Standard Chartered Bank Kenya has become the first commercial bank in Kenya to launch bond traded exclusively through mobile phone, the Bank announced Monday.
Through the Standard Chartered Mobile App client will be able to buy or sell local currency government bonds and treasury bills without the hustle of visiting a branch to fill in forms. The clients will also be able to view the list of available securities to be traded through the bank’s Mobile App for the trading day, see transaction history for previous deals submitted, and learn more about local government bonds trading through educational page.
“Today we have added another first to our digital banking innovation as we continue to expand our digital offering across our banking spectrum. We are happy that this launch will go along away in supporting the Government quest for financial inclusion,” Standard Chartered Bank Kenya Head of Wealth Management, Paul Njoki said.
The Bank becomes the second entity to launch mobile traded bonds and bills after the Kenyan Government launched the world’s first Treasury bond in 2015 offered exclusively via mobile phone and in a bid to stimulate public participation in the capital markets, raise money cheaply and boost the national savings rate.
In January this year the Kenya government through Central Bank of Kenya (CBK rolled out another mobile-based service dubbed CBK-TMD, which will enable users to place applications/bids for Treasury Bills and Treasury Bonds, receive auction results, receive notifications for payments made, query their CDS accounts, and query Treasury Bills and Bonds on offer.
The minimum investment amount for the Standard Chartered Mobile traded bond has a face value of KSh100, 000, while the maximum one can trade on the app, is capped at KSh10 million.
“Client journey is completely paperless for trades less than KSh10 million and we believe that the minimum amount will appeal to a larger number of clients,” Mr. Njoki said.