@ Indeje, I wonder whether we are being driven to a “you must have a credit
score” world and thereby a situation where one might have to take a loan
just to get a credit score.
2018-07-12 10:12 GMT+03:00 David Indeje via kictanet <
> As regards 3. How about the Credit Reference Bureaus? Are they stuck in a
> time warp or is the legislation in place encumbering them from innovation?
> I once spoke to KBA’s Dr. Habil Olaka and he noted that the CRB’s role in
> the market has not been achieved as it is currently constituted.
> According to him, CRB was not to play the role of blacklisting persons who
> have defaulted but rather to inculcate an environment where people become
> responsible and
> help financial institutions to better price a person who is seeking
> financial help.
> This is a reason that led to the launch of the Loan Calculator by the KBA.
> There reasoning was it is better to get a loan from a bank rather than the
> mobile lending platforms.
> However, in line with what @GraceBomu notes on mobile lending, FSD in
> their 2017 report <fsdkenya.org/annual-report/2017-annual-report/>
> recommended that “As the market for digital loans grows and diversifies,
> further research is needed to help build a more complete and timely picture
> of how and whether these products can improve Kenyans’ lives.”
> On Regulation: CBK has the best answer on how it regulates mobile lending
> institutions so that they are differentiated from the banks. However, I
> agree with BBK MD Jeremy Awori who says “Excessive control and regulation
> does not help the market. This is adding a lot of bureaucracy and cost,
> which will find its way to the charges of products” he spoke this
> Same sentiments have been raised by Safaricom and also the CBK
> as regards to the new Financial bill
> *Kind Regards,*
> *David Indeje *
> +254 (0) 711 385 945| +254 (0) 734 024 856 Khusoko
> <ke.linkedin.com/pub/david-indeje/17/7b9/647> Skype: david.indeje
> On Thu, 12 Jul 2018 at 09:47, Grace Bomu via kictanet <
> firstname.lastname@example.org> wrote:
>> Hi Ali,
>> With regard to the question of mobile money lending, it is a subset of
>> micro finance in many ways. It definitely leads to more financial
>> inclusion for the unbanked and provides credit to those who would normally
>> not be targeted by banks. However, the interest rates are sometimes so high
>> that one wonders if the goal is financial inclusion or bondage through
>> credit. There needs to be more transparency by the lending apps not only
>> about their rates but how these are derived, what data they hold and for
>> how long. The money lending apps are also marketed in isolation from other
>> important information that one needs in order to make the most out of
>> credit. In comparison to microfinance for example, the institutions take
>> time to educate borrowers about finance, business plans, loan repayment
>> plans etc. There are also social structures like women groups or SACCO
>> groups that assist borrowers to reach their goals with the money they
>> borrowed. This is a gap with mobile money lending apps which are more
>> impersonal and agnostic about the purposes for borrowing.
>> Il giovedì 12 luglio 2018, Ali Hussein via kictanet <
>> email@example.com> ha scritto:
>>> Dear listers.
>>> Since the advent of Mpesa, Kenya has been recognized as Ground Zero for
>>> Mobile Money/Payments Innovation the world over. According to a World Bank
>>> report one in every ten human beings regularly using mobile money is a a
>>> Over the last few years Fintech (Financial Technology) has become all
>>> the rage. American startups are setting up in Kenya. The more common ones
>>> that we know are Branch and Tala who combined have raised over $150m of
>>> venture funds in the last few years. These two are mainly mobile lending
>>> platforms. Insuretech is taking root. Payment Platforms are proliferating.
>>> Banks are jumping onto the Fintech Bandwagon with mainstream banks like
>>> Barclays and HF Group launching their mobile lending apps. Equity Bank
>>> boldly announced a few weeks ago that they are building an API Bank.
>>> Banking as a Service as it were.
>>> Not to be left out, Blockchain and it’s offspring, Bitcoin is threading
>>> to complete the upheavals in the financial sector. On top of it all the
>>> government is playing catch up on regulation with the announcement of the
>>> Finance Bill 2018. See analysis from KPMG on this.
>>> To ponder:-
>>> 1. Are we moving too fast? Is there a need to take a chill pill and
>>> reflect on the gains and achievements of the sector? Should we regulate
>>> lightly or heavily?
>>> 2. Should we regulate and cap the mobile lending platforms? Are they
>>> playing a crucial role of financial inclusion or are they just loan sharks
>>> on steroids?
>>> 3. How about the Credit Reference Bureaus? Are they stuck in a time warp
>>> or is the legislation in place encumbering them from innovation?
>>> 4. Lastly is the BlockChain conversation being overhyped? And how do
>>> you separate the technology from the cryptocurrencies it spawns?
>>> Over to you Listers.
>>> *Ali Hussein*
>>> *AHK & Associates*
>>> +254 0713 601113
>>> Twitter: @AliHKassim
>>> Skype: abu-jomo
>>> LinkedIn: ke.linkedin.com/in/alihkassim
>>> “We are what we repeatedly do. Excellence, therefore, is not an act but
>>> a habit.” ~ Aristotle
>>> Sent from my iPad
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> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> for people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people’s times and bandwidth,
> share knowledge, don’t flame or abuse or personalize, respect privacy, do
> not spam, do not market your wares or qualifications.