I&M Bank Ltd and MobiKash have partnered to launch I&M karibu brand, a deal that will see the bank offer agency banking services through MobiKash agent outlets. Through the partnership I&M will tap into MobiKash’s network with the objective of increasing customer access to its banking services in both rural and urban areas without incurring costs of setting up brick and mortar branches. I&M plans to expand the I&M Karibu services countrywide and the region from 2016. The service will initially roll out in 500 MobiKash outlets across 47 counties.
I&M Bank clients can now withdraw and deposit cash at MobiKash Agent outlets, send money from a MobiKash account to an I&M Bank account, as well as send money from an I&M Bank account to a MobiKash account. Speaking during the launch, I&M Bank Group CEO Mr. Arun Mathur noted that the bank has invested in the integration of its various card and mibile platforms with the core banking system allowing MobiKash agents to conduct the transactions in real-time.
According to the 2013 Finaccess survey, Agency Banking has continued to contribute to financial inclusion in the country. The study revealed the proportion of the adult population using formal financial services rose to 66.7% in 2013 from 27.4% in 2006. The proportion of the financially excluded on the other hand has steadily declined from 39.3% in 2006 to 25.4% in 2013. The CEO noted that the Bank’s continued investment in alternate channels such as the I&M karibu partnership continually provide growth trajectory to the Bank and deepen financial inclusion.
MobiKash will manage all its agents while I&M Bank will play an oversight role in this partnership. The Bank will support the agents in all the regions through its branch network where agents will maintain their floats in the Bank’s MobiKash trust account.
