Our last post discussed how the banking industry is at the cusp of an inflection point.  To recap, several US startups are attempting to redefine the customer experience by going branchless and embracing simplicity.  Across the Atlantic, a new era of banking is already in full swing and — as with mobile money in general — Kenya is leading the way. 

Thanks to mobile money systems like M-Pesa, Kenyans can deposit and withdraw cash at over 26,000 agent outlets throughout the country.  For context, that’s like cramming the entire Wells Fargo ATM network in a space slightly twice the size of Nevada.  

Once money is deposited to a mobile money account, users can remotely pay bills, send money, buy airtime, and purchase goods — all within seconds.  Mobile money is so ubiquitous that a number of banks and third parties now offer it as a channel for accessing financial services.  

Take Musoni, the Kenyan subsidary of a Dutch holding company.  According to its website, Musoni is “the first MFI [microfinance institution] in the world to go 100% mobile”.  They leverage mobile money to disburse loans and process deposits and repayments.  As a result, Musoni customers can access a range of financial services from anywhere in the country.

Another example is M-Pepea, a service that enables eligible customers to access emergency micro-credit loans in real-time via M-Pesa.  

Kenyan banks were quick to recognize the importance of offering services that compliment customer behavior.  Equity Bank, the largest bank in East Africa, offers a full suite of financial services via multiple mobile money systems (M-Pesa, Orange Money, yuCash, and Airtel Money).  Their own mobile banking service, Eazzy 24/7, enables customers to both remotely access financial services and transact with a countrywide network of over 3,000 Equity Agents.

Kenya Commercial Bank (KCB) followed Equity Bank with the launch of its Connect and Mtaani services, which it advertised via social networks like Facebook and Twitter.   

As you might guess, the common themes are accessibility and simplicity, which — when taken together — translate to unrivaled convenience.  

It’s really that simple.  As US banks re-calibrate to meet the expectations of a 21st century customer, they would be wise to study Kenya.  What started with the humble ambition to change how Kenyans “Send Money Home” has turned out to be one the most significant innovations in recent memory.  

Ben Lyon, VP of Business Development (@bmlyon)