M-Bureaus: M-Banking's Next Killer Application?

This paper examines whether mobile transaction data in Kenya provide enough of a foundation for building a credit information system for the base of the pyramid (BoP). It also seeks to determine the level of interest in public-private partnerships among stakeholders. There is interest in the potential of mobile transaction data to inform credit decisions and increase low-income groups' access to financial services. The study finds that:

• Kenya is in the midst of establishing an enabling environment for sharing credit information systems;
• Kenyan telecom regulations currently prohibit disclosure of mobile network operators (MNO) and m-payment data that credit bureaus would need;
• MNOs and m-payment providers need a clear and compelling business case to share information with a credit reference bureau. 

Kenya is at least one to two years away from having a functioning credit reference bureau. The focus of the industry, therefore, is on reaching this initial goal. It is important to consider the current state and continuing development of the Kenyan financial system when designing interventions. The development sector, financial sector, telecom sector and public sector need to work together to achieve sustainable economic growth.