<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"><head><meta http-equiv=Content-Type content="text/html; charset=utf-8"><meta name=Generator content="Microsoft Word 15 (filtered medium)"><!--[if !mso]><style>v\:* {behavior:url(#default#VML);}
o\:* {behavior:url(#default#VML);}
w\:* {behavior:url(#default#VML);}
.shape {behavior:url(#default#VML);}
</style><![endif]--><style><!--
/* Font Definitions */
@font-face
{font-family:Helvetica;
panose-1:2 11 6 4 2 2 2 2 2 4;}
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Verdana;
panose-1:2 11 6 4 3 5 4 4 2 4;}
@font-face
{font-family:"Trebuchet MS";
panose-1:2 11 6 3 2 2 2 2 2 4;}
@font-face
{font-family:"Comic Sans MS";
panose-1:3 15 7 2 3 3 2 2 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:12.0pt;
font-family:"Times New Roman",serif;}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
p
{mso-style-priority:99;
mso-margin-top-alt:auto;
margin-right:0in;
mso-margin-bottom-alt:auto;
margin-left:0in;
font-size:12.0pt;
font-family:"Times New Roman",serif;}
p.msonormal0, li.msonormal0, div.msonormal0
{mso-style-name:msonormal;
mso-margin-top-alt:auto;
margin-right:0in;
mso-margin-bottom-alt:auto;
margin-left:0in;
font-size:12.0pt;
font-family:"Times New Roman",serif;}
span.EmailStyle19
{mso-style-type:personal-reply;
font-family:"Calibri",sans-serif;
color:#1F497D;}
.MsoChpDefault
{mso-style-type:export-only;
font-family:"Calibri",sans-serif;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Good afternoon,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>It actually is happening in Kenya. The longer you stay without a loan the lower your score becomes.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Also in the western world, people that do not need a loan still take them to keep up their credit scores.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Call it the cost of living in a data analytics driven world or is it wrong assumptions built into the algorithms?<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Regards,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Alex Watila<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> kictanet <kictanet-bounces+awatila=yahoo.co.uk@lists.kictanet.or.ke> <b>On Behalf Of </b>Grace Bomu via kictanet<br><b>Sent:</b> Thursday, July 12, 2018 10:19<br><b>To:</b> awatila@yahoo.co.uk<br><b>Cc:</b> Grace Bomu <nmutungu@gmail.com><br><b>Subject:</b> Re: [kictanet] Kenya IGF Online Discussions. Day 3. Developments in Fintech and E-commerce<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><div><div><p class=MsoNormal><span style='font-family:"Verdana",sans-serif'>@ Indeje, I wonder whether we are being driven to a "you must have a credit score" world and thereby a situation where one might have to take a loan just to get a credit score. <o:p></o:p></span></p></div></div><div><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>2018-07-12 10:12 GMT+03:00 David Indeje via kictanet <<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a>>:<o:p></o:p></p><blockquote style='border:none;border-left:solid #CCCCCC 1.0pt;padding:0in 0in 0in 6.0pt;margin-left:4.8pt;margin-right:0in'><div><div><p class=MsoNormal><span style='font-family:"Comic Sans MS"'>As regards </span><span style='font-family:"Arial",sans-serif;background:white'>3. How about the Credit Reference Bureaus? Are they stuck in a time warp or is the legislation in place encumbering them from innovation? </span><span style='font-family:"Comic Sans MS"'> <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Comic Sans MS"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Arial",sans-serif;background:white'>I once spoke to KBA's Dr. Habil Olaka and he noted that the CRB's role in the market has not been achieved as it is currently constituted. </span><span style='font-family:"Comic Sans MS"'><o:p></o:p></span></p></div><p class=MsoNormal>According to him, CRB was not to play the role of blacklisting persons who have defaulted but rather to inculcate an environment where people become responsible and<o:p></o:p></p><div><p class=MsoNormal><span style='font-family:"Comic Sans MS"'>similarly,<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Arial",sans-serif;background:white'>help financial institutions to better price a person who is seeking financial help. </span><span style='font-family:"Comic Sans MS"'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Comic Sans MS"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Arial",sans-serif;background:white'>This is a reason that led to the launch of the Loan Calculator by the KBA. There reasoning was it is better to get a loan from a bank rather than the mobile lending platforms.</span><span style='font-family:"Comic Sans MS"'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Comic Sans MS"'> However, in line with what @GraceBomu notes on mobile lending, FSD in their 2017 <a href="http://fsdkenya.org/annual-report/2017-annual-report/" target="_blank">report</a> recommended that "As the market for digital loans grows and diversifies, further research is needed to help build a more complete and timely picture of how and whether these products can improve Kenyans’ lives." <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Comic Sans MS"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Comic Sans MS";color:red'>On Regulation:</span><span style='font-family:"Comic Sans MS"'> CBK has the best answer on how it regulates mobile lending institutions so that they are differentiated from the banks. However, I agree with BBK MD Jeremy Awori who says "Excessive control and regulation does not help the market. This