According to a report released by business advisory services firm Ernst & Young (EY), young Kenyans are moving away from traditional banking platforms in favour of alternative channels that make use of technology.
“Banks in Kenya are facing increased competition from mobile phone providers who are providing customers with more options in banking and cash transfer than ever,” the EY global consumer banking survey 2014 states.
The report states that the shift is occurring because technology provides a competitive advantage. “Today’s customers have more options than ever and do not view banks as having significant competitive advantage over newer types of banks and technology companies.”
According to the report, 502 bank customers in Kenya were interviewed that focused on 32,642 customers in 43 countries between July 25 and October 7, 2013. “Eighty-one per cent said banks should enhance personalised financial advice, compared to Nigeria’s 75% and South Africa’s 65% and the global average which stands at 74% and 61%, respectively,” it stated.
“A high percentage of Kenyan customers want banks to provide them with plans that will help them reach their financial goals and invest in their financial well-being,” said EY’s Regional Advisory Leader for East and Central Africa, Celestine Munda.
Charlie Fripp – Consumer Tech editor