THE ROLE OF REALTIME INTERBANK TRANSFER IN KENYA’S FINANCIAL SECTOR
Abstract
Instant interbank transfers within Kenya is a capability that is yet to be explored to its optimum capacity. Similar systems are present in other parts of the world and is slowly gaining popularity in Africa, currently big in Nigeria where it boasts successful implementation as Nigeria’s most preferred funds transfer method in its financial sector. The full potential of this system in Kenya not only remains unutilized by the industry but also unexplored by scholars. This study aimed to explore the possible opportunities presented by the system, how to put it to use for better payment methods, improved customer experience and its place in enhancing the country’s overall financial system. The study concluded that this capability plays a significant role as a potential game changer in the country’s financial sector. Instant interbank payments allow individual consumers, merchants, corporates, FinTech’s, banks and international money transfer companies to access an endless list of possibilities that can change the way they do business and power payments. It opens up a whole new world of mind-blowing possibilities of efficiency, real-time payments, realization of 24/7 economy, intermediation, corporate cost-cutting, affordability, return of liquidity to the banks, seamless access to utilities, interoperability, regional partnerships, improved customer experience among others. All these will have an overall key role on enhancement of the country’s financial sector.
Keywords: Instant Interbank Transfers (IIT), Interoperability, Liquidity, Financial Sector Enhancement, Fintech, Payments.
CITATION: Amayo, S. A. (2019). The role of realtime interbank transfer in Kenya’s financial sector. The Strategic Journal of Business & Change Management, 6 (4), 1522 – 1537.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1485
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