I always get surprised by Bankers since they always think they are still in control of the market. Indulge me for a moment, in Kenya we currently have 43 banks, 2 mortgage finance institutions and 122 forex bureaus. With a population of approximately 36 million only about 4.5 million people have bank accounts, (3 million being at Equity bank). Another 3 million people operating an account or a form of money saving through a sacco. Thus means the total number of banked Kenyans are less than 10 million which is less than 1/3 of the total population.
It is quite interesting when you hear that Bank’s are up in arms over MPESA a service that has registered over 5 million accounts in less than 2 years. Claimed to be a banking product i would classify as a transactional product that helps pay money in a very flexible way. It also helps that one can store money on thier MPESA virtual account which one can access at any time from anywhere in the country. With the new Zap service which also enables account withdrawals and inter account transfers.
For a long time banks have been happy to choose who they want as clients as the market dynamics kept on changing. Now its no longer customers who need the bank but rather the bank that needs customers. That’s why it would be a wise decision for banks to embrace products like Mpesa and Zap to increase thier revenue streams.
For one I’m quite happy that finally the Banking industry is getting more and more customer driven…