92% of financial institutions in Kenya have adopted or developed an online banking solution (mobile application or USSD) to assist them in their administration of banking services and customer relations.
This is according to a regular survey by the Central Bank of Kenya painting a picture of the state of innovation in Kenya’s banking sector. Only 4 institutions (two banks and two microfinance banks) have not adopted or developed a mobile banking solution (app or USSD).
According to the survey, banks in Kenya prioritized the following innovations:
- Application Programming Interfaces (APIs)
- Big Data and Data Analytics
- Biometric technology
- cloud computing
According to the report, 79% of banks and 50% of MFBs have introduced a fintech product in the past year. Additionally, while banks were more interested in credit products in 2020, payments were the main product for banks in 2021.
The investigation also revealed that cyberattacks are the biggest threat banks fear as they continue to move towards digitization.
The survey noted that:
- 92% of banks and
- 86% of micro-finance banks (MFB)
has identified cyber risks as one of the top 3 innovation risks.
Cyber risks in banks target data privacy and threaten data security for bank customers and safety of their funds.
The survey collected data on the state of innovation as of December 31, 2021 from 38 commercial banks, 1 mortgage finance institution and 14 microfinance banks (MFBs).
Read/Download the full report below:
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