A survey carried out by the Kenya Bankers Association (KBA) found that a substantial percentage of bank customers prefer mobile banking channels over other channels, having recorded a 49 percent share of all the customers who took part in the survey.
Out of the sample, 16 percent of respondents prefer Internet banking, with 5 percent being inclined to ATM transactions. This indicates the attitude towards disruptive financial technology on the expectations of customers, who now prefer an enhanced digital experience for convenience, relative to the conventional brick and mortar model.
The continuous shift to digital platforms is being adopted especially by the younger generation, particularly those between 26-35 years.
In line with the shift in preference, the banking industry has aligned itself to technology across banking channels.
Any discussion on banking in Kenya would be incomplete without a mention of the country’s affinity for mobile banking. It is often mentioned that smartphone payments are gaining ground in the US, but mobile money is old news in Kenya. Kenyans have gained a lot of admiration across the globe for their ability to use their phones to pay for goods and bills, make deposits and withdraw cash from agents, buy insurance, for public transport and to transfer to relatives.
Mobile banking has greatly revolutionized banking. Its services have gained a lot of popularity among Kenyans because of its accessibility and affordability. It has also increased efficiency by providing nationwide access to banks’ products instead of regional services and has improved access too. It is, therefore, no surprise that most Kenyans prefer mobile banking over other channels.
With almost 74% of the Kenyan population having mobile phones, mobile banking is penetrating fast in Kenya and is expected to grow rapidly over the next couple of years.