Absa Bank Kenya is set to enhance its mobile loan service by offering long-term, high-value loans, a move aimed at bolstering the capabilities of its existing service that was introduced over six years ago. In pursuit of expanding and diversifying its retail business, the bank plans to transform the Timiza App into a dedicated mobile-only financial services entity. Timiza was initially launched in March 2018 as part of the bank’s digital innovation initiatives. Currently, the platform facilitates mobile loans of up to Kshs 150,000.0 with a 30-day repayment period.
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The Chief Strategist at Absa Bank Kenya, highlighted that the bank intends to go beyond its current usage of Timiza as a short-term borrowing avenue. While not specifying a timeline, he explained that the bank will modify the product to offer loans exceeding Kshs 150,000.0 with extended repayment durations. The strategy aims to capitalize on the evolving trend towards micro and mobile-only financial services. Around 30.0 per cent of the bank’s retail loans by total value are originated through Timiza.
He also revealed plans to transform Timiza into a stand-alone business entity. This shift is expected to accelerate its growth trajectory, facilitating the introduction of new features such as unit trust options. Presently, Absa’s Timiza app offers mobile insurance, enabling users to access personal accident and funeral expense coverage at an affordable rate. Users can also engage in fund transfers, bill payments, airtime purchases, savings, and returns through a Timiza savings account.
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Notably, other lending app products supported by banks include M-Shwari and KCB-MPESA by NCBA and KCB, Equitel by Equity Bank, and M-Co-op Cash by Cooperative Bank.
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