16 June 2010 News

 

Vodafone adds savings and insurance to mobile banking package

M-PESA, Vodafone's money transfer technology, now provides customers with the ability to link to an interest bearing savings account and buy insurance via their mobile. The service, which is operated by Safaricom in Kenya, offers customers the chance to save money using a direct link to Equity Bank. It will provide a safe and secure service for many millions of Kenyans who currently do not have access to a bank account and so are unable to save money in a secure environment.

Launched in 2007, M-PESA has been taken up 9.5 million Kenyans as an alternative to carrying cash, and the new service, christened M-KESHO, will build on this.  Not only will customers be able to transfer cash but they will be able to save it as well, earning interest on any deposit above 1 Kenyan shilling.

"Basic banking and money transfer services play a key role in building a secure economy" said Cenk Serdar, Vodafone's director of Mobile Payment Solutions. "We are delighted that M-KESHO will enable more people to save and as a result we hope this will have a positive influence on the whole economy."

Safaricom chief executive, Michael Joseph said "This is a great idea that will drive customers to save into their bank accounts and enjoy the benefits of having the value added services of both MPESA and an Equity bank account."

M-KESHO is currently available through a limited number of agents in Kenya.  There are plans to roll it out nationally over the next few months.