Dec, 7th 2020 – Kenya’s largest telecommunication firm, Safaricom is seeking regulatory approval in its bid to launch insurance, Unit trust and saving products. The company has been testing three products namely, Bima insurance, Mali mobile savings and a unit trust investment product.
They have contacted the Capital Markets Authority, Central Bank of Kenya and the Insurance Regulatory Authority for approval of the commercial launch of their products.
This is Safaricom’s plan to ensure that it grows the mobile money platform by adding insurance and wealth management to the available services of sending and receiving money, tapping into loans as well as paying for goods.
On its quest the firm seeks to switch about 4 million 2G and 3G phones to 4G in order to reverse the falling revenue from mobile calls even though the market is saturated.
According to Safaricom CEO Peter Ndegwa, the target market is customers who transact about Sh1.5 trillion monthly who are about 26.7 million in number so that they can grow the savings, unit trust and insurance products.
The launch of this new product follows Safaricom’s parent firm Vodafone group, disclosing that it looks forward to partnering with Chinese Digital payment Provider, Alipay, to extend M-Pesa into financial services.