With over Kshs 13 Billion (US$98 million) advanced through the mobile phone-based loan product M-Shwari, the Commercial Bank of Africa (CBA) has announced plans to launch the service to the rest of East Africa region by the end of the year.

Speaking at a media briefing, CBA Group chief executive Isaac Awuondo said, "We are partnering with another telecom company to try and replicate the success of M-Shwari."

Awuondo did not however disclose which telco company CBA will be partnering with, considering they already have operations in Uganda and Tanzania.

Since launching the service back in 2012, in partnership with Safaricom, CBA has seen the service grow into a huge success. Over 10 million mobile phone accounts were opened, with transactions hitting an average of 50,000 in loans advanced to customers on a daily basis.

M-Shwari customers have transacted more than Kshs 156 Billion since its inception, shattering many myths associated with banking and innovation.

Many banks have taken calculated risks when it came to adopting mobile-based transactions, particularly in the advancement of loans to its customers.

Analysts believe that M-Shwari's success could have been the reason behind Kenya Commercial Bank's decision to launch a similar product dubbed KCB M-Pesa, also in partnership with Safaricom.