Commercial Bank of Africa (CBA) has seen its M-Shwari customer base reach 10 million since its launch on November 2012. CBA can now consider itself as the country’s largest bank by customer numbers to vindicate its innovation of offering savings and loan products through the mobile phone.
The partnership between Safaricom and CBA has seen M-Shwari deposits throughput gross over Kshs 153 billion since launch, affirming the trend in Africa of the growing convergence between the financial services and telecommunications sectors as the greatest catalyst to accelerated financial inclusion amongst the world’s under-served populations.
Backed by a dynamic mobile phone based credit scoring system, CBA has extended loans amounting Kshs 29 billion, processing an average of 50,000 loans per day over the last two years without demanding security or the need for clients to visit a bank branch to apply for for the loan.
The demographic indicators show, 59% of M-Shwari customers are male while women account for 41 per cent of the customer base, with the highest usage witnessed among 24-35 year age group. Women are however using the savings product more, while men over of 40 years are saving at a higher rate than their younger male counterparts.
How Does M-Shwari Work
The M-Shwari Deposit Account is a micro-savings product which allows you to securely store your money for a specific purpose or for an unexpected event in your life. Here are some of its features:
- No minimum balance
- No charges levied on the account
- No charges for moving money from M-PESA to M-Shwari account and vice versa
- Earn up to 5% interest
The M-Shwari Loan Account is a micro-credit product which allows you to borrow money in times of need or to complement your savings towards an investment or enterprise. A one-time fee of 7.5% is levied for each loan. Borrow with M-Shwari and start to build your credit history today.
In order to qualify for a loan all you need is to be an M-PESA subscriber for 6 months, save on M-Shwari and actively use other Safaricom services such as voice, data and M-PESA. To enquire on how much you can borrow, dial *234*6#
Photo Courtesy of noeticworld.com