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Equity Bank unveils its MVNO strategy
Rank: New-farer Joined: 12/27/2013 Posts: 87
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“Our previous attempts to introduce mobile banking through partners have failed mainly because of high cost of transaction. When you have telcos as middle men between you and the customers this pushes the costs up and that is why M-kesho failed,” said Mr Mwangi. is mr mwangi guessing they will ride on airtel net work for free while airtel boss say equity is another source of income? GOOD TO GREAT. KINGOTORE
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Rank: Member Joined: 5/14/2014 Posts: 289 Location: nairobi
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thou shall not under estimate Dr mwangi I find satisfaction in owning great business,not trading them
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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target1360 wrote:thou shall not under estimate Dr mwangi I await to see what Dr Mwangi has on his sleeve but if its about a price war, then he should not over estmate the peculiar Kenyan people. He just needs to prove that he has a better product than what is offered by the rest "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Veteran Joined: 7/3/2007 Posts: 1,635
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quicksand wrote:Wakanyugi wrote:muganda wrote:Truth is Safaricom
..earns 191/= from MPesa per customer monthly
....only left with 76/= after paying 40% to agents
I think you got the numbers reversed. If Safaricom pays 40% agency commission it is left with 114 shillings, not 76. Not too shabby IMHO, especially when you consider they have become a marketing monster. Marketing is where I believe this potential war with Equity will be decided, not commissions. After all I expect the CCK to eventually enforce the multi agency service model, which will eliminate Safaricoms first mover advantage and reduce pressure on commissions. Then again I have learned, to my cost, never to mis-understimate one, James Mwangi. As someone else said, the customer will be the real beneficiary. Let the games begin! This sphere of operations is too new (Kenya is writing the mobile money textbook as we speak!) and too complex (legally and technically) to be left to a daft and bungling organization like the CCK to manage. Why? Because CCK will forget its role is that of impartial referee and it will want to be a power player, a prefect, and hence will propose stupid unworkable frameworks that will harm all, Equity, Safaricom, Airtel and any new entrants. There is plenty of precedence, the recent conditions on the divvying up of Yu being a perfect example. Mobile Number Portability. Managememt of spectrum. LTE licensing is in limbo. Look, you cannot withdraw your Barclays balance from a KCB counter and the multi-agency model as currently proposed by CCK is idiotic. They grow fat by leeching on taxpayer money, do you think coherent, robust governance and regulation can come from these people? A multi agency model needs to be grown independently by the players, not shoved down the throat by the regulator. Them are strong words @quicksand. But then I don't hold brief for CCK and although I am vaguely aware of the ineptness you have mentioned, I have not really followed the story of CCK's slide into mediocrity. But let us agree that a multi-agency service model, however it comes about, would be good for the industry; providing a massive boost to growth and forcing players to compete on service and value addition (I know, the same promise that number portability was supposed to deliver, but one can dream, no?). Let us also agree that neither of the players are saints. The strongest case for CCK's existence is that none of them will act for the common good, out of the 'goodness of their hearts,' especially when there is a negative bottom line impact. Someone has to wield the big stick. Finally I think there is a point we are missing, as far as Equity MAVUNO is concerned. Mwangis intention, I think, is to grow his core banking business, through expanded reach and new efficiencies, not to grab a share of Saricoms voice and data business. The temptation here is for the two giants to collude and simply carve up the market between them (forget Airtel). Did I hear someone yell, CCK!? "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: Veteran Joined: 2/3/2012 Posts: 1,317
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murchr wrote:kollabo wrote:innairobi wrote:Good for competition, choice, quality of service and pricing. But Equity better be keen on creating and growing their own space. If they are banking entirely on displacing Safaricom, I do not see that happening any time soon for numerous reasons not least of which is depth of pocket.
