Equity Bank, one of Kenya’s leading financial institutions, has introduced a mobile overdraft facility for its customers in a strategic initiative set to rival Safaricom’s Fuliza overdraft service.
The new overdraft tool will allow Equity Bank clients to pay for goods or services and send money even when they have insufficient funds. Customers can top up between Sh100 and Sh100,000 based on their limit at the time of the transaction. The repayment terms are set within 30 days from the day of uptake of the credit.
This service is a response to the growing demand for flexible banking solutions in Kenya like Faraja, another credit facility offered by Safaricom in partnership with EDOMx which allows customers to buy goods and services or pay bills even when they have insufficient funds.
The adoption of overdraft facilities has gained prominence in recent years, with telecommunications companies and banks racing to offer these services. Equity Bank’s new service is a significant addition to this trend, providing a much-needed financial cushion for its customers.
Equity Bank’s introduction of the mobile overdraft facility underscores the dynamic nature of the banking industry. It highlights the growing importance of digital solutions in meeting customer needs and enhancing the banking experience.