M-PESA meets microsavings with Equity Bank deal in Kenya
by Jim Rosenberg : Tuesday, May 18, 2010
This morning in Nairobi, Safaricom and Equity Bank were joined by Kenyan President Mwai Kibaki as they announced a new product called M-Kesho, an interest-bearing savings account. Kenya’s 9.4 million M-PESA users will have access to mobile microsavings, microinsurance, and other banking services with Equity Bank, a CGAP project partner.
If M-PESA has given millions of Kenyans a safe, cheap alternative to carrying cash, then today’s new service, M-Kesho, will give millions of Kenyans a safe, cheap alternative to keeping cash under the mattress. CGAP is supporting Equity Bank to learn more about how to deliver savings accounts to poor, unbanked people. The Technology Program at CGAP is co-funded by the Bill & Melinda Gates Foundation, CGAP, and the UK Department for International Development.
“This product will promote a savings culture in Kenya,” said Safaricom CEO Michael Joseph. Savings matter at the macro level because domestic sources of bank deposits help mobilize money for investing and economic development (and foster less dependence on foreign funding flows).
“Now, Kenyans will have self-service savings accounts on cell phones. When these accounts are linked though M-PESA, we will be the most-banked country in Africa and the developing world,” said James Mwangi, CEO of Equity Bank.
At the client level, savings can empower poor people to have better lives. That’s because when you’re poor, you probably have unexpected expenses and earn money in a lumpy, unpredictable way. Savings can smooth out the lumpiness. This is why today’s announcement is exciting not just in Kenya, but across the globe.
Speaking in Nairobi, CGAP acting CEO Alexia Latortue said, “Today, Kenya is sending a message to the world: poor people want savings accounts. Mobile banking is a powerful way to deliver savings services to the billion people worldwide who have a cell phone but not a bank account.”
May 18th, 2010 at 10:27 am, Neeraj Sharma ()
congrats for the initiatives.
I at KEBT would like to be part of the solution,& sugggest the use of smart cards for the safer & authenticated transactions.
Best wishes
Neeraj sharma
India.
19 Comments
May 18th, 2010 at 9:39 am, katch up ()
Innovation becomes invaluable when it starts meeting people’s needs. Mobile technology will keep giving leaps into advancement for Africa’s rich and poor, as services respond more and more to people’s basic needs and not just to entertainment.
Well done and I hope you spread this to other developing countries.