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Meet M-Shwari from Safaricom!!!!
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wakigogoini
#21 Posted : Tuesday, November 27, 2012 8:42:51 AM
Rank: New-farer

Joined: 10/10/2012
Posts: 12
bkismat wrote:
Shylocks are going to be hit hard especially as this product as I see will probably mostly be lending amounts of 10,000 and below. Borrowing 100,000 at such rates may be suicidial.
Shylocks remain with your ID ATM and may come and take away your property to enforce repayment. How will Safaricom enforce repayment? By reporting to the CRB?


This product is not for the clientel that frequents shylocks. This on my opinion is for serious business people who are stuck very temporarily and need to sort out a matter urgently before they recover within the month. A good cash flow is required here to make financial sense. those who use shylocks have no good financial sense and will never qualify in the first place for these advances considering they cannot even raise the savings. They consume anything in their wake, never save and live beyond their means.
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McReggae
#22 Posted : Tuesday, November 27, 2012 8:59:37 AM
Rank: Elder

Joined: 6/17/2008
Posts: 23,365
Location: Nairobi
wakigogoini wrote:
bkismat wrote:
Shylocks are going to be hit hard especially as this product as I see will probably mostly be lending amounts of 10,000 and below. Borrowing 100,000 at such rates may be suicidial.
Shylocks remain with your ID ATM and may come and take away your property to enforce repayment. How will Safaricom enforce repayment? By reporting to the CRB?


This product is not for the clientel that frequents shylocks. This on my opinion is for serious business people who are stuck very temporarily and need to sort out a matter urgently before they recover within the month. A good cash flow is required here to make financial sense. those who use shylocks have no good financial sense and will never qualify in the first place for these advances considering they cannot even raise the savings. They consume anything in their wake, never save and live beyond their means.


Very true, those who frequent shylocks will never have their accounts elegible for loans!!!!
..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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jerry
#23 Posted : Tuesday, November 27, 2012 9:34:09 AM
Rank: Elder

Joined: 9/29/2006
Posts: 2,570
dunkang wrote:
some change this thread to ' meet safaricom's Shylock business'

But seriously, who will borrow 100,000/- at 7p.c per month. Afadhali uchukue salary advance at equity to repay after 3 month at 25p.c p.a.

convenience and ease of getting the cash matters most and not the rate.
The opposite of courage is not cowardice, it's conformity.
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InnovateGuy
#24 Posted : Tuesday, November 27, 2012 10:04:26 AM
Rank: Veteran

Joined: 11/15/2012
Posts: 1,110
Olu wrote:
hisah wrote:
mwekez@ji wrote:
Interest rate on loans; 90% p.a.!!! (7.5% flat p.m.)
Interest rate on deposits; 5% p.a. (Maximum!!!)

Sucker!!!!!

I thought the article states this is a micro-lending product for micro-savers thus the repayment period of a month only.

Those small loans of say 2000/- across say 5 million savers on mpesa equals 10B advanced. Workout the interest & the mpesa withdrawal fees. CBA & Mpesa bank are in the monies. Now add the frequency of re-lending in those 30 days... That's a big candy stick. Microfinancers are up against a huge fight!




Meet Chege..Chege buys fresh produce at Marikiti market. Chege needs to buy goods to take to his small shop in Buruburu. Chege sees some more prduce he can buy in addition to his planned expenditure and can make more after re sell. Chege needs only 1000 bob. Chege now has an option of getting the money "pap" from mshwari and repay in the evening at the rate of 7.5% meaning he will pay 1075 back to mshwari, having made 2000 from selling his produce. Take home = 925/=.
This is the target market. the small scale people


My guess is that this is the target market (both in terms of saving and borrowing).

Currently, this segment is not served well by either banks, microfinaces and shylocks.

If this thing works, then Safaricom could be in the league of the big boys (the likes of Apple) in terms of churning out innovative products. The R & D department must be working overtime.

From the days of several tariffs (to suit different segments), using per second billing instead of per minute billing, flashback, free calls, Bonga points, M-pesa and now M-shwari! Damn! This is what the Kenyan market loves!
Live Full Die Empty - Les Brown.
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Caveman
#25 Posted : Tuesday, November 27, 2012 10:35:25 AM
Rank: Member

Joined: 4/15/2009
Posts: 371
So people are very interested in loans ........what about caltivating a saving culture. No charges to deposit, no charges to withdraw. You can deposit/withdraw anytime and as many times as you want.
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bkismat
#26 Posted : Tuesday, November 27, 2012 11:01:51 AM
Rank: Elder

Joined: 10/23/2009
Posts: 2,375
No matter what catchy sounding name people want to give this M-Shwari thing it is basically a shylocking set up.IF and only IF they get a water tight way of getting back their money then its going to be a gold mine otherwise it may turn into a big mistake.
It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt...
-Mark Twain
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  | | Edit by user: Tuesday, November 27, 2012 11:05 AM | Reason: Not specified
kollabo
#27 Posted : Tuesday, November 27, 2012 11:13:33 AM
Rank: Veteran

Joined: 2/3/2012
Posts: 1,317
Nice idea, I think it will fly
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mfadhili
#28 Posted : Tuesday, November 27, 2012 11:16:03 AM
Rank: New-farer

Joined: 3/29/2011
Posts: 14
McReggae wrote:
wakigogoini wrote:
bkismat wrote:
Shylocks are going to be hit hard especially as this product as I see will probably mostly be lending amounts of 10,000 and below. Borrowing 100,000 at such rates may be suicidial.
Shylocks remain with your ID ATM and may come and take away your property to enforce repayment. How will Safaricom enforce repayment? By reporting to the CRB?


This product is not for the clientel that frequents shylocks. This on my opinion is for serious business people who are stuck very temporarily and need to sort out a matter urgently before they recover within the month. A good cash flow is required here to make financial sense. those who use shylocks have no good financial sense and will never qualify in the first place for these advances considering they cannot even raise the savings. They consume anything in their wake, never save and live beyond their means.


Very true, those who frequent shylocks will never have their accounts elegible for loans!!!!



not necessarily .me thinks the details will be on how they will determine the credit worthiness of the borrower. account dressing over MPesa will be as easy as on bank accounts and probably the one thing that they will look at is the frequency of transactions and amounts. As easy as it sounds i dont think many a kenyans will qualify. Thy will angle towards lending againts cash balances.
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dunkang
#29 Posted : Tuesday, November 27, 2012 11:39:48 AM
Rank: Elder

Joined: 6/2/2011
Posts: 4,824
Location: -1.2107, 36.8831
http://www.vodafone.com/...ases/2012/m-shwari.html

Safaricom Launches M-Shwari -Offering Interest and Loans - On M-Pesa
27 November 2012

From today, M-Pesa customers in Kenya will have access to interest bearing saving
accounts and have the ability to take out small loans through a new service, called M-Shwari.

This is the next step in the M-Pesa story of
increasing further access to a wider range of financial services and is the result of a new strategic cooperation between Vodafone, Safaricom and the Commercial Bank of Africa (CBA).
Receive with simplicity everything that happens to you.” ― Rashi

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dunkang
#30 Posted : Tuesday, November 27, 2012 11:58:41 AM
Rank: Elder

Joined: 6/2/2011
Posts: 4,824
Location: -1.2107, 36.8831
i have just read an article on pesatalk.com and its just a summary of this thread. @lady admin, they have not acknowledged wazua or any wazua. How do you deal with that?

http://pesatalk.com/2012...k-account-from-safaricom
Receive with simplicity everything that happens to you.” ― Rashi

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