Banque mobile au Kenya

Project Start Date: January 2002

Funding: FDCF £ 277,550 (62%); EBS £ 172,600 (38%)

What is it?

Equity Bank is bringing mobile banks to some of the most isolated parts of rural Kenya that have no access to commercial financial institutions.

• The mobile banks service around 20 small villages
• Four 4-wheel drive mobile banks visit each village once or twice weekly
• GSM and satellite technology are used to overcome the deficiencies of the telecommunications system in rural areas
• Mobile banks are able to fill the gap left by the closure of rural bank branches

Who benefits?

The mobile banks offer banking goods and services to many small businesses and smallholder farming households.

• Banking transactions including saving and essential borrowing encourage new and existing businesses
• Increased economic activity in poor areas improves living standards and opportunities for the poor
• Improved financial services encourages investment in infrastructure
• The Equity Building society has invested in staff and brought in new skills providing employment and improved opportunities for employees
• EBS expects to expand to take advantage of the increased demand for banking services in rural areas of Kenya

Implementation
The mobile units work from an existing bricks and mortar bank. Account information is continually transferred from mobile to bank using GSM technology and satellite dishes located in each village. Each mobile carries money, trained staff and security guards and allows customers from up to five satellite villages to deposit, withdraw and borrow funds.
Innovation
The mobile bank scheme is a first for Kenya and reverses the trend for commercial sector banks to withdraw from rural areas. The development of the project has included creating a sustainable and transferable business model.

(Source: Financial Deepening Challenge Fund)