Free sim cards and low pricing alone will not lead to mass migration from Mpesa if we are to go by Kenyans peculiar habits. Would have been great though if Equity could find a way to deploy this strategy in the more virgin markets outside Kenya i.e. East Africa. I beg to differ. I think Equity has a captive market of 8m customers. If they can convince their customers to enter a seamless money network featuring Equity agents (over 10,000 countrywide), the Bank, and the mashinani supermarkets and kiosks that currently accept Equity visa cards, this could be a game changer. At a cheaper price BTW. My only concern is that Equity are klutzes when it come to dealing with technology issues. So you expect equity customers to chuck their simcards every other time they wish to send money so as to save how much? And who said Safcom wont lower their rates to match these? The biggest benefactor is the customer Why not? Transacting for Wanjiku is as essential as breathing. Wanjiku cant do without it. Safcom cannot and will not lower their rates. If they do, it will cut commissions to their agents. That will play nicely into the hands of Equity and will likely be the beginning of the end. Safcom is a telco purporting to offer financial services. (Not good for the customer) Equity is a financial services firm leveraging technology to offer better services. (Good for customer). Equity have a great opportunity here. It all depends on how they manage it.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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kollabo wrote:murchr wrote:kollabo wrote:innairobi wrote:Good for competition, choice, quality of service and pricing. But Equity better be keen on creating and growing their own space. If they are banking entirely on displacing Safaricom, I do not see that happening any time soon for numerous reasons not least of which is depth of pocket.
Free sim cards and low pricing alone will not lead to mass migration from Mpesa if we are to go by Kenyans peculiar habits. Would have been great though if Equity could find a way to deploy this strategy in the more virgin markets outside Kenya i.e. East Africa. I beg to differ. I think Equity has a captive market of 8m customers. If they can convince their customers to enter a seamless money network featuring Equity agents (over 10,000 countrywide), the Bank, and the mashinani supermarkets and kiosks that currently accept Equity visa cards, this could be a game changer. At a cheaper price BTW. My only concern is that Equity are klutzes when it come to dealing with technology issues. So you expect equity customers to chuck their simcards every other time they wish to send money so as to save how much? And who said Safcom wont lower their rates to match these? The biggest benefactor is the customer Why not? Transacting for Wanjiku is as essential as breathing. Wanjiku cant do without it. Safcom cannot and will not lower their rates. If they do, it will cut commissions to their agents. That will play nicely into the hands of Equity and will likely be the beginning of the end. Safcom is a telco purporting to offer financial services. (Not good for the customer) Equity is a financial services firm leveraging technology to offer better services. (Good for customer). Equity have a great opportunity here. It all depends on how they manage it. Thats the beginning of the end. Kenyans have more than one sim card but almost all transact on Safcom. Why? 1.Loyalty 2. convinience, I would be amazed to see someone chuck their simcard constantly so as to load up credit, or just to pay a bill. It will work fine for those with compatible phones that have a provision of 2 sim cards otherwise....it'll die down like Mkesho "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Veteran Joined: 12/11/2006 Posts: 930
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murchr wrote:kollabo wrote:murchr wrote:kollabo wrote:innairobi wrote:Good for competition, choice, quality of service and pricing. But Equity better be keen on creating and growing their own space. If they are banking entirely on displacing Safaricom, I do not see that happening any time soon for numerous reasons not least of which is depth of pocket.
Free sim cards and low pricing alone will not lead to mass migration from Mpesa if we are to go by Kenyans peculiar habits. Would have been great though if Equity could find a way to deploy this strategy in the more virgin markets outside Kenya i.e. East Africa. I beg to differ. I think Equity has a captive market of 8m customers. If they can convince their customers to enter a seamless money network featuring Equity agents (over 10,000 countrywide), the Bank, and the mashinani supermarkets and kiosks that currently accept Equity visa cards, this could be a game changer. At a cheaper price BTW. My only concern is that Equity are klutzes when it come to dealing with technology issues. So you expect equity customers to chuck their simcards every other time they wish to send money so as to save how much? And who said Safcom wont lower their rates to match these? The biggest benefactor is the customer Why not? Transacting for Wanjiku is as essential as breathing. Wanjiku cant do without it. Safcom cannot and will not lower their rates. If they do, it will cut commissions to their agents. That will play nicely into the hands of Equity and will likely be the beginning of the end. Safcom is a telco purporting to offer financial services. (Not good for the customer) Equity is a financial services firm leveraging technology to offer better services. (Good for customer). Equity have a great opportunity here. It all depends on how they manage it. Thats the beginning of the end. Kenyans have more than one sim card but almost all transact on Safcom. Why? 1.Loyalty 2. convinience, I would be amazed to see someone chuck their simcard constantly so as to load up credit, or just to pay a bill. It will work fine for those with compatible phones that have a provision of 2 sim cards otherwise....it'll die down like Mkesho The ultra slim simcard answers all that www.businessdailyafrica....06/-/f6qtws/-/index.html“Invest in yourself. Your career is the engine of your wealth.”
