Fintech is an abbreviation of financial technologies and it has been at the center stage of closing the financial inclusion problem in most parts of Africa and Kenya in Particular. Part of Kenya’s debt problem can be solved by integrating more Kenyan adults both youth and seniors into the money economy. Have them all banked. It is on this note that Telkom Kenya, in partnership with the government of Kenya will develop a youth-focused digital wallet to relieve them from financial exclusion during the pandemic.
The telco has signed an agreement with the Ministry of ICT’s National Youth Council of Kenya (NYCK) to co-create ‘Fursa’, (Swahili for opportunity) a platform that allows the council to disburse funds to youth conveniently, faster, securely and timely. This solution will increase the youth’s resilience in the midst of physical and infrastructural barriers that obstruct their access to financial services and products.
The Financial Sector Deepening (FSD) Kenya estimates that 23% of the 18-25 year-olds are excluded from financial services and products and that financial services providers have no solutions targeted at youth.
Fursa will be customised to contain additional capabilities: a membership management system, financial reconciliation, savings and investments, experience board for job matching and e-learning as well as experiential skill development.
Telkom’s Chief Executive Officer, Mugo KIBATI says that this collaboration is the first of many such Digital Financial Services partnerships that the company will be exploring, with the potential to accelerate the economy into cash-lite status.