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An MPESA Statement is an alternative means of knowing your financial standings that would otherwise be depicted by your bank statements. It’s equally an easier way to analyze the financial standings of people not easily vettable by their bank statements (if any)

Fintech platforms have greatly revolutionized the finance market in Kenya. In fact, statistics from the financial sector Kenya deepening (FSD) show that mobile lending has more than doubled over the years. This has highly impacted the credit sector with many households accessing loans straight from their mobile devices. Despite the milestone achieved in bridging the gap for the un-bankable Kenyans, loan defaulting remains a thorn in the flesh.

A report released by the credit Referencing Bureau (CRB) indicates that 70% of mobile loan defaulters are likely to borrow again and still default. In another report published by Business Daily, a top-tier business publication in Kenya, the number of loan defaults in traditional finance institutions has crossed the Kshs 403 billion mark. Though this may be attributed to a souring economy linked to the advent of covid 19, the need to review the credit history of borrowers cannot be underscored.

To counter the effects of digital loan defaults, Bayes, like many other digital lenders have opted to increase surveillance by putting in place various checks and balances in loan applications. In that case, most digital lending platforms are now asking for at least a six months MPESA statement to verify the financial ability of borrowers.

However, a move by most digital lenders to impose strict measures on loan applications has helped alleviate loan defaults. So, how has the MPESA statement requirement impacted the digital lending market? We put that into perspective.

Mpesa Statement requirement

Though most digital loan platforms do not lock out CRB-listed individuals from applying for loans, borrowers are required to provide their MPESA statement. This helps lenders to ascertain the financial health of borrowers before approving their loan requests. The requirement is not only limited to Bayes but also applies to most traditional finance players in Kenya.

What’s an MPESA Statement?

An MPESA statement is typically a ledger document indicating the MPESA transaction history of users. It contains all the MPESA information depending on the period you choose. When sent, you have to type your password or ID number to open the document.

How to access your M-Pesa statement

You can access your MPESA statement in the following ways.

Through SMS

To retrieve an MPESA statement, you must first ensure you are using a Safaricom line. To access via SMS, simply follow the following steps.

Step 1; Dial the Safaricom’s USSD service short code *234#
Step2; Respond by pressing 1 (MPESA statement)
Step3; You can choose whether you need a full or mini statement on the next prompt
Step4; You will receive a service reply message confirming that you will receive the statement in a while.

MPESA statement unlocks your loan potential

While mainstream finance institutions focus on CRB listing, most digital loan platforms focus on the financial health of individuals. This helps them ascertain the borrower’s financial ability.

Since most digital borrowers do not have traceable financial records, digital loan platforms use MPESA statements to guide them in disbursing loans. The higher the number of MPESA transactions the higher the chances of securing a higher loan limit. It is against this backdrop that loan applicants on most digital loan platforms are required to submit MPESA statements to ascertain their financial health.

What are the common loan evaluation criteria on digital lending platforms?

Every digital loan platform in Kenya has varied criteria used to evaluate loan applications. The following are common loan evaluation criteria on most online lending platforms.

At least a six months MPESA statement
CRB listing
Loan repayment History i.e. Delays in loan repayment affects your loan limit
Bank statement

However, loan evaluation criteria varies from one digital lending platform to another.

Final thought

Though digital lending is popular among Kenyans, the high number of defaulters calls for tighter measures to screen borrowers. This is why requirements such as MPESA statement, CRB, and many other stringent loan application requirements are gradually creeping into the digital lending market. Remember a healthy credit history is important to unlock higher loan limits across various digital lending platforms.

Do you have a clean credit record and need a loan? Simply download and install the Bayes app here to unlock your digital loan.

Despite exponential growth in the Kenyan Digital lending market, identifying a credible online lending platform remains a challenge among most households. This is why the Bayes Loans App comes in handy to help individuals and entrepreneurs access loans with ease. Besides managing bills, Bayes customers can access loans straight from their mobile devices.

So, why is digital lending popular in Kenya? Let’s dive into the finer details.

Bottlenecks in digital lending applications by traditional lenders

To qualify for a loan in traditional finance institutions, one has to either line up a few guarantors, present security, and this may be in the form of a logbook, title deed, or any other valuables.

However, in some cases, borrowers have to submit a bank statement to ascertain their financial health. Unlike tough loan conditions imposed by traditional lenders, the Bayes Loans App simplifies the loan application process.

CRB listing

A report published by the Business Daily, a top-tier Kenyan Business Publication, indicates that slightly over 14 million Kenyans have been blacklisted by Credit Reference Bureau (CRB). Arguably this is a challenge to the lending sector.

Bayes, as one of the key digital lenders in the Kenyan market, we are currently instituting measures aimed at educating our customers on responsible digital credit. The strategy is meant to dissuade prospects from getting saddled with unnecessary debts that they are unable to service.

Fast approval

Unlike bank loans that take time to be processed, digital lending applications offer quick loans. All you need is download an app from the play store, install it on your device, register, and request a loan. The Bayes loan app approves applications in minutes. However, the loan processing period varies from one platform to another.

Time-saving

Rather than waste time either calling a bank or spending hours queuing to request a loan, you can opt for quick digital loans to cater to your immediate needs. Simply, download the Bayes Loans App on your smartphone, register, and request a loan. In order to increase your loan limit on most digital loan platforms, you must adhere to the stipulated loan repayment schedule. In the event you are an entrepreneur hoping to expand your business through digital credit, then you must always repay loans in time, this helps unlock a high loan limit in the future.digital lending
Flexible repayment schedule as a key factor in the growth of digital lending in Kenya

The impressive aspect of digital lending is the flexible repayment schedule. Contrary to Bank loans that may easily subject you to auctioneers, most digital lenders in Kenya have a flexible customer support. In addition, you can always contact your digital lender to negotiate a convenient repayment schedule that favors your financial ability. The model applies to Bayes customers who can easily renegotiate their loan schedule to suit their financial status.

Scale and manage cash flow

Through a study conducted by Geopol on behalf of Kenya’s Digital Lenders Association (DLAK), the common parameter that makes mobile loans appealing to most traders is fast access without paperwork. Nevertheless, the untimeliness in accessing the lending platforms makes digital lending more attractive to borrowers.

What does this portend? Borrowers can access mobile loans any time straight from their mobile devices. During the survey,83% of lenders expressed high satisfaction with digital lending platforms. The survey further indicated that slightly over 53% of traders who borrowed digital loans used the amount to purchase goods, while another 19% used the money to cater for emergencies.

The impressive aspect of the Geopols findings is that close to 84% of entrepreneurs who borrowed mobile loans experienced growth in their business. In comparison, over 45% of the digital borrowers indicated that they might not use any other alternative ways of borrowing safe for mobile lending. This demonstrates how crucial digital lending has become among Kenyans.

Final thoughts

Digital lending is a perfect alternative to traditional finance players. In case you have been locked out from borrowing in traditional finance institutions for various reasons, then it’s high time you try out digital loans.

Besides quick and easier access, digital lending offers a perfect opportunity for borrowers to access credit at the comfort of their homes. A product of Pi Capital Ltd, the Bayes app helps you borrow and manage your finances straight from your mobile phone.

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