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</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 Listers,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>To add to Bomu’s contribution on bondage through credit.<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'>A dark side of mobile lending has occurred. That of defaults.<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'>A month ago we had various news stories of approximately 500,000 Kenyan’s listed at the CRB for default on mobile loans<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=MsoListParagraph style='text-indent:-.25in;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-size:11.0pt;font-family:Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><a href="https://www.tuko.co.ke/275984-500000-kenyans-blacklisted-by-credit-bureau-defaulting-mobile-loans.html#275984">https://www.tuko.co.ke/275984-500000-kenyans-blacklisted-by-credit-bureau-defaulting-mobile-loans.html#275984</a></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p><p class=MsoListParagraph style='text-indent:-.25in;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-size:11.0pt;font-family:Symbol;color:#1F497D'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><a href="https://www.the-star.co.ke/news/2018/06/12/mobi-cash-borrow-now-cry-later_c1771259">https://www.the-star.co.ke/news/2018/06/12/mobi-cash-borrow-now-cry-later_c1771259</a> <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'>Best 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 09:45<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><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></body></html>