Equity Group’s mobile money platform Equitel has recorded a 6,470 per cent growth in loan disbursements since its launch in July 2016.
Speaking during the release of the 2016 half year financial results, Equity Group Holdings CEO Dr. James Mwangi said Equitel had processed loans worth Ksh.20.8 billion as at the end of June 30 3016, a 6,470 per cent increase from Ksh.0.3 billion recorded when the platform was launched in July 2015.
In addition, Equitel now processes 82 per cent of the banks loans and the platform is expected to continue reducing the bank’s costs.
“We will not be surprised if in the next three years the bank’s cost-to-income ratio goes below 40 per cent,” said Dr. Mwangi.
The bank’s cost-to-income ratio reduced to 43.6 per cent in the first half of the year down from 47.4 per cent aided by the increased use of the Equitel platform.
Equitel is now poised to capture the market for social collections such as funeral, wedding contributions through the “multiple approval” feature.
Equitel has introduced the innovative “multiple approval” feature that eliminates the need for account signatories to physically meet to withdraw cash or co-signing of cheques by signatories.
Through the “multiple approval” feature users first originate a request to withdraw cash on their Equitel menu. The request is then sent to other account signatories who in turn enter their PIN to approve the withdrawal request.
The “multiple approval” feature allows account holders to use their PINs as their account signatures.
Equitel users will have to link their lines to the joint account to be able to use the “multiple approval” feature.
The new innovative feature has made it easier for chamas, joint accountholders and similar users to transact by replacing signatures with individual Equitel PINs, thus eliminating the need for signatories to physically meet or sending cheques for co-signing by respective signatories.