Currencies

Mobile banking adoption increases to 58%


Signage shows branch banking and mobile money services in a Nyeri store. PICTURES | JOSEPH KANYI | NMG

Summary

  • A customer satisfaction survey conducted by the Kenya Bankers Association (KBA) revealed that mobile banking was the most preferred channel in 2021 at 58.4%, up from 52% the previous year.
  • Mobile banking services are primarily offered through USSD codes, using basic mobile phone technology to deliver financial services to customers without the internet.
  • The bankers’ lobby said adoption had grown rapidly in the era of the Covid-19 pandemic, with banks investing more in platforms to reach customers who, in turn, were looking to reduce customer-based interactions. contacts.

Six out of 10 bank customers prefer mobile banking over other forms of banking access, underscoring the growing popularity of convenient and automated platforms.

A customer satisfaction survey conducted by the Kenya Bankers Association (KBA) revealed that mobile banking was the most preferred channel in 2021 at 58.4%, up from 52% the previous year.

Mobile banking services are primarily offered through USSD codes, using basic mobile phone technology to deliver financial services to customers without the internet.

The bankers’ lobby said adoption had grown rapidly in the era of the Covid-19 pandemic, with banks investing more in platforms to reach customers who, in turn, were looking to reduce customer-based interactions. contacts.

“The increase can be attributed to the challenges introduced by the pandemic and its containment measures which have entrenched the use of contactless banking services,” KBA said in a statement.

The use of mobile banking has also been encouraged by the reduction or removal of fees on the services, in line with guidelines from the Central Bank of Kenya as part of the regulator’s efforts to boost the uptake of cashless transactions.

Mobile banking is the only channel that recorded preference growth while the rest stagnated or declined.

The survey found that online banking was the second most popular channel at 20.3% last year, up from 23% in 2020.

In this category of Internet platforms, applications developed by banks are the most preferred. Some of the banking apps include MCo-op Cash (by Co-op Bank) #ticker:COOP, Eazzy Banking (Equity) #ticker:EQTY and SC Mobile Kenya (Standard Chartered) #ticker:SCBK.

Automated teller machine (ABM) was the third most preferred way to access banking services with 9.7% last year, down from 12% in 2020.

The bank branch was fourth at seven percent, maintaining its popularity level. Bank branches ranked fifth, dropping from seven percent to two percent. The survey is based on feedback from almost 30,000 respondents.

Mobile banking and banking apps are expected to dominate access to financial services in the coming years due to their convenience and ability to scale.

“The preference of banking apps is attributed to two main factors. First, many banks have pioneered and popularized the use of multi-purpose banking apps, which have taken over some of the banking functions previously performed by customers through mobile and internet banking,” KBA said.

“Secondly, the penetration of internet-enabled devices and networks continues to grow in Kenya, providing some bank customers with a new preferred digital option for transacting.”

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