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Equity Bank unveils its MVNO strategy
VituVingiSana
#401 Posted : Monday, September 22, 2014 10:05:32 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,056
Location: Nairobi
KNM wrote:
One of the best things about Mpesa was the pay bill option. Convenience personified.

If Equity can sign deals with big players ie, Kenya Power, Nairobi Water, Multichoice etc, then that would be a big sell. Not only that, these corporate entities would presumably have to open accounts with Equity.

Ching!
Equity already finances (Nairobi) City Hall so expect those services to be on Equitel's MVNO menu. Add Muranga [Equity's birthplace or at least where JM is from]. And there are many counties that love Equity and will allow the services to be paid via Equitel.

KPLC, DSTV, Zuku are businesses (who need not have Equity accounts) who will accept anyone as an agent as long as it is price-efficient. No-one wants to open payment offices that cost them a lot to maintain.

Add every Equity financed SME to accept Lipa Na Ekwetee!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
jwatesh
#402 Posted : Tuesday, September 23, 2014 12:54:28 AM
Rank: Member


Joined: 8/19/2014
Posts: 125
VituVingiSana wrote:
jwatesh wrote:
Kausha wrote:
I bet air patel are rubbing their hands with glee at the prospect of someone else throwing shit loads of money into an expensive fight that is the fight against safaricon. This will be protracted and i will take a break from the EB stock and watch from the safaricom corner.

notice EB has had little success outside its core space in Kenya.


I just wish they would be more aggressive outside Kenya. Especially Tanzania and move into DRC & Nigeria. 50 million people in Tz. Get those cheap deposits
Tanzania is a tough place to do business for Kenyan firms. There are no 'cheap deposits. And those 'cheap' deposits need to be lent out. Who would borrow those cheap deposits? The huge portion of Tanzanians who think loans are grants!

Most micro-finance institutions in TZ loan to salaried people [who are hardly fired] so they use the salary check-off system. Micro-loans like those in KE are hard to collect on. Equity needs to concentrate on cross-border business e.g. KE-TZ or TZ-RW trade before they grow their retail business.

Other banks e.g. NIC and I&M [these deal with high net-worth individuals and mid-sized corporates] are also having it tough in TZ coz of cultural differences on how loans are processed, secured, drawn on or repaid. Notice how the rush into TZ by Kenyan firms [including banks] has slowed down.


You have a solid point right there
MaichBlack
#403 Posted : Tuesday, September 23, 2014 6:39:58 AM
Rank: Elder


Joined: 7/22/2009
Posts: 7,451
Gordon Gekko wrote:
mlennyma wrote:
Equity gets the official go ahead from cak and cbk

Did safcom expect a different outcome? Who's the chairman of CAK, who's the Governor of CBK, who's the chair of parliament energy committee, who are the largest shareholders of ekuete? But at least we get to tame the green monster, maybe slay it?

Geez!!! Kenyans and their damn goggles! Even in an intellectual discourse one has to go tribal?? Poor Kenya!!

Simple fact: There are no known/reported/recorded issues with the thin sim and therefore as of now, there is no basis to block Equity from using them!! Even my [almost] five year old daughter can understand that!!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
Mainat
#404 Posted : Tuesday, September 23, 2014 7:07:28 AM
Rank: Veteran


Joined: 11/21/2006
Posts: 1,590
FACT - Mpesa is a monopoly in money transfer
FACT - Safaricom is a monopoly in telecoms
FACT - the proof of mukimo is in the eating

The rest is BS.
Let the battle commence. And may Equity win
Sehemu ndio nyumba
The optimist
#405 Posted : Tuesday, September 23, 2014 7:34:59 AM
Rank: Member


Joined: 6/14/2010
Posts: 520
Location: Nairobi
jwatesh
#406 Posted : Tuesday, September 23, 2014 7:44:03 AM
Rank: Member


Joined: 8/19/2014
Posts: 125
And the rally will continue
quicksand
#407 Posted : Tuesday, September 23, 2014 7:59:19 AM
Rank: Veteran


Joined: 7/5/2010
Posts: 2,061
Location: Nairobi
Pitched debate battle ...I like this. One of the rare sober threads around here,..I wonder if strategists from both companies are following this?
MaichBlack
#408 Posted : Tuesday, September 23, 2014 8:12:48 AM
Rank: Elder


Joined: 7/22/2009
Posts: 7,451
The optimist wrote:
And the Green elephant is not relenting.
Safaricom sounds warning to users of Equity’s thin SIM.

