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Equity Bank unveils its MVNO strategy
Rank: Member Joined: 1/14/2014 Posts: 178
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Safcom's recent attempt at reducing their Mpesa rates is a little too late and too obvious a reaction. Go for a business that any idiot can run – because sooner or later, any idiot is probably going to run it – Peter Lynch
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Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi
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And mr.market has approved equity carrying the day. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 12/11/2008 Posts: 2,306
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Wakanyugi wrote:murchr wrote:
Mpesa is cheaper numbers dont lie
You may want to ask for a refund from whoever taught you Maths. Here are the numbers: SAFARICOM - MPESA to MPESA CHARGESTo send Ksh 10 to 2500 Will cost you from Ksh 1 to 40 To send Ksh 2501 to 70,000 Will cost you from Ksh 55 to 110 PROPOSED EQUITY MVNO CHARGESTo send Ksh 10 to 2500 Will cost you from Ksh 0.1 to 25 (1%) To send Ksh 2501 to 70,000 Will cost you a flat fee of Ksh 25 To send any amount from Equity to Equity will cost ZERO  Great men are not always wise, neither do the aged understand judgement...
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Robinhood wrote:Wakanyugi wrote:murchr wrote:
Mpesa is cheaper numbers dont lie
You may want to ask for a refund from whoever taught you Maths. Here are the numbers: SAFARICOM - MPESA to MPESA CHARGESTo send Ksh 10 to 2500 Will cost you from Ksh 1 to 40 To send Ksh 2501 to 70,000 Will cost you from Ksh 55 to 110 PROPOSED EQUITY MVNO CHARGESTo send Ksh 10 to 2500 Will cost you from Ksh 0.1 to 25 (1%) To send Ksh 2501 to 70,000 Will cost you a flat fee of Ksh 25 To send any amount from Equity to Equity will cost ZERO  Ok you win, the thing is SAfcon is working with known and tested data, so they know where the majority of those transacting lie and how they do it. 10 - 49 = 1 50 - 100 = 3 101 - 500 = 11 501 - 1,000 = 15 1,001 - 1,500 = 25 The rest dont care because they probably dont use it that oftenly anyway. Even YU charged "0" on their calls but they packed up and left. Equity should also brace themselves for the fight IF this thing takes off. And am for it dont get me wrong afterall the users get to gain. "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: Member Joined: 2/20/2007 Posts: 767
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murchr wrote: Ok you win, the thing is SAfcon is working with known and tested data, so they know where the majority of those transacting lie and how they do it. 10 - 49 = 1 50 - 100 = 3 101 - 500 = 11 501 - 1,000 = 15 1,001 - 1,500 = 25 The rest dont care because they probably dont use it that oftenly anyway. Even YU charged "0" on their calls but they packed up and left. Equity should also brace themselves for the fight IF this thing takes off. And am for it dont get me wrong afterall the users get to gain. You have hit the nail on the head. With the data that Safaricom has, it can practically tailor charges to suit every individual who uses Mpesa. This big data when well utilised, and Safcom has the capacity to utilise it, will work to Safcoms advantage. One may argue that Equity may get access to Airtel network data but this will be miniscule compared to Safaricom and the data on Airtel network will probably not fit the Equity customer demographic. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Member Joined: 2/20/2007 Posts: 767
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ngapat wrote:Equity doesn't mind much about revenue from cash transfer service but rather attracting low cost deposits.
This is the reason they will allow cash transfer within their network at no cost. The catch here is to enable people even buy from mama mboga and pay through MVNO hence Equity will have a large pool of low cost deposits which they can loan and get high profit margins. You will not see the need to withdraw cash meaning the money will just be revolving within Equity bank and only changing owners.
Imagine paying at "iko Choo" with MVNO I think you are right. However, how will Equity make sure they dont lose out on transaction fees. They will have to collect them from somewhere, probably the vendor of whatever good or service one buys on the MVNO platform. Also, will they force all vendors to open Equity accounts. I think this is unlikely to happen. When it comes to access to mobile banking, KCB and M-shwari have preceded them and these two will not take encroachment on their tuff kindly also. So, the big question is, where will the expected billions in profits for Equity come from? Their 8 million customers may sign up but if they are not being charged to transact among themselves, how will Equity make money. If these customers transact with non equity persons, it will likely be with safaricom so both make money. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Veteran Joined: 12/11/2006 Posts: 930
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tom_boy wrote:ngapat wrote:Equity doesn't mind much about revenue from cash transfer service but rather attracting low cost deposits.
This is the reason they will allow cash transfer within their network at no cost. The catch here is to enable people even buy from mama mboga and pay through MVNO hence Equity will have a large pool of low cost deposits which they can loan and get high profit margins. You will not see the need to withdraw cash meaning the money will just be revolving within Equity bank and only changing owners.
Imagine paying at "iko Choo" with MVNO I think you are right. However, how will Equity make sure they dont lose out on transaction fees. They will have to collect them from somewhere, probably the vendor of whatever good or service one buys on the MVNO platform. Also, will they force all vendors to open Equity accounts. I think this is unlikely to happen. When it comes to access to mobile banking, KCB and M-shwari have preceded them and these two will not take encroachment on their tuff kindly also. So, the big question is, where will the expected billions in profits for Equity come from? Their 8 million customers may sign up but if they are not being charged to transact among themselves, how will Equity make money. If these customers transact with non equity persons, it will likely be with safaricom so both make money. Its true Quite a considerable amount of Equity bank profits comes from transactions fee and if they lose them, it would affect their bottom line. But Equity and other banks need to think of new revenue sources (expand their core lending business)since safaricom has invaded their turf and they are already losing the transaction fees anyway. I know of so many work colleagues who transfer all their salaries from their bank account into Mpesa and withdraws it bit by bit. Mpesa has become bank accounts for a sizable number of people. The amount of deposits held in mpesa accounts should be a cause of worry for banks. “Invest in yourself. Your career is the engine of your wealth.”
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Rank: Member Joined: 8/19/2014 Posts: 125
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Now Equity stock becoming a bit overpriced...PE ratio past 15 now. Locals selling foreigners buying
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Rank: Member Joined: 7/24/2010 Posts: 239 Location: nairobi
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Equity shareholding as at 31st Dec 2013.
herios 905,162,550 24.45%
britam 263,455,230 7.12%
employees 138,534,200 3.74%
JM 127,809,180 3.45% 4.88%(britam + employee)
You see how much jm makes for every sh 1.00 rise in share
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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innovator wrote:Equity shareholding as at 31st Dec 2013.
herios 905,162,550 24.45%
britam 263,455,230 7.12%
employees 138,534,200 3.74%
JM 127,809,180 3.45% 4.88%(britam + employee)
You see how much jm makes for every sh 1.00 rise in share on a good day, he can mint 700 million #Lanes
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