Banks have always been slow to catch up with new developments in their sector not because they do not see potential, but because they are extremely regulated.
They have to demonstrate that they are not taking up risky ventures.
It took banks years to catch up with M-Pesa when they finally launched PesaLink last year. It is said that they may have allowed telcos firm Safaricom too much time to be entrenched as the market leader to challenge it.
Before the price of loans was capped in September 2016, banks had warned that the law would push borrowers into the thorny embrace of loan sharks.
Two years later, and with the Banking Amendment Act, 2016 still firmly in place, commercial banks are morphing into loan sharks. Banks, which are regulated by Central
Bank are getting into unregulated activities which experts describe as shadow banking system. Read more
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