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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ngapat wrote:murchr wrote:kollabo wrote:murchr wrote:kollabo wrote:innairobi wrote:Good for competition, choice, quality of service and pricing. But Equity better be keen on creating and growing their own space. If they are banking entirely on displacing Safaricom, I do not see that happening any time soon for numerous reasons not least of which is depth of pocket.
Free sim cards and low pricing alone will not lead to mass migration from Mpesa if we are to go by Kenyans peculiar habits. Would have been great though if Equity could find a way to deploy this strategy in the more virgin markets outside Kenya i.e. East Africa. I beg to differ. I think Equity has a captive market of 8m customers. If they can convince their customers to enter a seamless money network featuring Equity agents (over 10,000 countrywide), the Bank, and the mashinani supermarkets and kiosks that currently accept Equity visa cards, this could be a game changer. At a cheaper price BTW. My only concern is that Equity are klutzes when it come to dealing with technology issues. So you expect equity customers to chuck their simcards every other time they wish to send money so as to save how much? And who said Safcom wont lower their rates to match these? The biggest benefactor is the customer Why not? Transacting for Wanjiku is as essential as breathing. Wanjiku cant do without it. Safcom cannot and will not lower their rates. If they do, it will cut commissions to their agents. That will play nicely into the hands of Equity and will likely be the beginning of the end. Safcom is a telco purporting to offer financial services. (Not good for the customer) Equity is a financial services firm leveraging technology to offer better services. (Good for customer). Equity have a great opportunity here. It all depends on how they manage it. Thats the beginning of the end. Kenyans have more than one sim card but almost all transact on Safcom. Why? 1.Loyalty 2. convinience, I would be amazed to see someone chuck their simcard constantly so as to load up credit, or just to pay a bill. It will work fine for those with compatible phones that have a provision of 2 sim cards otherwise....it'll die down like Mkesho The ultra slim simcard answers all that www.businessdailyafrica....06/-/f6qtws/-/index.html Quote: If somebody calls you on your Equity line, you can pick it and if they call your other network, you do the same.............The special SIM card allows users to access financial services and make cheap international phone calls by diverting traffic from the parent network to the carry-on SIM.
So now they are getting into Telecoms? "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: New-farer Joined: 4/12/2014 Posts: 56
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@murchr....you did not read the whole story...you just selectively picked one para....
"Equity, which got a Mobile Virtual Network Operator (MVNO) licence in April, plans to issue consumers with the ultra-slim SIM cards that can sit on the back of normal SIM cards, saving users the trouble of migrating or carrying two phones.
“Users who want to stick with their current mobile lines and at the same time enjoy Equity’s banking solution will be able to do so with our slim card,” Equity Bank chief executive officer James Mwangi said in an interview.
“The SIM Skin gets married to the existing card and turns your phone into a dual SIM although it has only one slot. If somebody calls you on your Equity line, you can pick it and if they call your other network, you do the same.”
The slim SIM cards come in the form of a film that is 0.1 millimetres thick and can be layered over the active side of an ordinary SIM card without interfering with its reception or operation."
Is it time to accumulate Equity and underweight Safaricom??
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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INTERESTING! wrote:@murchr....you did not read the whole story...you just selectively picked one para....
"Equity, which got a Mobile Virtual Network Operator (MVNO) licence in April, plans to issue consumers with the ultra-slim SIM cards that can sit on the back of normal SIM cards, saving users the trouble of migrating or carrying two phones.
“Users who want to stick with their current mobile lines and at the same time enjoy Equity’s banking solution will be able to do so with our slim card,” Equity Bank chief executive officer James Mwangi said in an interview.
“The SIM Skin gets married to the existing card and turns your phone into a dual SIM although it has only one slot. If somebody calls you on your Equity line, you can pick it and if they call your other network, you do the same.”
The slim SIM cards come in the form of a film that is 0.1 millimetres thick and can be layered over the active side of an ordinary SIM card without interfering with its reception or operation."
Is it time to accumulate Equity and underweight Safaricom?? When i had 2 sim cards i could do the same...anyone would call me on their prefered choice of service, but my question is, Is Equity getting into telecoms? Another question, how many of those millions of customers would want to have their bank details on the phone???? Any numbers on how many Kenyans have taken up mobile banking? Well apart from the normal banking kidogo kidogo? Many keep off ATMs for the banking hall. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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