KCB customers in Kenya now have the opportunity to receive funds seamlessly from the diaspora into their Kenyan accounts thanks to a partnership with Mobex, an affiliate of TerraPay Group, a digital payments infrastructure and solutions provider headquartered in the UK.
KCB Bank, with the integration of TerraPay, intends to enhance its position as a significant player in the global payments ecosystem by providing its customers with easy, competitive, and faster services that leverage the rising demand for digital channels.
The Bank has taken the lead in promoting and increasing financial inclusion through partnerships with fintech institutions to develop into a preeminent global processor of remittances and payments across the globe.
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Executives comment on the partnership
Speaking on the partnership, Mrs Annastacia Kimtai, Director of Retail Banking at KCB Bank, said, “We are reiterating our commitment to using technology and strategic partnerships to ensure that our customers will continue to take pleasure in the liberties provided by modern banking. We are harnessing fintech skills to establish links and strategic alliances with like-minded partners to ensure that our consumers have access to world-class remittance services.”
Ambar Sur, TerraPay’s Founder and CEO, said, “This is an exciting moment for cross-border payments. Through our new partnership with KCB Bank, we can make fast, safe, and reliable payments across Africa and Asia, removing the obstacles to international money transfers.”
Remittance inflow progress in Kenya
According to the Central Bank of Kenya, remittance inflows to the country increased by 10 per cent, from US$2,796 million in 2019 to US$3,095 million in 2020, accounting for three per cent of the country’s Gross Domestic Product (GDP). This is contrary to projections in 2020 that predicted remittances in low and middle-income countries would likely decrease due to the pandemic. In September 2021, it increased from $ 3.5 billion (Kshs. 427 billion) to $ 4 billion (Kshs (Kshs. 484Bn) in September, 2022.
Despite widespread limits on movement and lockdowns during the COVID-19 pandemic, remittance flows to Kenya have increased due to financial advances that have provided more convenient channels, such as utilizing mobile phones for transactions.
Although the widespread adoption of technology and the integration of mobile phone financial services has decreased the cost of transactions from 15% to 8% over the past decade (Kenya ranks third in sub-Saharan Africa), more work needs to be done to reach Sustainable Development Goals (SDG) recommended target of 3%.
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About KCB Bank Kenya Ltd
KCB Bank Kenya Limited is the most prominent financial institution in Kenya. With over 200 branches, 367 automated teller machines, and 16,000 agents, the bank, part of KCB Group Plc, has the most extensive branch network in East Africa. The Bank also offers customers 24-hour access to a contact centre and mobile and online banking services.
KCB Group Plc also has a presence in Uganda, Tanzania, South Sudan, Burundi, and Rwanda, and a representative office in Ethiopia also boasts of a vast network of correspondent relationships totalling over 200 banks across the globe, and our customers are assured of seamless facilitation of their international trade requirements wherever they are.
About TerraPay
TerraPay is a worldwide partner to banks, mobile wallets, money transfer operators, merchants, and financial institutions, facilitating a more extensive and inclusive international financial ecosystem with its regulation and approval in 26 global countries. With access to a payments infrastructure that spans the globe, their partners become beacons of the promise of global financial inclusion.
The group operates on the principle that even the most minor transaction is entitled to the same secure, borderless treatment as the biggest. The organisation has been working to develop a global payments highway that provides a direct, secure, and instantaneous transit for all financial transactions, no matter how large or location.
