Family Bank with the help of Modefin, came up with the product/service called PesaPap. This product is pitted directly against the M-Pesa app (Safaricom). The PesaPap wallet provides an opportunity to save, access loans, and transfer funds. It goes one step further, by offering the same to non-Family Bank customers too. The biggest advantage here was that such transactions are completed free of cost (M-Pesa charges a small fee)
The introduction of the app came at a time when people required such a service from the comfort of their homes. SMEs or customers would prefer accessing such loans through their phone rather than go through the hassle of approaching a branch. The mobile loans are instant; to be repaid within 30 days. The app can also set up investment goals for customers for 3-12 months with interest.
The year 2018 saw about 70% of the transactions (SMEs) being conducted through the app. The automation and digitisation afforded other advantages such as a differentiated customer experience, where MSME bank loans are disbursed based on the SME business account, and its activity. Further, suppliers of such MSMEs were able to get instant cash (invoice discounting) against money owed by MSMEs.