M-Shwari which is a product operated by the mobile phone service firm in partnership with Commercial Bank of
Speaking during an update of the M-shwari service at
Out of this, total bad loans account for Sh120 million affecting only 1.7 per cent of the entire M-Shwari customer base.
"One wonders where these amounts would have been had it not been for M-Shwari," said
"M-Shwari is evidently still in a Parabolic Growth curve and I reckon has further to go," analyst
Unlike M-Pesa which offers money transfer between persons, bank accounts and payment of utility service bills via the mobile phones, M-Shwari allows not only deposits but savings since the money can be kept for more than three months unlike Mpesa and also loan access.
The M-Shwari deposits are 0.39 per cent of the total banking industry deposits for 2013 which grew by Sh220 billion to stand at Sh1.98 trillion.
Bad loans by the 43 banks licenced by the Central Bank of
"We no longer see the mobile technology as mere communication tools but as enablers to economic and social development. With M-Shwari we are proud to be contributing towards the financial inclusion agenda," said Collymore yesterday.
Ngunze said the two companies aim to aggressively increase the number of M-Shwari users over the next few months as they aim to expand the country's financial inclusion number.
As at end September, the number of people in the formal financial banking services stood at 21.12 according to CBK.
The two CEOs were speaking as they launched a three month consumer promotion aimed at increasing the customer base and usage for M-Shwari.
At the end of the promotion, one M-Shwari customer will win a grand prize of Sh5 million while each week there will be Sh1 million winner and another 15 winners of Sh100,000.
Also, 100 lucky customers have a chance to have their M-Shwari deposits doubled in the duration of the promotion.
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