Big Future for Fintech and Micro lenders
Mostly serve low income earners and people underserved by formal financial sector.
Offer flexible products designed for maximum inclusivity – attractive products that can pool low income earners and thereby effectively reduce cost of serving them.
Micro lenders are growing in Kenya both in number and size of portfolio.
- Mshwari – Partnership between Safaricom and CBA Bank
- among others
Micro lenders are mostly serving a segment that is high underserved – low income earners and a few middle income earners – banks have never been interested in this group.
With success of micro lender platform, banks have changed their tone with many of them scrambling to launch micro lending service – including the mighty Barclays Bank.
Micro lenders and Fintech are now challenging banks who are the least innovative businesses.
The future of innovative fintechs is BIG – those without banks accounts bank with fintechs, those with bank accounts want to be unbanked.