This archive report was first published on 7 December 2021.
On December 7, 2021, Prime Bank became the latest commercial bank to enter Kenya's competitive mobile loans space, offering short-term mobile loans to tap into the mass market.
The product, dubbed PrimeKopa, will be available on the PrimeMobi mobile app, offering loans from Ksh5,000 to Ksh150,000 with repayment periods between 30 days to three months.
Managing Director Bharat Jani stated, "PrimeKopa seeks to provide customers access to mobile loans with flexibility in terms of repayment in a seamless, paperless, and digital manner. We believe PrimeKopa will offer customers a differentiated digital banking experience."
Prime Bank aims to grow its market share, which stood at 2.44 percent as of December 31, according to Central Bank of Kenya (CBK) data. The bank's customer deposits stood at Ksh88.59 billion and the loan book at Ksh44.53 billion.
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While several major financial institutions have been involved in mobile lending, banks have accelerated development of digital financial services during the Covid-19 pandemic.
Standard Chartered unveiled its mobile lending service in July 2021 after receiving the Central Bank of Kenya (CBK) greenlight to operate as a digital micro-lender. Unlike other banks, however, StanChart expressed that its mobile loans strategy wasn't centred on the mass market.
Other banks offering mobile loans include Tier-1 institutions Equity, KCB, NCBA, and Co-op Bank.
