In a move to strengthen its digital banking offerings, Standard Chartered Kenya has launched SC Juza, a new mobile loan app allowing Kenyans to access short-term loans.
The CEO, Kariuki Ngari, described it as “the final piece” in the lender’s digital evolution strategy.
SC Juza Mobile Loan Features and Charges
The SC Juza app enables borrowers to access loans ranging from Kshs 1,000 to Kshs 100,000 at an interest rate of 1.60% per month. The interest charged is determined by the number of days the loan is held.
Additionally, there is a 5.50% processing fee and a 5.5% service fee for loans not repaid within the first month.
“SC Juza represents the final piece in our digital evolution. It symbolises creating a holistic digital ecosystem, enabling our clients to do everything from open an account to invest in sophisticated money market products,” said Ngari.
Kenya’s Competitive Mobile Lending Landscape
The rise of mobile money in Kenya has opened doors for short-term lending solutions targeting individuals and small businesses. Major banks like KCB, ABSA, and Equity have already established their presence in this space.
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SC Juza will compete with 51 licensed Digital Credit Providers by the Central Bank of Kenya (CBK), with more likely to join as the regulator has received over 480 license applications since March 2022.
According to a recent Competition Authority of Kenya study, Safaricom’s Fuliza and M-Shwari dominate the mobile loan market with over 50% share. KCB M-Pesa ranks third with 15%, followed by Tala (13%) and Branch (9%).
However, a May report by TransUnion indicates that mobile loans declined by 25% by December 2023 as defaults became common due to economic challenges faced by many Kenyans.
Digital Banking Driving Financial Inclusion in Africa
“2024 will be a pivotal year for the banking sector. For the first time in human history, it will capture the moment when over 50 per cent of Africans will have access to a bank account.
Our continent is also home to more digital financial services deployments than any other region in the world, with almost half of the nearly 700 million individual users worldwide,” Ngari stated.
In February 2022, Standard Chartered launched the SC Shilingi app, enabling customers to invest in money market funds from their mobile devices, further expanding its digital offerings.
The launch of SC Juza marks Standard Chartered’s entry into Kenya’s rapidly growing mobile lending market, driven by increasing digital and financial inclusion across Africa.
[appbox microsoftstore ]As more Kenyans embrace mobile banking solutions, the competition in this space is expected to intensify.
