.
To date, banks still in the fight and have opted to offer higher value-added loans and savings accounts through the mobile money platforms. again which Safaricom’s Mshwari Lock and savings account still gives the Lenders a headache. This tells the banks one thing; RELATIONSHIP WITH THE CUSTOMER IS KEY, something Safaricom has mastered so well.
The other thing banks are yet to nip on, as the market matures, direct access to customers and their data. leverage analytics to drive profitability, find customers and compete.
In the old days, it was ok for banks to offer personalized, hands-on services. Our Kenyan Banks still wait for consumers to approach them with specific needs. But times have changed, and banking providers of all sizes must now proactively approach accountholders. Banks and credit unions must arm themselves with data to create cross-selling conversations and stimulate needs-based opportunities.
TILL THEN, Safaricom will run these streets!