[ad_1]
Author: DAVID THUKU
More photos from this author
Economic growth and productivity quickly replace political quarrels that had nearly consumed the Kenyan people, at a time when the country has revealed a leader in technological innovation.
There is a correlation between the increase in financial technology solutions and productivity.
And this cascades to the individual: the more we embrace digital banking, the more time we have to do much more, improve productivity and contribute to economic growth.
Imagine this poultry farmer in Kitui. He no longer has to go to the local college where he provides eggs to collect his payment; he does not have to deposit it in his bank either.
Instead, the college sends him his money by mobile payment and deposits it directly into his bank account through the digital bank.
To buy poultry food, he transfers the money from his account via the platform and sends it to the supplier's account.
An operation that would have taken precious time away from the farmer's core business is done without leaving his farm.
Digital banking not only revolutionizes financial services, it also gives users more time to build their nation.
The mobile money transfer service, of which Kenya has been recognized as the pioneer of driving for innovation.
All mobile phone companies in Kenya have a mobile money transfer service and payment. Mobile subscriptions, of which Kenya's Communication Directorate's financial report for 2017/18 shows 41 million, show a potential for deepening financial inclusion.
Ability to manage an electronic wallet that allows them to save money via the platforms of their mobile phone.
They also establish their solvency profile which allows them to access loans without completing or signing a form. According to FSD Kenya, more than six million Kenyans had access to a technology capable of delivering microcredit in seconds and building up a credit history allowing them to access higher and cheaper loans. This is very convenient for banks and even more so for the consumer.
But mobile banking is only one of the many digital platforms available that complement traditional banking channels to offer Kenyans the convenience of doing banking anywhere and anytime.
The banking agency, for example, offers the convenience of accessing a physical point of sale in the locality of a user
This is a function of commercial banks and is regulated by the legislation of the Central Bank of Kenya, allowing banks to contract third parties. retail networks as banking agents.
Although technological change introduces new risk genomes, large investments in digital security by all actors have largely mitigated this.
This is also supported by government regulations – for example the requirement that mobile phone users have their SIM card registered by service providers prior to activation.
[ad_2]
Source link