FEATURED STORY

CBK report shows banks struggling to contain competition

Share
The Central Bank of Kenya's (CBK) statistics have shown that money in circulation outside banks has increased. www.businesstoday.co.ke
The Central Bank of Kenya's (CBK) statistics have shown that money in circulation outside banks has increased. Photo/Business Today
Share

Banks are facing increased competition for business in the country as Kenyans continue to explore options tailor-made for them, data contained in the 2019 FinAcess Household Survey shows.

The report co-authored by the Central Bank of Kenya (CBK), the Kenya National Bureau of Statistics (KNBS) and the Financial Sector Deepening Kenya (FSD) shows that fewer Kenyans are depending on traditional bank accounts by the year as mobile money accounts and digital loans apps continue to grow in popularity at the expense of brick and mortar banking.

According to the report, mobile money account usage has grown from 27.9% in 2009 to 79.4% in 2019 compared to growth of traditional bank accounts which have grown from 14.0% in 2006 to 40% in 2019.

Conversely, the popularity of digital loans apps has grown from 0.6% in 2016 to 8.3% in 2019.

 

“As the country becomes more digitized, the survey results show that the frequency of transactions through mobile money increases while that of bank account reduces,” reads the report.

The report states that the high frequency in the use of mobile money, mobile banking and informal service providers on basis, could be a reflection of increasing liquidity needs, convenience and ease of access by Kenyans.

{Read: Uhuru, Ruto salaries increase antithesis of the president’s public stance}

Further, the same trend manifests itself across both genders with mobile money accounts being the most popular mode with males and females.

More men are now using mobile money accounts currently at 82.6% from 75.5% in 2016 while the popularity of this mode among women has grown by a paltry 3.1% from 30.6% to 33.7% in 2019.

{See also: Jobs authority facing mission impossible finding employment for tarmacking Kenyans}

 

The report only compares the popularity of digital loans apps with males and females in 2019, leaving out statistics that could have given indicators whether the apps have eaten into traditional banks’ market share.

2 Comments

  • Whеn someone writes an piee of writing he/she maintains thе plan of ɑ user inn his/heг mind that how
    a uѕer can be awware ⲟf it. Ѕo that’s why thіs post iis ɡreat.
    Thanks!

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
Dr Peter Ndegwa Safaricom Group Plc CEO
FEATURED STORY

Safaricom Secures US$138m from Standard Bank for Its Ethiopian Subsidiary

Safaricom Plc, a leading telecommunications firm, has sealed a $138m funding deal...

NSE to benefit from US Fed Reserve Rate Cut
BUSINESSFEATURED STORYMARKETSSTOCKS

NSE to Benefit from Federal Reserve Rate Cut, Renewed Foreign Investor Interest

NSE (Nairobi Securities Exchange) is expected to benefit from a recent cut...

Governor of the Central Bank of Kenya , Dr Kamau Thugge
BUSINESS

CBK Reports Stronger Cushion as Forex Reserves Hit 12 Billion Dollars

The Central Bank of Kenya (CBK) says the country’s foreign exchange reserves...

Outside Central Bank of Kenya (CBK) headquarters in Nairobi.
BUSINESS

CBK Slashes Benchmark Lending Rate to 9 Percent

The Central Bank of Kenya (CBK) has cut the Central Bank Rate...