Kenya: Equity launches digital banking strategy to reach SMEs
Small businesses can apply for loans on a new mobile banking platform.Equity Bank is launching a digital banking platform through which small and medium-sized enterprises (SMEs) can apply for loans.
The bank said that its Equitel mobile platform has the cognitive analytics to assess risk and make credit decisions for this class of customers.
"By December we will have digitized SMEs, asset finance, mortgage and other loans," Chief Executive, James Mwangi told CIO East Africa.
Through this strategy, Equity is looking to increase lending to SMEs. According to figures from the Kenya Financial Sector Deepening programme, the micro, small and medium-sized enterprise market has approximately 7.5 million enterprises contributing around 44 per cent to the Kenyan GDP.
In December 2013, the banks’ total SME lending portfolio represented 23.4 per cent of their total loan portfolio.