It’s been a year since KCB and Safaricom launched their joint partnership that saw the creation of mobile-phone based, micro credit and savings product dubbed KCB M-PESA.
I was able to do a short interview with KCB MPESA Team and I started by asking;
How does it feel to accomplish nearly Ksh. 8 Billion in mobile loans and is it a useful achievement since the joint partnership begun one year ago?
Thank you. This has surely been a world of new learnings about how customers need and consume credit.
Are you targeting KCB customers with mobile loans given that actual bank loans are expensive for people?
We are targeting all customers who want convenience. For our KCB customers, we have even unified their mobile banking experience together with KCB MPESA through our revolutionary mobile APP. We are soon also launching the service on the customer’s sim card.
Out of the 5.2 million customers who are using your services, do majority of your customers opt for mobile loans for the purpose of personal loans or business loans?
This is where it gets interesting. The repayment rate of up to 97% does indicate to us that customers are generating some revenue with the loans.
How are the repayment rates on the mobile loans and are there any challenges that either KCB MPESA or customer have faced with the mobile loans?
As mentioned previously, these are now up to 97%. Customers like these loans to be short. A month to be exact, together with an opportunity to extend the term themselves based on their circumstance.
How do you calculate the amount an individual can borrow when it comes to minimum and maximum borrowing?
This is a proprietary dynamic and completely automated process that we hold dear. We refer to it as algorithm banking.
Finally, are there any upcoming exciting features or development for KCB MPESA service and what can your customer look forward to in the future?
Customers can look forward to even more convenience by accessing the service on the sim card menu and the KCB App, better repayment term options and even better savings offerings. We encourage customers to take advantage of the product and push all mobile money values they are not using at the time for the service to better understand them and offer even better limits.