One out of four accounts ‘dormant’ as mobile money takes over banking
Consumers are gradually ditching their financial institution accounts and shifting to mobile money due to the ubiquity and expanded utility of cellphone-based cash services. TEA GRAPHIC | NATION MEDIA GROUP
Nearly one out of every four bank accounts in East Africa remains inactive as consumers trade traditional banking for the convenience of mobile money services, the findings of two separate studies show.
Rwanda tops the list with 37 per cent of its bank accounts classified as dormant — unused for more than 90 days — followed by Kenya with 25 per cent inactive accounts, according to a study by InterMedia, a Washington-based research firm.
