Nairobi Stock Exchange Broker Introduces Stock Trading on Mobile Devices
“Clients are increasingly getting busy and do not find time to physically come to the offices. The product, therefore, aims at offering that convenience of time as well as reduced costs,” Former NSE Chairman, James Wangunyu told journalists in Nairobi.
According to Mr Wangunyu, the SMS service is guaranteeing customers a confirmation text within an hour of placing any order. This new service brings Standard Investment Bank into a growing league of banks that provide their clients with value added services through mobile devices.
Mobile access to banking and investment services are a logical response to a region with the highest mobile phone penetration rates in the world. Kenya alone has 17.5 million cell phone users up sharply from about 200,000, 8 years ago.
While online trading hasn’t taken off in Kenya, it will be interesting to see if the arrival of broadband through three submarine cables connecting the Port of Mombasa to the United Arab Emirates will give rise to online trading in that and other African countries with a similar infrastructure. The government just last week, cut the 16% value added tax on mobile phones and allowed internet service providers to offset the cost of purchasing new fiber optic bandwidth for 20 years.
The Nairobi Stock Exchange (NSE) is the principal stock exchange in Kenya. It is Africa’s fourth largest stock exchange in terms of trading volumes, and fifth in terms of market capitalization as a percentage of GDP. Trading is done through the Electronic Trading System (ETS) which was commissioned in 2006.