Kenya’s new cellphone money model could disrupt global banking industry

"M-Shwari is a new banking platform that allows subscribers of Kenya’s biggest mobile network, Safaricom, to operate savings accounts, earn interest on deposits, and borrow money using their mobile phones. It expands on Kenya’s revolutionary use of sending money by mobile phone — known as M-Pesa, “mobile money” in Swahili — launched in 2007 and now widely used across the east African nation, where some 70 percent of people have mobile phones.

With a minimum transfer of cash set at five shillings — around five US cents — the application revolutionised day-to-day banking for millions left out of the formal system, and is used for transactions ranging from sending money to far-away relatives to paying utility bills or even school fees. Now it is hoped the new M-Shwari application — meaning “no hassle” — can do the same for savers and borrowers."