Family Bank’s PESAMOB Virtual Bank optimized for cashless payments in public transport

Family Bank CEO Mr Peter Munyiri (R) flanked by
the Bank's Chief Operations Officer Mr. Kereri Muya (L)

Local commercial banking services provider, Family Bank, has swiftly moved to optimize its PESAMOB virtual bank account to act as a cashless payment option for the local public service vehicle operators.                                                                                                                                

The optimization of PESAMOB virtual account is consistent with the recently published National Transport and Safety Authority regulations.

The regulations published by Transport and Infrastructure Cabinet Secretary, Eng. Michael Kamau now compels all Public Service Vehicles (PSV) to operate a cashless fare payment system commencing 1^st July 2014 this year. As part of the regulations, PSV operators will also be required to ensure that passengers are issued with tickets or receipts for fare paid.

Speaking when he announced the optimization, Family Bank Managing Director Peter Munyiri disclosed that the Pesamob virtual bank product will now provide a convenient option for the rollout of the new cashless fare payment regulations.

“PESAMOB remains Kenya’s first Virtual bank account product and we have successfully managed to further enhance its application which will include cashless fare payment options,” Munyiri said.

And added: “The optimization involved the integration of a feature that allows matatu operators to open dedicated PESAMOB virtual accounts allowing passengers to simply make cash transfers at no charge.”

Launched last December, PESAMOB; a robust mobile phone based virtual bank, is geared at deepening financial services access by easing account opening and operation processes.

The virtual bank of a kind runs on Family Bank’s PesaPap! platform and targets to foster financial inclusivity to more than 3million Small and Medium traders alongside unbanked mobile subscribers.

During the launch last year, Munyiri confirmed that PESAMOB, Virtual Bank, is, designed to provide affordable differentiated services from conventional mobile banking solutions.

The new PESAMOB Virtual Bank, he disclosed will provide a full suite of banking services allowing its account holders to deposit cash, transfer, withdraw over ATM locations, and access micro loan facilities conveniently.

The launch of PESAMOB, Munyiri further acknowledged has been inspired by the growing consumer adoption of mobile phone based financial services. Industry statistics released earlier this year, he noted had confirmed that the number of active mobile phone financial services users (11.5 million) had more than doubled the number (5.4 million) of active bank account holders in the local banking sector.

In tandem with the growth, the use of mobile phone financial services, he pointed out had also doubled from 28% in 2009 to 62% in 2013, justifying the need for a fully-fledged virtual bank.

“At Family Bank, we are actively moving to change the local banking conventions as we know them by introducing such a groundbreaking banking solution as PESAMOB,” Munyiri said. And Added: “Besides boosting the national Financial inclusion goals, PESAMOB gives you the freedom to access loans, transact and save your cash without ever having to visit a physical banking hall.”

During the launch event presided over by Central Bank of Kenya Governor Prof Njuguna Ndung’u, the Family Bank boss explained that PESAMOB account holders will enjoy exclusive standard feature services such as MPESA money transfer, Airtime Purchase, Bill Payments, Balance Enquiry and provision of Mini Statements.

To enjoy the PESAMOB Virtual Bank Services, Munyiri explained that potential account holders will only need to Dial *325# from their mobile phones and follow simple prompts allowing them to activate their secure personal Virtual bank accounts.

According to the 2013 Financial Access (FinAccess) Surveys compiled by the Central Bank of Kenya and Financial Sector Deepening (FSD) Kenya, Kenya’s financial inclusion landscape has undergone considerable change in recent years.

The country’s financial inclusion landscape has significantly expanded with proportion of the adult population using different forms of formal financial services now standing at 66.7% in 2013 compared to 41.3% in 2009. The proportion of the adult population totally excluded from financial services has also declined to 25.4% in 2013 from 31.4% in 2009, easily vindicating the suitability of policy strategies and reforms by government as well as financial sector players’ initiatives and innovations such as Family Bank’s PESAPAP platform.