Now that cellular technology has overcome major infrastructural barriers, how are we fairing concerning wireless financial services (cell phone banking) in Kenya?
While you could make the case that the banking sector has finally embraced wireless financial services, are we really there? Looking at this from a customer-specific perspective, the indication is that we have only done so partly.
The reception of mobile phones and the internet in Kenya has been awesome. A large percentage of Kenyans own one. In Kenya, certain banks like the Standard Chartered Bank blazed the trail by introducing mobile banking earlier on.
Nevertheless, has mobile banking brought banking convenience to customers? Alternatively, is it yet to? Since all customers are convenience-driven, I will use convenience as a KPI in my evaluation efforts.”
In Kenya, the conventional internet service has failed to deliver such convenience to the larger banking population. Instead, banks offer it as to their corporate and high net worth customers as a benefit. This may have something to do with the psyche of the local bank customer who has a fear of the unknown when it comes to using internet banking; the associated cost, complexity as well as the fear of fraud.
Perhaps, this explains why many financial service providers have turned to mobile telephony as the best way to introduce convenience and reach the unbanked. It is cheaper, simple and accessible. Currently, mobile telephone service providers have an edge over banks, as they have been able to parlay this income group into customers.
The innovative mobile money solutions transact and hold a huge amount of cash in Kenya. Most are a partnership between banks and mobile phone service providers as opposed to individual banks having a dedicated customer service outfit as part of their operations.
When the full potential of wireless banking is unleashed, it will be possible to access your account information through your cell phone, check account balances and transfer money between accounts in real time.
In addition, bank customers can change PIN numbers and view a mini bank statement for their most recent transactions. They can also transfer funds in-between personal accounts, request Bank Statements, enquire on Foreign exchange rates, request a cheque book etc. All this can happen without the assistance of a live Customer Service representative.
Certain things are working in the favor of implementing wireless banking in Kenya today. A large percentage of Kenyans now own mobile phones and the onus is now on individual banks to translate the popularity of mobile phones into banking convenience.
Financial inclusion remains a challenge that banks must address to realize the full potential of wireless financial services. Banks must ensure that potential customers (including the lower income group) can open an account at a brick and mortar bank.
Given the reception of mobile phones and the internet in Kenya, I am sure that there is a large group of hopefuls poised to explore this phenomenon when it is finally here.
In my opinion, wireless financial service will mature when cellular banking is a standard feature with every deposit account.
No comments:
Post a Comment