'Wanjiku' will sue Safcom for withdrawing it's legal responsibility without a valid reason! Safcom will have to PROVE the thin sim comes with additional security issues which wouldn't be there if it were not used. The burden of proof is on Safcom!!

Equity will also take on Safcom on the basis of anti-competition actions. Again, Safcom will have to PROVE the security threats exist!

Safcom needs evidence. So far, there is none! Suspicions, fear etc. will not cut it!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
Sasha
#409 Posted : Tuesday, September 23, 2014 8:13:26 AM
Rank: Veteran


Joined: 9/5/2007
Posts: 627
CAK and CBK have given Safaricom a lifeline. 1 year in the technology industry is huge; you only have 3 months of first mover advantage in this industry especially where mobile technology is concerned. If Safaricom are bright, and surely they are, they will come up with something to counter this. They are already talking to KCB and Post Bank to explore a response to Equity.

Looking at it from the banking industry, the other banks are running scared more than Safaricom. There are about 200k mobile banking users in the entire industry. Assuming a conversion rate of as low as 10%, Equity will already have more than 4x mobile banking/payments users than the entire market. The cost savings, revenues from transaction fees, increased deposits will give Equity such a significant edge that the other banks just cannot compete with. No wonder the other banks are busy headhunting at Mpesa.

Equity's Achilles Heel will be their technology model. They have handled technology very badly since they started, what with CBS being down, ATMs not working, EAZZY247 being crap etc. You would hope that they have learnt a lesson and will not make silly blunders. Ask KCB and CfCStanbic how much they have lost because of silly technology mistakes.
quicksand
#410 Posted : Tuesday, September 23, 2014 8:26:03 AM
Rank: Veteran


Joined: 7/5/2010
Posts: 2,061
Location: Nairobi
MaichBlack wrote:
The optimist wrote:
And the Green elephant is not relenting.
Safaricom sounds warning to users of Equity’s thin SIM.

'Wanjiku' will sue Safcom for withdrawing it's legal responsibility without a valid reason! Safcom will have to PROVE the thin sim comes with additional security issues which wouldn't be there if it were not used. The burden of proof is on Safcom!!

Equity will also take on Safcom on the basis of anti-competition actions. Again, Safcom will have to PROVE the security threats exist!

Safcom needs evidence. So far, there is none! Suspicions, fear etc. will not cut it!

Legally, how is it different from what many establishments do when they post a sign saying 'Management is not liable for theft or damage of property/cars left here .....'? Following your line of argument, they would have to prove first that thieves or criminals who can do harm are present in the vicinity (or in the establishment).
There is no evidential burden required to issue a caveat (even when it appears as if the objective is to scare people). I stand corrected. Any lawyers in the house?
MaichBlack
#411 Posted : Tuesday, September 23, 2014 8:43:24 AM
Rank: Elder


Joined: 7/22/2009
Posts: 7,451
quicksand wrote:
MaichBlack wrote:
The optimist wrote:
And the Green elephant is not relenting.
Safaricom sounds warning to users of Equity’s thin SIM.

'Wanjiku' will sue Safcom for withdrawing it's legal responsibility without a valid reason! Safcom will have to PROVE the thin sim comes with additional security issues which wouldn't be there if it were not used. The burden of proof is on Safcom!!

Equity will also take on Safcom on the basis of anti-competition actions. Again, Safcom will have to PROVE the security threats exist!

Safcom needs evidence. So far, there is none! Suspicions, fear etc. will not cut it!

Legally, how is it different from what many establishments do when they post a sign saying 'Management is not liable for theft or damage of property/cars left here .....'? Following your line of argument, they would have to prove first that thieves or criminals who can do harm are present in the vicinity (or in the establishment).
There is no evidential burden required to issue a caveat (even when it appears as if the objective is to scare people). I stand corrected. Any lawyers in the house?

These companies are not mandated to take responsibility for such loss. On the other hand, financial institutions are REQUIRED to take responsibility of client's money. For one, CBK REQUIRES financial institution - including Safcom/Mpesa to insure client's money to the tune of 100,000/=. They can't unilaterally seek to selectively ignore that directive without inviting CBK's wrath!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
MaichBlack
#412 Posted : Tuesday, September 23, 2014 9:14:05 AM
Rank: Elder


Joined: 7/22/2009
Posts: 7,451
@quicksand - You go to your house and post notices informing your kids you bear no responsibility to them and see how legally binding that will be.

