Well written piece👏. I'm keen on seeing startups launching API's in this space (only a matter of time) as well as action from the relevant regulator/s in developing the framework for a conducive ecosystem
I'm curious Samora, do we need the implementation of open banking protocols to enable the development of a robust credit scoring framework akin to what the US have? Wouldn't this be critical for some of the use cases you discuss in the post e.g., Pam Golding acting as mortgage brokers?
By bank agnostic agency banking service. This essentially means that you have agency banking but open to work with any bank. Just like Visa is bank agnostic.
Pesalink is a sleeping Giant. I love using the platform more so especially my bank has made it the only mode of transfer on the app. Uptime is superb at very low cost but public awareness is terrible. I hope its something the New MD of Pesalink is looking to address
Yes hopefully. It also needs to be upgraded particularly for direct debits plus identification e.g. biometrics so that it can have more functionality. Thanks for the comment and I hope you've subscribed.
I would assume that identification has already been covered by virtue of it being embedded on the Bank's platform (Mobile App/ussd) This however makes me wonder if that is the reason uptake has been dismal. do you think it would have been different if it was a separate platform?
yes. subscribed and just catching up on my reading.
In my view it should ideally be open up to having central identification e.g. $ivy123 and this identification is agnostic of banks. You then attach this identification to whichever account you want payments to settle into including virtual wallets. This can then be useful for things like disbursements, p2p, c2b and enable fintechs to build. From a product perspective, it's not an improvement to Mpesa. UPI of India to me is where we should be looking at. I understand though that CBK is working on this.
I am drawn to the topic of digital transformation and the opportunities this will present to all stakeholders: consumers, regulators, integrators and banks. Everyone wins. The question your thesis raises is what’s the trigger to change ? What cues, rituals or actions and feedback is required by us consumers to instigate change?, Innovators to connect early adopters to enabling technologies? Regulators to identify value that shall uplift the youth?
I think first thing first would be clear and concise regulation around open banking and the secured exchange of customer data to third parties by the Central Bank. Once this is in place then a number of moving parts will fall into place.
Agreed, there's so much room for banks in the fintech space to improve and make our lives easier. Especially with the apps. I would love to see an app that gives me a monthly summary of my spending compared to my budget
Thanks Mukami... you have the great honour of being the first to comment on the substack. I think Open banking will enable people to actually create customer centric products rather than having generic bank products.
Well written piece👏. I'm keen on seeing startups launching API's in this space (only a matter of time) as well as action from the relevant regulator/s in developing the framework for a conducive ecosystem
Yes, I'm also looking forward to the initial steps from the regulator to see what direction they take. Thanks Mark and I hope you have subscribed.
I'm curious Samora, do we need the implementation of open banking protocols to enable the development of a robust credit scoring framework akin to what the US have? Wouldn't this be critical for some of the use cases you discuss in the post e.g., Pam Golding acting as mortgage brokers?
Very good article. However, i do not seem to understand what you meant fully by "A bank agnostic agency banking service"
By bank agnostic agency banking service. This essentially means that you have agency banking but open to work with any bank. Just like Visa is bank agnostic.
Pesalink is a sleeping Giant. I love using the platform more so especially my bank has made it the only mode of transfer on the app. Uptime is superb at very low cost but public awareness is terrible. I hope its something the New MD of Pesalink is looking to address
Yes hopefully. It also needs to be upgraded particularly for direct debits plus identification e.g. biometrics so that it can have more functionality. Thanks for the comment and I hope you've subscribed.
I would assume that identification has already been covered by virtue of it being embedded on the Bank's platform (Mobile App/ussd) This however makes me wonder if that is the reason uptake has been dismal. do you think it would have been different if it was a separate platform?
yes. subscribed and just catching up on my reading.
In my view it should ideally be open up to having central identification e.g. $ivy123 and this identification is agnostic of banks. You then attach this identification to whichever account you want payments to settle into including virtual wallets. This can then be useful for things like disbursements, p2p, c2b and enable fintechs to build. From a product perspective, it's not an improvement to Mpesa. UPI of India to me is where we should be looking at. I understand though that CBK is working on this.
Kariuki, Sorry, meant "a Very well written article!
Thank you very much Isaac.
Kariuki, This is a very written article.
I am drawn to the topic of digital transformation and the opportunities this will present to all stakeholders: consumers, regulators, integrators and banks. Everyone wins. The question your thesis raises is what’s the trigger to change ? What cues, rituals or actions and feedback is required by us consumers to instigate change?, Innovators to connect early adopters to enabling technologies? Regulators to identify value that shall uplift the youth?
I think first thing first would be clear and concise regulation around open banking and the secured exchange of customer data to third parties by the Central Bank. Once this is in place then a number of moving parts will fall into place.
Agreed, there's so much room for banks in the fintech space to improve and make our lives easier. Especially with the apps. I would love to see an app that gives me a monthly summary of my spending compared to my budget
Thanks Mukami... you have the great honour of being the first to comment on the substack. I think Open banking will enable people to actually create customer centric products rather than having generic bank products.