Temenos Group AG, a provider of banking software systems, has announced that its banking application T24 is being used as the platform for M-Shwari, the new iteration of the M-Pesa mobile money offering.
M-Shwari takes the M-Pesa service to the next level, opening a range of banking services including interest bearing savings accounts and micro loans to M-Pesa subscribers, the company said.
M-Shwari is a partnership between Safaricom, Vodafone, and Temenos client Commercial Bank of Africa (CBA). It uses the TEMENOS T24 R12 banking solution to help support the processing of electronic loan and bank account transactions made through the M-Pesa platform. This is the next step for the M-Pesa initiative, ensuring an increase in access to a wider range of financial services by providing customers with access to savings accounts and small loans through their mobile phones.
Safaricom customers can sign up to the M-Shwari interest bearing savings account or apply for micro loans, provided by CBA, directly through the M-Pesa menu on their phone. There are no forms to complete or any need to visit a bank branch. If successful, the loan money is sent by CBA to the customer's M-Pesa account immediately, highlighting the convenience and simplicity of M-Shwari, the company added.
The M-Shwari system is connected to a Government of Kenya database to enable Know Your Customer (KYC) verification during customer enrolment, and uses a credit score algorithm based on their credit history as well as usage of Safaricom products, to determine a customer's loan eligibility and maximum loan amount.
David Arnott, CEO, Temenos, says: "Temenos is very proud to be involved with M-Shwari, the next phase in M-Pesa's hugely successful journey. Our involvement advances two of our most important corporate objectives: firstly, to be at the forefront of technology innovation in the financial services industry and, secondly, to advance technology as a means of lowering costs and making banking services more accessible. Today, there are 5bn mobile phone subscribers compared to 2.2bn bank account holders and so mobile banking represents a big opportunity to bank the unbanked. We are delighted to be working with CBA and others to help realise this opportunity."