NAIROBI, Kenya, Dec 6 – Commercial Bank of Africa (CBA) and Safaricom are today celebrating the 5th anniversary of M-Shwari.
M-Shwari, Kenya’s first mobile lending and saving solution, provides financial services to over 21 million Kenyans and more than Sh30 billion disbursed in loans over the 5 years.
According to the bank, the average loan per customer is an average of Sh3,300 per customer while savings by customers currently stand at more than Sh12.6 billion.
From December 11, the bank says customers who have exhibited good savings and loan repayment behaviour will now enjoy better interest rates and loan terms.
CBA says this move is consistent with the industry direction to improve customer access and cost of credit to customers that have a positive credit history.
“We shall also be introducing a rebate on the M-Shwari facility fee to all M-Shwari customers that repay their loans within 10 days,” said Isaac Awuondo, Group Managing Director, CBA.
Awuondo says the financial product is an illustration of investment in research, understanding of customer behaviour and benefits of leveraging technology to effectively address customer needs.
“M-Shwari has provided a banking service that is convenient, accessible and secure that has proved to be a very relevant substitute to the informal savings and credit alternatives that were used across the country, before its launch. M-Shwari has now been rolled out to four other African markets, embraced by over 31 million customers,” adds Awuondo.
Safaricom’s Director for Consumer Business, Sylvia Mulinge, says that M-Shwari will soon be accessible on the Safaricom App, which currently has over 1.3 million downloads.