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.
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.