is adding a lot of bureaucracy and cost, which will find its way to the charges of products" he spoke this yesterday. <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Comic Sans MS"'>Same sentiments have been raised by Safaricom and also the <a href="https://www.businessdailyafrica.com/markets/marketnews/Proposed-finance-law-will-cripple-CBK--says-governor/3815534-4585524-dt5vtiz/index.html" target="_blank">CBK</a> as regards to the new Financial bill <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Comic Sans MS"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Comic Sans MS"'><o:p> </o:p></span></p></div><div><div><div><div><div><div><div><div><div><div><div><div><div><div><div><p class=MsoNormal><b><span style='font-size:9.5pt;font-family:"Trebuchet MS",sans-serif;color:#990000'>Kind Regards,</span></b><o:p></o:p></p><p style='margin-top:6.0pt'><b><span lang=EN-GB style='font-size:10.0pt;font-family:"Trebuchet MS",sans-serif;color:#990000'>David Indeje </span></b><span style='font-size:9.5pt'><o:p></o:p></span></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p style='mso-margin-top-alt:0in;margin-right:0in;margin-bottom:3.75pt;margin-left:0in;line-height:11.25pt'><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#4A4A4A'><img border=0 id="_x0000_i1025" src="https://cytonn.sheerhr.com/signature/icon/ico-phone.png"> +254 (0) 711 385 945| +254 (0) 734 024 856 <img border=0 id="_x0000_i1026" src="https://cytonn.sheerhr.com/signature/icon/ico-web.png"> <a href="http://bit.ly/2eJF9B4" target="_blank">Khusoko</a><o:p></o:p></span></p><p style='mso-margin-top-alt:11.25pt;margin-right:0in;margin-bottom:3.75pt;margin-left:0in;mso-line-height-alt:11.25pt'><a href="https://www.facebook.com/DavidIndeje/" target="_blank"><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1155CC;text-decoration:none'><img border=0 id="_x0000_i1027" src="https://cytonn.sheerhr.com/signature/icon/facebook-ico.png"></span><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1155CC'> </span></a><a href="https://twitter.com/David_Indeje" target="_blank"><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1155CC;text-decoration:none'><img border=0 id="_x0000_i1028" src="https://cytonn.sheerhr.com/signature/icon/twitter-ico.png"></span><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1155CC'> </span></a><a href="http://ke.linkedin.com/pub/david-indeje/17/7b9/647" target="_blank"><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1155CC;text-decoration:none'><img border=0 id="_x0000_i1029" src="https://cytonn.sheerhr.com/signature/icon/linkedin-ico.png"></span></a> <span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#666666'>Skype: david.indeje </span><o:p></o:p></p></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div><p class=MsoNormal><o:p> </o:p></p></div><p class=MsoNormal><o:p> </o:p></p><div><div><div><div><p class=MsoNormal>On Thu, 12 Jul 2018 at 09:47, Grace Bomu via kictanet <<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a>> wrote:<o:p></o:p></p></div></div></div><blockquote style='border:none;border-left:solid #CCCCCC 1.0pt;padding:0in 0in 0in 6.0pt;margin-left:4.8pt;margin-right:0in'><div><div><div><p class=MsoNormal>Hi Ali,<o:p></o:p></p><div><p class=MsoNormal><span style='font-family:"Arial",sans-serif'></span><span style='font-family:"Verdana",sans-serif'>With regard to the question of mobile money lending, it is a subset of micro finance in many ways. It definitely </span><span style='font-family:"Arial",sans-serif'></span><span style='font-family:"Verdana",sans-serif'>leads to more financial inclusion for the unbanked and provides credit to those who would normally not be targeted by banks. However, the interest rates are sometimes so high that one wonders if the goal is financial inclusion or bondage through credit. There needs to be more transparency by the lending apps not only about their rates but how these are derived, what data they hold and for how long. The money lending apps are also marketed in isolation from other important information that one needs in order to make the most out of credit. In comparison to microfinance for example, the institutions take time to educate borrowers about finance, business plans, loan repayment plans etc. There are also social structures like women groups or SACCO groups that assist borrowers to reach their goals with the money they borrowed. This is a gap with mobile money lending apps which are more impersonal and agnostic about the purposes for borrowing. <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Verdana",sans-serif'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Verdana",sans-serif'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Arial",sans-serif'></span><span style='font-family:"Verdana",sans-serif'>Regards</span><span style='font-family:"Arial",sans-serif'></span><span style='font-family:"Verdana",sans-serif'>,<o:p></o:p></span></p></div><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal><br><br>Il giovedì 12 luglio 2018, Ali Hussein via kictanet <<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a>> ha scritto:<o:p></o:p></p><blockquote style='border:none;border-left:solid #CCCCCC 1.0pt;padding:0in 0in 0in 6.0pt;margin-left:4.8pt;margin-right:0in'><div><div><p class=MsoNormal>Dear listers.<o:p></o:p></p><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Since the advent of Mpesa, Kenya has been recognized as Ground Zero for Mobile Money/Payments Innovation the world over. According to a World Bank report one in every ten human beings regularly using mobile money is a a Kenyan. