MICROCAPITAL BRIEF: Caritas Microfinance Bank of Kenya Accesses Visa POS Network, Enabling Retail Transactions via ATM Cards

Kenya-based Caritas Microfinance Bank (MFB), a member of the Catholic development organization Caritas Nairobi, recently partnered with the Co-operative Bank of Kenya to allow Caritas MFB customers to make retail purchases using their automated teller machine (ATM) cards. These point-of-sale (POS) purchases can be made at retailers that accept payment cards issued by Visa, a US-based firm providing POS services to 46 million businesses worldwide.

Caritas MFB acquired its microfinance banking license from the Central Bank of Kenya in 2015. As of 2018, it has 5 branches and 16 banking agents, and approximately 80 percent of its transactions are performed on mobile platforms. By December 2018, the bank plans to have engaged a total of 50 agents. By 2020, it plans to have 12 branches, including new ones in areas such as the county of Kiambu.

In addition to offering microfinance, Caritas Nairobi offers agriculture and “relief” services with the goal of increasing the “self-reliance of 10,000 targeted households and sustaining social justice to vulnerable groups including women, youths, refugees and people living in informal settlement[s] within the [Archdiocese of Nairobi] by 2018.”

Caritas Nairobi is one of 160 members of Italy-based Caritas Internationalis, a Catholic confederation working to “build a world based on justice and fraternal love.” Founded in 1951, the organization provides direct services in areas such as preventing human trafficking and the spread of HIV. In 2017, Caritas Internationalis had an annual budget of sounds low EUR 5.5 million (USD 6.3 million). Its members are active in approximately 200 countries.

The Co-operative Bank of Kenya, which was founded in 1965, serves 7.1 million customers as of 2018. As of 2017, it had total assets of KSH 383 billion (USD 3.8 billion), customer deposits of 286 billion (USD 2.8 billion) and a gross loan portfolio of KSH 252 billion (USD 2.5 billion).

By Michelle Fleming, Research Associate

Sources and Additional Resources

The Exchange article
https://www.exchange.co.tz/caritas-microfinance-bank-using-coop-bank-to-increase-footprint/

Caritas homepage
https://caritas-mfb.co.ke

Caritas Internationalis homepage
https://www.caritas.org/

Caritas Nairobi homepage
http://www.caritasnairobi.org

Cooperative Bank homepage
https://www.co-opbank.co.ke

Visa homepage
https://visa.com

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