How Startups Are Helping Kenyan Banks Go More Digital

Kenyan banks and insurance companies are increasingly partnering with technology startups to develop digital financial services, improve customer experiences and reach more people.

For years, banks and insurance companies have dominated Kenya’s financial sector. But as mobile banking, digital lending and financial technology continue to grow, established firms are changing how they do business.

Instead of building every new technology themselves, many are turning to startups for fresh ideas and solutions that can help them compete in an increasingly digital economy.

According to Business Daily Africa, the shift reflects a growing understanding that traditional financial institutions and technology startups can achieve more by working together than by competing alone.

A growing trend of partnerships

The partnerships take different forms. Banks and insurers can invest in startups, buy stakes in technology companies, work together to develop digital products or use outside companies to improve their services.

Several Kenyan financial institutions are already following this approach.

Equity Group, for example, has established Finserve to develop digital financial products and partner with financial technology companies. NCBA Group operates Loop, its digital banking platform, and has expanded mobile-based financial services through products such as M-Shwari.

KCB Group has also invested in digital innovation. In 2025, the bank acquired a 75 per cent stake in Riverbank Solutions, a technology company that provides payment systems, agency banking and business management software.

Meanwhile, insurance company Britam announced plans in July 2026 to invest up to Sh1.9 billion in financial technology and insurance technology startups through its BetaLab investment arm.

These examples show how established companies are moving beyond traditional banking and insurance to embrace new ways of delivering financial services. Source: Business Daily Africa⁠

Why do big financial companies need startups?

One major reason is speed.

Developing new technology internally can take time and money. Startups, on the other hand, are often smaller and more flexible, allowing them to test new ideas and respond quickly to customer needs.

They may develop tools that help people apply for loans using their phones, make digital payments, manage their money or purchase insurance without visiting an office.

Established financial institutions also bring important advantages to these partnerships. They already have customers, established reputations, financial resources and the licences needed to provide regulated services.

Combining these strengths allows banks and insurers to introduce new products while giving startups access to larger markets.

Competition is another important factor. Digital lenders have attracted customers who want quick and convenient access to credit. Rather than risk losing more customers to technology-driven competitors, traditional institutions are increasingly choosing to collaborate with them.

What does this mean for customers?

For ordinary Kenyans, the biggest potential benefit is convenience.

Customers could access more banking services through mobile phones, receive faster loan decisions, make payments more easily and purchase insurance without travelling long distances to a branch.

Digital products could also help banks and insurers reach people who have traditionally struggled to access financial services, including low-income households, small business owners and people living far from major towns.

Insurance companies could use technology partnerships to develop more affordable products and simplify the process of buying cover or submitting claims.

However, these benefits are not guaranteed. Customers will still need protection against fraud, misuse of personal information, unfair lending practices and hidden charges. Digital services must also remain accessible to people who have limited internet access or are less comfortable using smartphones.

The road ahead

Kenya’s financial sector is entering a period in which traditional institutions and technology startups are becoming increasingly connected.

The long-term success of these partnerships will depend on whether they deliver real improvements, rather than simply introducing new apps or investing in technology for appearances.

If banks, insurers and startups can combine their strengths effectively, customers could gain access to financial services that are faster, more affordable and easier to use.

Ultimately, the goal is not just to make banking digital. It is to make financial services work better for more people.