On a predominant note they have arrived at the show quite late on the late 1960s, but over the period of growth, they have not idle backed, instead of established reputed financial institutions with sorted regulatory, policies and norms to promote sustainable socio-economic development.
Down the period subsequently started pioneering in equity finance, short-tenure finance, real estate development, trade finance, asset leasing.
So, they have cultivated diverse client base across a region from then on started driving the show for both public and private sector that enabled broaden its reach and started giving birth to a new generation of entrepreneurs.
Apparently, these paces strengthened and fostered the growth of the economy of East African countries. On a fateful note, the ray of technology disruption caused the meltdown phase which drained the diverse client base eventually across the region.
Never let a Good Crisis go to waste:
(by rahm emanuel)
That moment is now for East Africa, native techniques have hastened banking consolidation in the region, but at the same time the buzzing of ‘Uber and M-Pesa’ Moment driven by a mobile platform which gave legitimate growth across the region. Unlike in recent years, there are lots of captivating fine tech startups has arrived.
The region is enjoying a startup rejuvenation by the digitization. Though small by comparison, many of these startups have legitimately increased their customer bases at a faster clip than local banks.
As reported in the The Daily Nation, in 2015 Equity bank did 3x more mobile banking transactions than agency transactions(151m vs. 51m) and received almost 4x more loan applications from phones than physical branches(1.9m vs. 533k).
Kenya Commercial Bank (KCB) reported a similar phenomenon with 70% of transactions driven by mobile channels.
Just SMS away:
M-Pesa has added essence to the mobile channels in the hood which was widely celebrated mobile payment platform released by Safaricom. Here, payments have gone invisible and dragged to the background which leads cashless life.
These Techo-pay accelerators will cater sustainable opportunity to scale up the financial operations elegantly which caps economy growth. According to statistics, East African banking sector has tightly coupled economic growth prospects. Which includes healthy profits, strong capital, protection against downside risks, support credit quality. Technology has influenced all micro factors in banking. This has the potential to shake the space a bit.
