Kenya’s Equity bank has struck yet another milestone with over 60 percent of its transactions value recorded outside traditional branches. According to data released by the financial institution, branches only accounted for 37.4 percent of total transactions, a development that has never occurred before. The move shows a consistent trend in adoption of digital payments which has been the case here in Kenya for the longest period, especially after Safaricom’s MPESA became the default payment system.
Data released by the bank as it announced its 2020 full year financial results indicate that more than 98 percent of transactions happened outside the banks premises, with an estimated 85 percent of all transactions recorded on mobile devices through the self-service mobile banking facility.
Agency and merchant banking modes were only able to cater for about 12 percent of those transactions. Kenya and the world over have witnessed increased adoption for digital payment systems especially with the current pandemic. According to data from the institution, Pay with Equity solutions grew by 31 percent, while its value grew to KS 2 trillion, accounting for 58 percent increase from a previous KS. 1.3 trillion.
Borrowers also preferred mobile based channels, accounting for 97 percent of loan request during the same period. The data outline how customers preferred accessing loan facility through mobile devices using platforms such as Eazzy App, Equitel, Eazzy Net and *247#.
With channels such as USSD code *247#, customers can access loan facilities like Eazzyloan up to KS 250,000. The repayment period is usually within a month with the possibility to take up to 3 loans at the same time.