Stanbic Bank Launches Short-Term Loan for Suppliers

Stanbic Bank Kenya has now made it possible for suppliers and distributors to access short-term mobile loans.

This is after the bank launched “M-Jeki”, a new automated supply chain financing platform. Its aim is to offer short-term business loans on the basis of client needs across sectors and industries.

The launch was preceded by a successful pilot conducted in conjunction with Safaricom agents and dealers. They were given automated short-term business loans to help them finance devices, M-Pesa float, and airtime.

Agents and dealers totaling 314 were able to access the short-term loans amounting to Sh10.3 billion over the last 12 months.

Thomas Bisonga, the Head of Business at Stanbic Bank of Kenya, cited technology as the main driver behind the new technology.

“At the core of this proposition is a robust technology platform to facilitate convenient delivery of the solution,” he said.

He added that the inspiration for the solution came from feedback from suppliers and distributors, who experienced constant pain points from having to wait for the requisite 30 to 90-day period for the maturity of invoices for payments.

Stanbic Bank has also entered into a partnership with a local fintech, Virtual City, to build a sturdier platform.