Author: Winnie Banice

A major concern for the banks aside from advancing loans and making a profit include dealing in ‘clean’ money. ‘Dirty’ money involves money from illegal activities, financial crime, money laundering, and terrorism funding. Kenya is a signatory to the United Nations International Convention for the Suppression of the Financing Terrorism (1999). This convention is the most comprehensive instrument for combating terrorism financing. Kenya is also a member of Eastern and Southern Africa Anti-Money Laundering Group, which is an Associate member of the Financial Action Task Force (FATF). When it is easy to tell where the money is going to once…

Debit cards are also known as bank cards, check cards or plastic cards. A debit card can be used while making purchases and withdrawing cash at Automated Teller Machines (ATMs) or at an agent merchant point of sale (POS). Having a debit card is an alternative to using cash when making purchases. When using a debit card, money is immediately transferred directly from the card holder’s bank account. The main difference between a debit card and a credit card is that for a credit card, the cardholder pays a month after the transaction. A credit card is a short term…

Social finance is an approach to managing money that gives both a social dividend and economic returns. It is defined as investing in socially responsible and sustainable businesses. Co-operatives, charities, social enterprises, and other impact-focused organizations often encompass the social finance space. Social finance dispels the idea that social progress and capitalism are incompatible. Governments have historically held the role of solving social problems, however, the amount of capital needed exceeds the government spending abilities, which has been compounded by the huge growth rate in the world and a global recession. The gap to solve social problems can no longer…

The Consultative Group to Assist the Poor (CGAP) defines digital credit as loans that are delivered and repaid digitally – over the phone. Being instant, remote and automated are the three characteristics that differentiate digital credit from conventional loans. Instant: Digital credit uses a customer’s digital data history in airtime top-ups, the number of calls made, and data used on smartphones to make lending decisions. Since the loans are delivered via phone, disbursement is instant. Automated: Registration for digital credit mostly referred to as e-credit, application, disbursement, and repayment are automated. The lender designs a program with preset parameters that…

With the rising cases of terrorism and terrorism funding, banks have a role to play in the grand scheme of financing. This is why there are rules in place on the basic items a bank must check against when opening an account. This is known as the KYC – Know Your Customer process. Investigations into terrorist activities most often than not reveal funding of such activities from laundered money usually obtained from illegal activities, for instance, the sale of arms, human trafficking or drugs. It, therefore, requires a different and more proactive approach to enhance compliance in account opening procedures.…

Kenyan Banks have recognized the need for integrating digital into their operations and are making much-needed strides in embracing the changes in the environment.