Quite interesting. I wonder if they'll integrate it with MPESA...

Ati wakati wa kuhama and the figure from cck is only 400 pple and their care centers are empty.

I'd rather see investment in technologies that are ramping UP, not DOWN. If they were to say that they have a clean way to transfer money from the diaspora, GREAT! They'd be back on top! But paper checks are dwindling worldwide because of the very technologies that they helped develop- MPesa, etc. Credit and Debit cards are also killing the paper check. That, and to be honest, such an application is really simply comprised of scanners (MICR if you like, but optical is fine), an internet connection, an email program, and a third party TIF reader. Not high tech by any stretch of the imagination. I understand the need to get checks truncated and digitized into cash letters for faster processing and greater float, but, like voice being killed by voice-over IP, how long will it last?

Jasonhill,

any advancement that increases the velocity of money can only be good for the economy. You may think that the solution is archaic, but wait until they introduce the capability to check whether checks are good (account has money) at the pos.It will make all the difference!

Please don't take this the wrong way.... just want to know.. stock prices are talking...

I'm sorry, maybe I'm confused, but how does one "win a tender to supply internet connectivity, if they were already doing so?"

And if the optical and magnetic scanning hardware, infrastructure, and X9.37 TIFF software are all still responsibility of the banks, exactly what is SafCom's value-add in this equasion? The branches would have already had some sort of network connectivity to central offices, and fiber and Wimax is available. In addition, transmissions could happen during low-bandwidth periods such as all night and all morning during closed hours. So I'm just trying to understand exactly what this press release is about... and resultantly, will the stock rise because of it! And is it sustainable.

I mean, lets be real, it's all just black and white tiff files and text micr data... you could transmit that over a cell phone... Ive had branches connect on 56k analog PHONE line modems push thousands of checks up every day. So I just dont see how this new internet connection can drop the processing time from 10 to 3 days... better check processing procedures by the banks, yes, and better clearinghouse practices by CBK, but the connection...

In addition, I have nothing against SafCom, but can they not be questioned? Challenging SafCam is what has gotten Kenya 1 bob calling... so is it not good to question the status quo? And how is innovation hullabaloo? Is 4G hullaballo just because one has 3G? Oh pardom me for questioning the great, mighty, powerful SafCom...

And Western Union??? Please tell me you are joking! Using them is like erasing your stock gains for the year with those fees!

But I knew I was going to get flamed for questioning SafCom. It's okay. Bob knows it's all love.

Best,

Hill

which attractive services?

@jasonhill
I'm sorry, maybe I'm confused, but how does one "win a tender to supply internet connectivity, if they were already doing so?"

Oh come on.. You don't know that Safcom is an ISP and a network links provider.. U know bambanet? former Onecom?

And if the optical and magnetic scanning hardware, infrastructure, and X9.37 TIFF software are all still responsibility of the banks, exactly what is SafCom's value-add in this equasion?
Who said anything about Safcom bringing any innovation to the deal? They've simply won the deal to be the ISP or Network Links provider. Value-adds and all that is the business of KBA which they think they've brought in by speeding up cheque clearance to one day. Whether or not this is true is between KBA and Kenyans.

In addition, transmissions could happen during low-bandwidth periods such as all night and all morning during closed hours. Is that what you call innovation.. waiting to have cheques transmitted and cleared during the night. I suppose M-PESA transfers should also take place at night. And even if I concede your point, which I don't, these night time transfers take place over a network (which is what Safaricom will provide)
change in share price? Of course, Safcom has just won an extra income stream for the next five years. Revenues and profits dictate company value NOT vague notions of value add in areas that are not your core business.
Western Union
Sawa, its expensive... but what does that have to do with Safcom's stock price. If there are people using the service, Safcom is earning. Stop mixing your customer-centric (I should say communist) emotions with your evaluation of the stock.

I repeat, if this business of using MICRs and Scanners is outdated.. that is the business of the banks, KBA and Central Bank. If they come up with your "super solution", I'm sure Safcom will be there to offer the network infrastructure... and with it more dividends and capital gains for me (got in at 3.50 btw)

I know you've come to expect miracles from Safcom, but surely sometimes they have to sit back and simply do their core business. Something as simple as ensuring people can call or surf or connect to the KBA solution.

Aaaah.. Finally we're on the same page.. I don't know what Safaricom expects to earn from this deal - I have no idea what size images the cheques will create nor do I know how many cheques banks exchange on a daily basis..

Like you, I suspect that it won't be much. But then again you're the only one who has insinuated that the deal was meant to "secure the company's future". Maybe you're right, the earnings are not enough to justify the change in price.

However, from a business point of view, any win of any deal even if its one additional rural customer is "cause celebre". Ask Airtel. They've been celebrating every single port to their network. After all this is "additional" income. It doesn't take away anything from their current business.

Whatever the deal is worth, this is straight bottom line income. They will be leveraging on already existing infrastructure. Even if they take a monthly charge of ksh 1,000 per branch per month, this is serious cash. Count the number of BRANCHES in the country, not the circa 50 banks and maybe UK's lost bag may not be big enough to carry the dough.