The current state of finance in Kenya is undergoing a significant shift, with the increasing popularity of digital currencies reshaping the financial landscape.
As traditional banking products face limitations in reaching all segments of the population, digital currencies have gained traction as a more accessible and inclusive alternative.
Financial Sector Depending(FSD) CEO Tamara Cook stated that 23 percent of Kenyans are using traditional banking products.
This percentage is low and this is maybe attributed to the limitations of reaching the physical bank branches in rural areas.
“When thinking about the future of banking, think about the youth. because less youths are using less of traditional banking products and more of digital banking solutions,” said Cook.
Additionally, the cost of maintaining brick-and-mortar locations can make it challenging for traditional banks to expand their services to undeserved communities.
According to I&M 55 percent of users on its digital platform are below the age of 35.
“Today’s youth is tomorrows lucrative client base and banks shout start paying attention to this age group and find a way to attract them,” added Cook.
The youth play a pivotal role in driving future banking trends due to their comfort with technology and digital platforms.
As digital natives, they are the forefront of embracing innovative financial solutions and shaping the demand for modern banking services.
Their tech-savvy mindset and changing consumer behavior are influencing the shift towards mobile banking, digital wallets, and other digital payment methods.
With their fresh perspective and digital fluency, the youth are actively driving the evolution of banking towards more tech-driven systems.
Young people are more comfortable with technology of late hence they’re driving the demand for more digital and mobile banking options.
Their familiarity with digital platforms is pushing the digital banks to adapt and offer innovative and user-friendly services.
This shift is not only making banking services more convenient but also influencing the entire banking industry to embrace digital transformation to meet the evolving needs of customers.
An example of such digital transformations is what Central Bank of Kenya(CBK) recently added to their market.