HFC commissioned MSC to conduct a digital readiness assessment and provide a proof of concept report for digital products and services. We were also expected to provide project management services for the pilot and launch HFC’s mobile application—HF Whizz.
MSC carried out a comprehensive digital readiness assessment to further HFC Bank’s insights into its offerings and uncover gaps and opportunities that digital financial services can address. We conducted market segmentation of HFC’s customer base and developed use-cases for low-income earners and the mass market. We provided strategic and tactical advice and recommendations on implementing the digital banking app and USSD used for account opening, savings, digital loans, and payments. We designed digital financial planning tools for personal financial management. Further, we formulated the broad contours and concepts of digital credit and savings for HFC and provided recommendations on the data sources for the digital algorithms.
HFC had acquired more than 200,000 new virtual accounts through the HF Whizz app by the end of 2020. HFC saw an annual growth of nearly 20% in transactions on digital platforms, reaching 1.24 million in 2020, representing more than 70% of all transactions at the bank. The project was a success. HFC mobilized more than KES 100 million (USD 1 million) from these new accounts and disbursed more than 15,000 loans with a cumulative loan book of KES 58 million (USD 0.5 million) within a year of the application’s launch.