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Over the last few years Fintech (Financial Technology) has become all the rage. American startups are setting up in Kenya. The more common ones that we know are Branch and Tala who combined have raised over $150m of venture funds in the last few years. These two are mainly mobile lending platforms. Insuretech is taking root. Payment Platforms are proliferating. Banks are jumping onto the Fintech Bandwagon with mainstream banks like Barclays and HF Group launching their mobile lending apps. Equity Bank boldly announced a few weeks ago that they are building an API Bank. Banking as a Service as it were.<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Not to be left out, Blockchain and it’s offspring, Bitcoin is threading to complete the upheavals in the financial sector. On top of it all the government is playing catch up on regulation with the announcement of the Finance Bill 2018. See analysis from KPMG on this.<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal><a href="https://home.kpmg.com/ke/en/home/insights/2018/06/finance-bill-2018-analysis.html" target="_blank">https://home.kpmg.com/ke/en/home/insights/2018/06/finance-bill-2018-analysis.html</a><o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>To ponder:-<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>1. Are we moving too fast? Is there a need to take a chill pill and reflect on the gains and achievements of the sector? Should we regulate lightly or heavily? <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>2. Should we regulate and cap the mobile lending platforms? Are they playing a crucial role of financial inclusion or are they just loan sharks on steroids? <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>3. How about the Credit Reference Bureaus? Are they stuck in a time warp or is the legislation in place encumbering them from innovation? <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>4. Lastly is the BlockChain conversation being overhyped? And how do you separate the technology from the cryptocurrencies it spawns? <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal style='margin-bottom:12.0pt'>Over to you Listers. <o:p></o:p></p><div><div><p class=MsoNormal><b>Ali Hussein</b><o:p></o:p></p></div><div><p class=MsoNormal><b>Principal</b><o:p></o:p></p></div><div><p class=MsoNormal><b>AHK & Associates</b><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;font-family:"Helvetica",sans-serif'>+254 0713 601113 <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;font-family:"Helvetica",sans-serif'><o:p> </o:p></span></p></div><div><p style='margin:0in;margin-bottom:.0001pt'>Twitter: @AliHKassim<o:p></o:p></p><p style='margin:0in;margin-bottom:.0001pt'>Skype: abu-jomo<o:p></o:p></p><p style='margin:0in;margin-bottom:.0001pt'>LinkedIn: <a href="http://ke.linkedin.com/in/alihkassim" target="_blank">http://ke.linkedin.com/in/alihkassim</a><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>"We are what we repeatedly do. Excellence, therefore, is not an act but a habit." ~ Aristotle<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><p class=MsoNormal>Sent from my iPad<o:p></o:p></p></div></div></div></div></blockquote></div></div></div></div><p class=MsoNormal>_______________________________________________<br>kictanet mailing list<br><a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a><br><a href="https://lists.kictanet.or.ke/mailman/listinfo/kictanet" target="_blank">https://lists.kictanet.or.ke/mailman/listinfo/kictanet</a><br>Twitter: <a href="http://twitter.com/kictanet" target="_blank">http://twitter.com/kictanet</a><br>Facebook: <a href="https://www.facebook.com/KICTANet/" target="_blank">https://www.facebook.com/KICTANet/</a><br>Domain Registration sponsored by <a href="http://www.eacdirectory.co.ke" target="_blank">www.eacdirectory.co.ke</a><br><br>Unsubscribe or change your options at <a href="https://lists.kictanet.or.ke/mailman/options/kictanet/davidindeje%40gmail.com" target="_blank">https://lists.kictanet.or.ke/mailman/options/kictanet/davidindeje%40gmail.com</a><br><br>The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.<br><br>KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.<o:p></o:p></p></blockquote></div><p class=MsoNormal style='margin-bottom:12.0pt'><br>_______________________________________________<br>kictanet mailing list<br><a href="mailto:kictanet@lists.kictanet.or.ke">kictanet@lists.kictanet.or.ke</a><br><a href="https://lists.kictanet.or.ke/mailman/listinfo/kictanet" target="_blank">https://lists.kictanet.or.ke/mailman/listinfo/kictanet</a><br>Twitter: <a href="http://twitter.com/kictanet" target="_blank">http://twitter.com/kictanet</a><br>Facebook: <a href="https://www.facebook.com/KICTANet/" target="_blank">https://www.facebook.com/KICTANet/</a><br>Domain Registration sponsored by <a href="http://www.eacdirectory.co.ke" target="_blank">www.eacdirectory.co.ke</a><br><br>Unsubscribe or change your options at <a href="https://lists.kictanet.or.ke/mailman/options/kictanet/nmutungu%40gmail.com" target="_blank">https://lists.kictanet.or.ke/mailman/options/kictanet/nmutungu%40gmail.com</a><br><br>The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.<br><br>KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.<o:p></o:p></p></blockquote></div><p class=MsoNormal><br><br clear=all><br>-- <o:p></o:p></p><div><div><div><div><div><div><div><p class=MsoNormal>Grace Mutung'u <br>Skype: gracebomu<br>@Bomu<br><span style='font-size:9.5pt'>PGP ID : 0x33A3450F</span><o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div></div></div></div></div></div></div></div></div></body></html>