Kenya, amongst other Sub Saharan African countries, has been the centre of financial technological innovation offering unique financial services that have captured the Kenyan populace. Financial technologies (FinTech) are bringing traditional banking services like borrowing, lending, loans and credits, to the largely unbanked (about 60% ) populations. This level of financial inclusion has been gradually but steadily increasing in the East-African country making it a frontrunner.
Kenya is particularly well suited for FinTech disruption. It has underdeveloped financial infrastruture. Traditional banking methods like banks and ATM’s are not available to the majority of its people. This gap has been highly fortuitous for Fintech Companies. Adding to the equation positively is the level of mobile penetration in the country. The proportion of unbanked and underbanked citizens combined with a substantial mobile penetration rate of 44% have laid a fertile foundation for the expansion of FinTechs.
FinTech company are the major contributors to financial inclusion in Kenya. A significant example of this impact can be observed where a large mobile payment
The provider has revolutionized the way the nation is making payments to such an extent that 45%3 of the entire nation’s GDP was processed through its infrastructure. The growth potential of the expanding payments sector is emphasized by the expectation that the total number of mobile phone connections will exceed 1 billion by 20254 within a population of approximately 1.3 billion, as reported by EY
Such is the impact, more Kenyans are utilizing quick and convenient mobile lending platforms for just not making bill payments, they are also actively borrowing at higher interest rates only for consumption. Small and medium businesses are able to thrive due to seamless mobile integration for payments.
Finserve – One of the Largest Fintech company in Kenya is driving the growth story
Mobile payment gateways and payment integration API’s are financial services tools that help online businesses thrive and offer consumer-centric services. Top Fintech companies like Finserve of Equity bank are providing such financial services tools like mobile payment gateway called Jenga Payment Gateway and payment integration API called the Jenga API. One of the major factors to mobile payment integration is the high level of security being offered by top Fintech companies through high-level encryption.
It is Finserve’s vision to power ambitions beyond boundaries.
Finserve being a subsidiary of the Equity bank has the experience and knowledge of the traditional banking systems. They are able to bring this vast knowledge to their financial services tools – a secure, innovative and seamless platform for all unbanked population. They are also driving financial inclusion – the honour and dignity by offering access and affordability to all through their Financial services products. Their main intention with Finserve, the fintech company and its products is to transform Equity bank from “somewhere you go” to “something you do”.
With an easy, convenient option of FinTech products, they are encouraging Kenyans to move the money from under their mattresses to the financial system. This in turn will help money be accounted for the country’s GDP values.
Apart from this, Fintech companies in Kenya are all ready to collaborate with others to improve the financial infrastructure in the country. Typically, other FinTechs, SME’s and corporates are the collaborators who enable the Fintech companies to provide financial services to the end customers.
With their fluid and agile approach equipped with the latest tech such as data analytics have already transformed the financial services landscape.
With such favourable demographics, an under-represented banking sector and a lack of financial infrastructure show that the conditions for growth are promising.