I&M Bank has announced that it will not be reintroducing fees for bank to mobile money transactions, a move that is sure to be welcomed by its customers. The decision was made with the goal of making digital banking more accessible and affordable for Kenyans, and is part of I&M’s broader strategy to improve customer service and drive growth in its digital banking sector. I&M is the first bank in Kenya to make this bold decision.
In making this decision, I&M considered a number of factors, including customer feedback and input, market trends, and the bank’s long-term strategy for digital banking. According to Michael Mwangi, I&M’s General Manager of Digital Business, the bank wants to ensure that its digital banking services remain competitive in the Kenyan market, and that they meet the needs of its customers. He said this announcement embodies their belief in a customer-first approach.
The bank said that from today, it will offer zero fees for Bank to M-Pesa and Airtel Money transactions. The bank added that it has plans to include T-Kash transactions for Telkom users.
“As part of our approach to service delivery, recent customer feedback showed that as much as our transaction rates are favorable, there was an opportunity to review our policies on bank to mobile money wallet charges for the digitally active customers,” Mwangi said in a statement. “We believe this move will offer new and existing customers to transact on mobile.”
According to I&M, since the re-introduction of the Bank to mobile money charges, the bank hasn’t seen any significant changes. This means that people are still sending money to mobile wallets as they did back when the charges were waived as a result of the COVID pandemic.
The decision not to reintroduce fees for bank to Mpesa transactions is likely to have a significant impact on I&M’s customers, who will no longer have to pay fees to transfer money from their bank accounts to Mpesa or Airtel money.
The decision not to reintroduce fees for bank to Mpesa transactions also fits into the competitive landscape of the digital banking space in Kenya, where other banks and financial services providers are offering similar services. I&M plans to differentiate itself beyond not charging fees by providing excellent customer service and support, and by continuing to innovate and adapt its digital banking services in response to changing customer needs and behaviors. The bank has and will continue investing in its mobile banking services as the year progresses.
“A key focus for the bank since the launch of our current iMara 2.0 strategy is to enhance our digital banking solutions to meet the needs of our customers. We look forwards to seeing these numbers grow with digital transactions gaining favor among our digitally active customers,” concluded Mr. Mwangi.
While the decision not to reintroduce fees for bank to Mpesa transactions is likely to be welcomed by I&M’s customers, there are potential challenges and risks associated with this decision. I&M expects some impact on their bottom line but does not expect a huge hit as they will hopefully attract new customers. The bank will also need to monitor customer adoption and usage of the service, and make adjustments as necessary to ensure that it remains accessible and affordable for all Kenyans.