A new survey has revealed a surprising trend in Kenya's banking landscape, with more individuals ditching mobile banking for traditional banking services. According to the 2024 FinAccess Household Survey, mobile banking usage in Kenya decreased from 34.4% in 2021 to 31.2% in 2024. This shift is particularly notable among older adults (55+), who showed an increase in traditional banking usage, likely due to the Government's cash transfer program.

The survey, conducted by the Central Bank of Kenya, the Kenya National Bureau of Statistics, and Financial Sector Deepening Trust Kenya, highlights a demographic divide in banking preferences. Urban residents, particularly younger users, favor mobile banking, while older and rural populations rely on traditional methods. For instance, urban usage came in at 45.5%, while rural adoption increased to 23%.

One possible reason for this development is the preference for physical interactions in rural areas, where 58.4% of residents prefer visiting bank branches for banking services. In contrast, urban residents (48.2%) typically opt for mobile banking services. The survey also reveals a gender gap in mobile banking usage, with 41.4% of men using apps compared to 34.3% of women, reflecting a digital gender divide.

Despite the decline in mobile banking, 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 survey's findings have significant implications for the banking industry in Kenya, particularly in terms of tailoring services to meet the diverse needs of different demographics. As the Kenyan government continues to implement initiatives aimed at increasing financial inclusion, understanding the preferences and behaviors of various population segments will be crucial in achieving this goal.

The 2024 FinAccess Household Survey provides valuable insights into Kenya's banking landscape, highlighting the need for a nuanced approach to financial inclusion. By recognizing the complexities of banking preferences and behaviors, stakeholders can work towards creating a more inclusive and effective financial system.

In conclusion, the shift from mobile banking to traditional services in Kenya underscores the importance of understanding the diverse needs of different demographics. As the country continues to evolve its financial landscape, embracing digital technology and regulatory reforms will be key to expanding financial inclusion and promoting economic growth.