A report by the Sterling Capital analysts reveals that on average, Kenyans have reduced the numbers of debit cards transactions from thrice per month to just once per month. Preferring instead to transact via the mobile banking channels, currently spreading throughout the country.
Much of this shift can be attributed to the move by the Kenyan government to cap banking sector interest rates, forcing banking institutions to seek cost-cutting measures. Resulting in a push effect; driving more customers in search of alternative banking solutions such as the mobile banking services.
Stats by the Kenya Central Bank show 17.6 million card transactions in September 2016, compared to 33.9 million back in February 2013, during the inception of mobile banking. The cards include ATM, charge, prepaid, debit, and credit cards. The total value worth of card transactions dropped to Ksh 115.6 billion this year, up from Ksh 149.3 billion in February 2013.
While the monthly mobile banking transactions worth has more than doubled, with September 2016 recording 130.7 billion compared to 53.5 million in February 2013.
The sub-Saharan Africa banking report by Sterling Capital reads in part:
“The use of mobile technology …read more