KCB-MPESA 2.0 pushes digital loans from Sh23b to Sh98b in Q3

KCB Group Plc has posted a profit after tax of Sh19.2 billion for the nine months ending September 2019, 6 percent higher compared to the same period last year.

The growth came on the back of significant growth in the loan book and non-funded income which increased by 16.9 percent attributable largely to a revamped KCBMpesa.

Loans disbursed under this platform improved from Sh23 billion last year to Sh98 billion.

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“The international businesses have continued to improve while our digital offerings are witnessing increased activity, giving the business impetus to continue growing,” said KCB Group CEO, Joshua Oigara.

“Going forward, we are emphasizing on driving a more sustainable growth, excellent customer experience and diversification.”

Non-branch revenue grew by 141 percent to reach Sh8.6b while 95 percent of transactions were performed outside the bank.

Mobile transactions expanded to 75 percent of all transactions at the expense of agency/internet, branch and ATMs which dropped to 15 percent, 5 percent and 5 percent respectively.

The revamped KCB-MPESA digital platform was activated in December 2018 with additional and enhanced capabilities.

Customers could now borrow, repay and borrow again from KCB-MPESA the same day, open a target savings account and top up the same day.

KCB M-PESA 2.0 also allows users to borrow a loan, pay it back the same day and borrow again while also allowing top-up loans, a capability that will allow customers to borrow multiple times in the same month without being required to clear their outstanding balance up to their assigned limit.

The revamped product is part of KCB Bank digital banking proposition meant to deliver sustainable growth for the business into the future.

“We are continually reimagining digital finance. There is a need for us to embrace innovation and digitization beyond our current realm of operations” said KCB Group CEO and MD Mr. Joshua Oigara during the relaunch of KCB M-PESA on Tuesday. The Bank migrated to the new system last month and is onboarding over 1 million customers monthly and disbursing at least Kshs 7 billion every month,” said Oigara during the relaunch.

Since KCB Bank partnered with Safaricom in March 2015, the customer base has grown from 4 million to 14 million.