You can NEVER come up with a [legally binding] agreement/law/conditions at a lower level that contravene laws at a higher level. For example, if you and I signed a sale agreement for one of your kids, it could not be legally binding!

Safcom has to operate within Kenyan laws and CBK's and CAK's rules!! Hiyo ingine ni porojo!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
mlennyma
#413 Posted : Tuesday, September 23, 2014 9:20:49 AM
Rank: Elder


Joined: 7/21/2010
Posts: 6,175
Location: nairobi
Who is driving kenyas economy?who are the most c.e.os in the country and serious business guys?answer yourself and parting shot equity has all the goodwill to execute this plan,in Africa we only compete with southafrica which has already embraced thin sim so we are behind technology go equity go
"Don't let the fear of losing be greater than the excitement of winning."
MaichBlack
#414 Posted : Tuesday, September 23, 2014 9:21:39 AM
Rank: Elder


Joined: 7/22/2009
Posts: 7,451
Anyone foresee's business/economic sabotage in the next one year as I do? A situation whereby seasoned hackers are covertly hired to break into the system to 'prove' the thin sim comes with security threats??

This might movie - like with time. Hackers are hired, break into the system and one entity has their 'evidence'. The other entity hire hot shot investigators which proves entity one was culpable in the staged hacking...
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
mlennyma
#415 Posted : Tuesday, September 23, 2014 9:28:40 AM
Rank: Elder


Joined: 7/21/2010
Posts: 6,175
Location: nairobi
If internet has not been stopped because of hackers there is no way hacking will lead to technology stop we will deal with the criminal just like other fraud cases which are very many even in mpesa
"Don't let the fear of losing be greater than the excitement of winning."
iris
#416 Posted : Tuesday, September 23, 2014 9:31:22 AM
Rank: Member


Joined: 9/11/2014
Posts: 228
Location: Nairobi
If a hacker (hired or not) could break into the system, wouldn't that concern you?
kollabo
#417 Posted : Tuesday, September 23, 2014 9:40:27 AM
Rank: Veteran


Joined: 2/3/2012
Posts: 1,317
Sasha wrote:
CAK and CBK have given Safaricom a lifeline. 1 year in the technology industry is huge; you only have 3 months of first mover advantage in this industry especially where mobile technology is concerned. If Safaricom are bright, and surely they are, they will come up with something to counter this. They are already talking to KCB and Post Bank to explore a response to Equity.

Looking at it from the banking industry, the other banks are running scared more than Safaricom. There are about 200k mobile banking users in the entire industry. Assuming a conversion rate of as low as 10%, Equity will already have more than 4x mobile banking/payments users than the entire market. The cost savings, revenues from transaction fees, increased deposits will give Equity such a significant edge that the other banks just cannot compete with. No wonder the other banks are busy headhunting at Mpesa.

Equity's Achilles Heel will be their technology model. They have handled technology very badly since they started, what with CBS being down, ATMs not working, EAZZY247 being crap etc. You would hope that they have learnt a lesson and will not make silly blunders. Ask KCB and CfCStanbic how much they have lost because of silly technology mistakes.


Word on the ground is Safcom have contacted their mother Vodafone to come up with their own thin SIM.
mlennyma
#418 Posted : Tuesday, September 23, 2014 9:41:51 AM
Rank: Elder


Joined: 7/21/2010
Posts: 6,175
Location: nairobi
BREAKING NEWS:Equity share overtakes kcb share in a fierce trading session
"Don't let the fear of losing be greater than the excitement of winning."
mlennyma
#419 Posted : Tuesday, September 23, 2014 9:44:57 AM
Rank: Elder


Joined: 7/21/2010
Posts: 6,175
Location: nairobi
A dominant player doesn't need a thin sim,its an underdog who needs a thin sim to ride on the dominant sim to pull the dominance down
"Don't let the fear of losing be greater than the excitement of winning."
MaichBlack
#420 Posted : Tuesday, September 23, 2014 9:48:50 AM
Rank: Elder


Joined: 7/22/2009
Posts: 7,451
iris wrote:
If a hacker (hired or not) could break into the system, wouldn't that concern you?

Most systems can be hacked. FBI, Microsoft etc have all been hacked. One of the reasons why hackers don't hack into some systems is because the time, effort and resources involved are far much greater than what they are after.

Some of the computing resources required to actualize some hacks are too expensive to even bother. Now, if you have a wealthy backer with a far greater agenda willing to pick up the bill, that changes the whole ball game!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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