NAIROBI, Kenya, Oct 26 – Approximately one in every five Kenyans with a mobile money account seeks a loan.
According to a finding by Genghis Capital, there are about 6.1 million unique digital borrowers in the country, coupled with 28.3 million unique mobile users.
The study further says that with the increased competition in the Fintech space, differentiation and enhanced customer experience will be crucial in acquiring and retaining market share going forward.
“The ability to offer a diversified range of financial services on a single platform will serve as a competitive advantage for market participants in the Fintech space,” says the finding.
Genghis Capital also cautions standalone credit apps about the quick way in which traditional lenders are adopting digital financial services.
According to the firm, formal banks are adopting Fintech at a fast rate, and with a large capital backing, coupled with regulation of the standalone credit apps, the playing field will be levelled, with possibilities of acquiring the standalone apps to enhance their competitiveness with other digital banks
Banks backed by digital platforms have been offering larger loan sizes for instance, Equity Bank’s Eazzy loan’s upper limit is Sh3 Million compared to the standalone apps’ limit of Sh50,000.
Banks also have broader product offering which include micro-insurance, savings, share trading, commercial banks, through sustained marketing can compete effectively with and even outperform the current standalone credit apps.