In a surprising turn of events, a recent survey has found that more individuals in Kenya are opting for traditional banking services, despite Africa's growing trend towards mobile banking. According to the 2024 FinAccess Household Survey, mobile banking usage in Kenya decreased from 34.4% in 2021 to 31.2% in 2024.

The survey, conducted by the Central Bank of Kenya, the Kenya National Bureau of Statistics, and Financial Sector Deepening Trust Kenya, provides valuable insights into the country's banking habits. One of the key findings is that older adults (55+) have shown an increase in traditional banking usage, likely due to the Government's cash transfer program.

Urban areas saw a higher adoption of mobile banking, with 45.5% of users preferring this method, while rural areas showed a significant increase in traditional banking usage, with 58.4% of users preferring to visit bank branches for banking services. This trend highlights a shift where younger, urban users favor mobile banking, while older and rural populations rely on traditional methods.

The survey also found that bank branches remain the most common banking access point, with 52.8% of users preferring physical interactions. Women slightly preferred physical interactions, with 53.3% of female users visiting bank branches, compared to 52.5% of male users. Mobile banking apps were popular, especially among urban residents, but a gender gap persists, with 41.4% of men using apps compared to 34.3% of women.

Other common channels include bank agents (19.7%), pay bill services (19.5%), and online banking (3.7%). Less used channels include others, such as Pesalink, bank transfers, and PSPs.

Despite the decline in mobile banking usage, the survey's main takeaway is the significant 84.8% rise in formal financial access during the year, driven by digital advances and regulatory reforms. This increase has nearly closed the gender gap in formal access, highlighting the importance of digital technology in expanding financial inclusion.

The 2024 FinAccess Household Survey provides valuable insights into Kenya's banking habits and highlights the need for financial institutions to adapt to changing user preferences. As the country continues to navigate the digital landscape, it will be interesting to see how banks and fintech companies respond to these shifting trends.

The survey's findings have significant implications for the fintech industry, as companies will need to reassess their strategies to cater to the growing demand for traditional banking services. With the rise of digital payments and mobile banking, it is crucial for financial institutions to strike a balance between innovation and traditional methods to meet the diverse needs of their customers.