Family Bank has launched a salary advance facility enabling employees to borrow up to 50 percent of their salaries via the PesaPap App.
The salary advance repayable in a one-off deduction at month-end will attract a Sh300 or 10 percent commission on salary advance borrowed, whichever is higher.
Chief operating officer Godfrey Kamau said customers can apply for salary advance at any time from their phones which will be credited to their accounts.
“Our focus is to drive convenience through our self-service channels that give customers access to funds in case of emerging demands and unforeseen emergencies through immediate access of the cash,” he said.
The bank’s new products follows the lender’s investment in building a digital platform availing full banking services to their customers from any mobile phone. The move is informed by a growing phenomenon among Kenyans who use phones to send and receive money as well as pay for goods and services.
A recent survey by FSD-Kenya, in partnership with the Central Bank of Kenya, the Kenya National Bureau of Statistics and CGAP showed that one in four Kenyans have taken a digital loan, mostly used in meeting domestic needs or for business.
Family Bank recently partnered with London-based financial technology firm, SimbaPay, enabling instant Kenya-China money transfer service via WeChat platform, also accessible on PesaPap.