Hello all,
Can someone explain to me this thorny issue on Mobile banking as I cannot seem to understand how the conventional banking sector can use mobile companies (who provide virtual money transfer) as tools for expansion,especially into the rural un-banked market? Casing Point being Safaricom where most urban and rural clients use their m-pesa money transfer service as a virtual bank for storage or transfer. At least this was my observation on my last year's kenya visit.

I am also told Zain released its own version called zap but this one more geared towards synergy with local conventional banks and in turn charging them fees.

Did Finance Minister Uhuru mention anything on mobile/virtual banking in this year's budget? Will the central bank act have to be revised to cater to this phenomenon of virtual banking? Assuming this was to happen,are folks expected to pay more for transfer fee and possiby online checking account?

Any idea as to who are pioneers behind m-pesa and tentatively how much will a such a mobile financial platform cost?

Your feedbacks appreciated.