Kenya’s evolving credit landscape reveals a financial sector that is grappling with challenges centered around multi-regulatory compliance, fintech disruption, cyber security threats, digital transformation and data privacy concerns to name just a few. Specific to 2024, the sector has witnessed increased credit risk evidenced by a rise in NPLs reported as 16.3% as at June 2024 largely driven by a harsh macro-economic environment, inflationary pressures and political tensions.
Against this, financial institutions are keen to exploit data and analytics to expand their knowledge on new and existing customers’ preferences against emerging cultural shifts. For instance, customer segments such as Gen Z cannot be ignored requiring financial institutions to be intentional about customizing product design, delivery and support channels to suit the demands of this segment. Overall, focus is on customer-centric models that factor transparency on relevant disclosures, risk-based pricing and dispute resolution.
The delicate responsibility of balancing returns and risks amid intense pressure for profits, compliance and sustainability lies squarely on decision makers.
How can financial institutions register growth and profitability in a rapidly changing market? Join us as we unpack this and more at the inaugural National Credit Market Convention where interactive discussions will be guided by industry experts with long standing experience in financial sector issues.
