Money: More Kenyans shift to mobile savings accounts
By Zachary Ochuodho, August 19, 2019
More Kenyans are saving cash in mobile money accounts compared to traditional bank accounts, a FinAcess study released recently shows.
FinAcess 2019 report reveals that 79 per cent of adults save money using mobile money accounts, 25 per cent prefer to use mobile banks, 30 per cent use the traditional bank accounts, 26 per cent national hospital insurance account, while eight per cent use digital money.
Interestingly, while the number of adults, who save in mobile money accounts is rising, that of those who save in the traditional bank accounts, Saccos and Microfinance Intermediaries (MFIs) accounts is decreasing.
“There has been an eight per cent increase in the share of adults saving through mobile money and digital apps since 2016 in contrast to a two per cent decline in users of traditional services,” the report says.
Kestrel Capital researcher Eugene Gikonyo says the loan component has greatly contributed to the high number of adults saving in mobile money.
“Mobile device are easily accessible, convenient, timely and cost saving,” says Gikonyo.
He said although products introduced through mobile money have not replaced traditional banking, the number of transactions a day has increased.