Standard Chartered Bank has joined the list of Kenyan Banks looking to reap from the thriving Kenya digital lending market.
The lender has unveiled SC Juza, its short-term lending mobile app, to meet the growing demand for short-term unsecured loans easily disbursed through mobile wallets.
The lender now joins KCB, ABSA, Equity Bank, and NCBA among other the top banks tapping into Kenyan's appetite for quick loans.
Latest Competition Authority of Kenya data shows that, Fuliza and M-Shwari, comman 59 per cent of the digital credit market market share in this segment, KCB's Mpesa is third with 15 percent, Tala 13 percent and Branch 9 per cent.
Standard Chartered says its product allows clients to borrow between Sh1,000 and Sh 100,000, with a two-month repayment period, with interest charged only for the days the loan is held, benefiting those who repay early.
The bank's Chief Executive Officer for Kenya and Africa Kariuki Ngari, said that they are out to expand on the gains in the market with mobile lending products by offering a comprehensive solution that is highly inclusive.
"SC Juza is part of our ongoing digital strategy, aimed at providing inclusive financial solutions," said Ngari.
The launch of the platform comes at a time that there has been an increase in defaults across the financial sector in the first quarter of the year.
Over the last month, SC Juza has been offered to a small segment of customers to enable testing and feedback.
StanChart says initial use indicates that over 13,346 clients have attempted to register on the App, with 88 per cent being able to secure loans and the average loan ticket size being secured is Sh10,000.
Ngari, adds that the bank has implemented several measures within its app to safeguard consumers from fraud, leveraging built-in technology.
“Standard Chartered Kenya has invested heavily in digital and innovation to support its clients’ emerging needs. Last year, the bank launched SC Shilingi, the first 100% digital only platform offering money market funds in Kenya,” added Ngari
Currently, 74 per cent of the bank’s client base is digitally active with 87 per cent of its sales and 85 per cent of client servicing done through its digital platforms.
