Digital financial services have rapidly increased in Kenya, supported by the high rate of mobile phone ownership and improved internet connectivity. Between September and November 2017, the Master Card foundation in partnership with Caribou Data conducted a survey on the use of digital financial services in Kenya.
The study found that most smartphones in Kenya are “old/outdated, underpowered, or nearly full…” all of which affect the use of digital money services. Users in urban areas enjoy better quality of service due to 3G internet and Wi-Fi connectivity unlike the rural consumers who struggle with slower 2G internet.
The survey revealed that only 13 percent of active users of digital financial services are classified as effective daily users. Consumers of mobile-based financial services mainly used the facilities to top-up, send money, and withdraw funds. Small portion of users used the services to save and borrow money.
It emerged that most digital financial services borrowers are male, live in urban areas, and nearly half of them own smartphones. 47 percent of this segment said they gamble.
Most savers are women in rural places. The study found that most consumers have difficulties using the digital services effectively. The researchers recommend that, “Products need to be designed for simplicity and resource-constraint.” During the study, they learnt that most users prefer short codes to using apps.
From the survey, Master Card foundation and Caribou data concluded that “there is plenty of room (and need) for digital Kenyans to move to more advanced and regular DFS use.”
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