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the power of agency banking
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ngapat
#1 Posted : Thursday, April 14, 2011 3:43:37 PM
Rank: Veteran

Joined: 12/11/2006
Posts: 930
agency banking is one thing we can not take for granted. I believe it will bring huge profit to banks and is the reason I'm holding on to equity and kcb. infact we are talking of a revolution in banking here
“Invest in yourself. Your career is the engine of your wealth.”
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ProverB
#2 Posted : Thursday, April 14, 2011 3:46:26 PM
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Joined: 3/12/2010
Posts: 1,199
Location: Eastlander
especially the fact that they have borrowed heavily from the M-Pesa model.. likely to bridge gaps left open by mpesa..especially on security aspect.
..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
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Rahatupu
#3 Posted : Thursday, April 14, 2011 4:05:02 PM
Rank: Veteran

Joined: 12/4/2009
Posts: 1,982
Location: matano manne
Laughing out loudly Laughing out loudly Laughing out loudly Beba beba waharaka. KCB taking off nowApplause Applause
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Wendz
#4 Posted : Thursday, April 14, 2011 4:21:59 PM
Rank: Elder

Joined: 6/19/2008
Posts: 4,268
ProverB wrote:
especially the fact that they have borrowed heavily from the M-Pesa model.. likely to bridge gaps left open by mpesa..especially on security aspect.


you are right.. some mpesa agents are slowly pulling out and moving into agency banking especially the mkesho because it seems to be the one hitting the ground. And i think equity is deliberately targeting mpesa agents because of their wide network. i have seen several shops painted equity colours. So am wondering, if this is going to be for a year and then it is open to all banks, then can one agent transact for all banks or will they be locked to one particular bank?
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  | | Edit by user: Thursday, April 14, 2011 4:23 PM | Reason: Not specified
2012
#5 Posted : Thursday, April 14, 2011 5:04:43 PM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
ngapat wrote:
agency banking is one thing we can not take for granted. I believe it will bring huge profit to banks


I don't think it will be heaven all the way. I can foresee serious rise fraud and theft too...

BBI will solve it :)
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jasonhill
#6 Posted : Thursday, April 14, 2011 5:13:22 PM
Rank: Member

Joined: 1/22/2011
Posts: 322
Location: Chicago, IL, USA
ngapat wrote:
agency banking is one thing we can not take for granted. I believe it will bring huge profit to banks and is the reason I'm holding on to equity and kcb. infact we are talking of a revolution in banking here


I agree. Agency banking is a brilliant way to expand a bank's footprint and brand without having the usual heavy expense of organic or acquisition-level expansion. It has to be one of the best ideas I've seen in banking in years. That, and MPesa.

Best,

Hill
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jasonhill
#7 Posted : Thursday, April 14, 2011 5:17:05 PM
Rank: Member

Joined: 1/22/2011
Posts: 322
Location: Chicago, IL, USA
2012 wrote:
ngapat wrote:
agency banking is one thing we can not take for granted. I believe it will bring huge profit to banks


I don't think it will be heaven all the way. I can foresee serious rise fraud and theft too...


They'd better lock themselves in tight- steel cage, bullet proof glass... banking agents probably have the #1 reason to apply to the KP for a firearms permit... but I'm sure that one would know the obvious risk when taking on such an endeavor. I do wonder though, God forbid one is robbed, are the agents responsible for the missing money or does the bank eat that cost? That would change the risk dynamic of the situation.

As far as fraud, the best thing would be a live webcam and instant transaction reporting. That would require a decent internet connection, but maybe that's a requirement... maybe the connection could start when a transaction starts and end when it ends, in order to save bandwidth. I would think that at least a cheap CCTV camera and DVR recorder (15000 Ksh from China) would be in order.

Best,

Hill
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  | | Edit by user: Thursday, April 14, 2011 5:20 PM | Reason: Not specified
youcan'tstopusnow
#8 Posted : Thursday, April 14, 2011 5:41:54 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Rahatupu wrote:
Laughing out loudly Laughing out loudly Laughing out loudly Beba beba waharaka.

Laughing out loudlyLaughing out loudlyLaughing out loudly
GOD BLESS YOUR LIFE
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Cde Monomotapa
#9 Posted : Thursday, April 14, 2011 10:26:48 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
I am yet to understand this agency stuff and how is KCB's special? @Wendz..good question. The security concerns as well though Mpesa agents haven't got got that much. I need to understand it better. 1 thing I am 100% sure is MFIs are pissing in pants!
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  | | Edit by user: Thursday, April 14, 2011 11:22 PM | Reason: :-P
Jaina
#10 Posted : Friday, April 15, 2011 6:45:35 AM
Rank: Member

Joined: 5/13/2008
Posts: 558
Agency Banking is a sure way of banks to gain. However, in my view unless the dynamics change, its not sustainable.

Reasons:

--1: One of the requirements to get an agency licence is to be having an existing successful business. Why?. Because you cannot make money as an agent and as such you have to multitask with the other existing business that you have to survive.

--2: The agent has to pay rent (if not own premises), hire staff, make arrangements on security of the money in their posession. (A Big problem for an agent). The bank provides the platform as well as branding the outlet etc which makes it difficult for one agent to represent multiple banks.

However, there are some synergies that your existing business will gain as a result of the association.


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