Mobile banking low, says study
Techno Telecoms Retail Training Manager Dickson Ireri (left), Microsoft East Africa Product and Device Manager King’ori Gitahi and Techno Accounts Manager carrier business Anne Nyokabi follow proceedings at the start of Jumia Mobile Week in Nairobi on June 2, 2015. PHOTO | SALATON NJAU | NATION MEDIA GROUP
What you need to know:
- The study notes that this reflects a disconnect between banks and their customers despite the fact that 59 per cent of the people own smartphones against a mobile penetration rate of 83 per cent.
- Kenya Commercial Bank, Barclays Bank, Equity Bank and Commercial Bank of Africa are among lenders that have adopted online banking, targeting customers who use mobile gadgets to access their accounts.
- They are using unstructured supplementary data services to provide mobile banking. This is a protocol used by GSM cellular telephones to communicate with the service provider’s servers.
Only two in every 10 people use smartphones for online banking even as lenders implement the platform to increase profit margins, says a new survey.
The study notes that this reflects a disconnect between banks and their customers despite the fact that 59 per cent of the people own smartphones against a mobile penetration rate of 83 per cent.
It said a majority of those who have the gadgets use them for social media purposes.
African online retailer Jumia Managing Director Parinaz Firozi said the over 500 respondents interviewed in Kenya say they doubt if online banking is secure.
“It takes a while for people to gain trust; they do not also want to lose money as they transact online,” Ms Firozi said during the release of mobile banking report in Nairobi yesterday.
Kenya Commercial Bank, Barclays Bank, Equity Bank and Commercial Bank of Africa are among lenders that have adopted online banking, targeting customers who use mobile gadgets to access their accounts.
Speaking during the forum, product manager Microsoft East Africa Kingori Gitahi said banks have not been aggressive in marketing their services. They are using unstructured supplementary data services to provide mobile banking. This is a protocol used by GSM cellular telephones to communicate with the service provider’s servers.
“They have launched applications and have online platforms where customers can transact but the opportunity is not maximised; they rely on telecommunications for mobile banking services,” said Mr Gitahi.
Jumia also launched a mobile week during which smartphones will be sold at discounts.
