The explosion of finetch products continues to take an upward trajectory as new services are launched every passing year. This development, which is marked by tens of payments and mobile loan apps has raised a lot of questions in terms of policies from the government and treasury.
The sector has admittedly played a key role in terms of innovations that are replacing traditional systems. The gains of the industry will for the first time see some changes in terms of policy, cost of credit and so forth once the findings of a meet that was held on Wednesday go live.
The forum, which convened banks and policymakers was primarily held to discuss the role of fintech in a period when banks are playing catch-up with modern financial practices that use banking apps and internet services to replace conventional systems.
According to the Business Daily, the fair, which was staged by the Kenya Bankers Association (KBA) aimed to explore the impact of fintech as a key player in the credit market and the services of technology in households and SMEs.
It should be noted that fintech services have been instrumental in shaping service delivery in financial intuitions in the last couple of years. Banks such as Equity have been exploring this journey with products such as Internet banking, Eazzy App and its MVNO, Equitel. Other banks are considering, or have put in place processes to digitize corporate banking as well.
In terms of lending, banks have been urged to take advantage of data gathered by fintech institutions for mobile lending to curate better credit score systems. The activity targets to alleviate cases of bad loans in the industry.