KCB Bank Rolls out Initiative to Drive Savings

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KCB Bank Kenya has kicked off a financial literacy initiative to
drive up savings in the country.
Dubbed Weka Weka, the KCB M-PESA campaign will also enable
customers grow their mobile banking borrowing limits, giving them
access to more money to enhance their livelihoods.
KCB M-PESA has a Target Savings Account that allows customer
to target save for an upcoming project. Interest earned on Savings
is 6.3% p.a. The interest earned on KCB M-PESA accrues on a
daily basis and is loaded to the principal. KCB M-PESA is
accessible on the Safaricom M-PESA menu. Transfer of funds
from M-PESA to KCB M-PESA to Target Savings account and vice
versa is free.
To participate, customers will need to set targets on KCB M-PESA
Target savings account and start saving towards the target. The
saved amount will accrue an interest as well as increase the loan
limit.
“We want our customers to save more. A better savings culture
increases customer financial health and ultimately, a higher
capacity for borrowing when they get ready for a loan. It’s a win-
win,” said KCB Bank Director, Marketing and Communications
Angela Mwirigi.
“We have a role to play to raise the savings culture because of the
potential economic benefits it ultimately holds for our customers.
This is perfectly in line with our sustainability agenda of driving
social performance in addition to financial performance,” said Mrs.
Mwirigi.
The initiative is expected to help boost the national domestic
savings which currently stands at 6.1% since December 2018,
compared with 6.5% in the previous year, according to the latest
data by CEIC, a global data firm in UK. By contrast, neighboring
Uganda and Tanzania have already crossed the 20% mark, even
though their per capita income is significantly lower.
According to the World Bank, the culture of savings can only be
stimulated by the government, households and companies.
KCB Bank has been at the forefront of innovation. Around 65% of
KCB customers are on KCB digital banking which allows them to
borrow, pay and save through mobile banking platforms.
Findings of a research by FSD Kenya in 2017 among adult mobile
phone owners who had used mobile credit shows that 46% of
digital borrowers in Kenya markets currently save digitally. Nearly
all digital borrowers in both markets have tried saving digitally at
some point, with less than a fifth in each country having never tried
it. The research also showed that the main reasons for saving on
digital platforms among digital borrowers include Fees, Business
purposes and food & household needs taking the biggest
percentage of demand for digital savings (at 53%).
Financial inclusion in Kenya has continued to rise, with the
percentage of the population living within 3 kilometers of a financial
services access point rising to 77.0% in 2018 from 59.0% in 2013.
This has been driven by digitization, with Mobile Financial Services
(MFS) rising to be the preferred method to access financial
services.

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Chris is a digital nomad and travel the country while freelancing and blogging. Rest assured, his job is always his first priority.