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Equity Bank applies for license to launch mobile operator
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mwekez@ji
#1 Posted : Tuesday, February 25, 2014 10:35:22 AM
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Joined: 5/31/2011
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Equity Bank has applied to the Communications Commission of Kenya (CCK) for a license to launch a mobile operator. The application is currently at early stages and will need to go through several stages before approval according to the CCK. Equity Bank is also in talks with Essar Telecom Kenya, Kenya’s third largest mobile operator by subscribers, to potentially share infrastructure with the telco in the proposed new mobile operator. Equity Bank is seeking to launch an independent mobile operator to more effectively tap the rising use of mobile money in Kenya beyond peer to peer transactions to more of payments for goods and services, deposits and lending. We believe that Equity Bank would focus on the mobile money business in the new mobile operator, while a potential partner would handle the mobile communication business. (Source; Daily Nation, Kestrel Research)
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Sufficiently Philanga....thropic
#2 Posted : Tuesday, February 25, 2014 10:39:04 AM
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Good one!

#membervsmpesa
@SufficientlyP
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Cde Monomotapa
#3 Posted : Tuesday, February 25, 2014 11:28:03 AM
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A Strive Masiyiwa move... (Econet Wireless + Steward Bank, ZW) #Nuffsed #Nikufyam
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T-Bag
#4 Posted : Tuesday, February 25, 2014 1:29:09 PM
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Freedooom of choice is coming tomorrow! X2 Safcon had trapped many of us in M-Pesa,Mshwari etc.
I AM trust in GOD, I AM belief in THYSELF
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JeyT
#5 Posted : Tuesday, February 25, 2014 1:46:54 PM
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I don't think that's a wise decision, they could have just concentrated with banking.
Maji yakizidi unga toroka
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mwekez@ji
#6 Posted : Tuesday, February 25, 2014 5:43:08 PM
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Rich Today wrote:
Clever.

Ditto!
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Robinhood
#7 Posted : Tuesday, February 25, 2014 5:55:17 PM
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I think it was only a matter of time. Either a Telco (read Safaricom) would apply for a banking license, or a bank would want a Telco license so as to have a finger in each pie across the mobile financial service delivery chain. Some will cry real tears in the process.
Great men are not always wise, neither do the aged understand judgement...
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MaichBlack
#8 Posted : Tuesday, February 25, 2014 6:02:06 PM
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JeyT wrote:
I don't think that's a wise decision, they could have just concentrated with banking.

Never be afraid of growth!!!

This move makes a lot of sense. Talk about synergies!!! It's not like they are going into mineral water business!!

Of course it will need a lot of planning and proper management for it to work but it is genius!!!
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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a4architect.com
#9 Posted : Tuesday, February 25, 2014 6:07:34 PM
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its good for them to try. They might get lucky and invent a hybrid of mpesa , phone and bank. Maybe they will push mpesa like transactions to online , from telephony.
As Iron Sharpens Iron, So one Man Sharpens Another.
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chemos
#10 Posted : Tuesday, February 25, 2014 6:09:37 PM
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MaichBlack wrote:
JeyT wrote:
I don't think that's a wise decision, they could have just concentrated with banking.

Never be afraid of growth!!!

This move makes a lot of sense. Talk about synergies!!! It's not like they are going into mineral water business!!

Of course it will need a lot of planning and proper management for it to work but it is genius!!!



The guy on the hill who was being asked for his financial statements by Benshuta will not agree to his turf being erroded (Mshwari).
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Candlesticks
#11 Posted : Tuesday, February 25, 2014 7:04:18 PM
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This is a very good move by Equity bank. I however think the deal would have been better with Airtel or Orange not YU.

A deal with possibly OLX, Jumia and other small time E-commerce site would make it Viable. Create a super robust Mobile Application for smartphone user for easier payment and then embark on extensive consumer education they have hit homerun.

All in all brilliant idea.

Case Study: http://www.chinadaily.co...26/content_17199055.htm

Look for the Backstory online.
"'Nowadays people know the price of everything and the value of nothing.' - Oscar Wilde.
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Robinhood
#12 Posted : Tuesday, February 25, 2014 7:21:44 PM
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You see the current previous arrangement (such as Mkesho) means the bank does all the donkey work and Safaricom makes money simply by sitting hapo waiyaki way. This will change if they control the whole pipe and its cash
Great men are not always wise, neither do the aged understand judgement...
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obiero
#13 Posted : Tuesday, February 25, 2014 7:27:27 PM
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mwekez@ji wrote:
Rich Today wrote:
Clever.

Ditto!

i second that..

COOP ABP 15.85; IMH ABP 35.55; KQ ABP 5.75; MTN ABP 5.20
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MaichBlack
#14 Posted : Tuesday, February 25, 2014 7:41:46 PM
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chemos wrote:
MaichBlack wrote:
JeyT wrote:
I don't think that's a wise decision, they could have just concentrated with banking.

Never be afraid of growth!!!

This move makes a lot of sense. Talk about synergies!!! It's not like they are going into mineral water business!!

Of course it will need a lot of planning and proper management for it to work but it is genius!!!



The guy on the hill who was being asked for his financial statements by Benshuta will not agree to his turf being erroded (Mshwari).

He can't do much to block it!

New dispensation(Kenya) + Big Bank (Equity) + Info already in the public domain + Serious fellows behind Equity = Can't do much to block.

And in any case, how much of his (and CBA's) income comes from MShwari??? A drop in the ocean! Mshwari is a small percentage of CBA's income streams and CBA is a small percentage of his business empire! Nothing worth a fight for him.

If anyone should be shaking in their pants it is MPesa bank. It's high time they applied for a banking license!!!
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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MaichBlack
#15 Posted : