Safaricom's CEO Michael Joseph. Photo: Mwangi Kabiru
The partnership between a mobile firm and a bank in Kenya has revolutionized the global mobile banking industry. The new service dubbed ‘M-Kesho’ (Swahili for future money) will allow users to operate interest earning bank accounts in their cell phones. It is a first and will, indeed go, down history books as the most innovative financial product yet.
The ‘new’ product is a graduation of Safaricom’s globally renowned M-Pesa money transfer service that has over 8.5 million registered users – who can easily be transformed into ‘M-Kesho’ customers.
According to Alexia Latortue, acting chief executive of the Consultative Group to Assist the Poor (CGAP), the launch of this unique banking product is a clear message that the poor people are in need of affordable banking products. “Mobile banking is a powerful way to deliver the services to the million people worldwide who have a cell phone, but not a bank account,” he says.
Additionally, the new banking product will make it easy for customers to access low interest rate loan facilities. To open an ‘M-Kesho’ account, customers require only 100 Kenya Shillings (just over $1). This is exactly what many people across sub-Saharan Africa have been waiting for, low cost and fast access to financial services.
Watch Video: M-Kesho, A New Mobile Banking System From Kenya (External Link)
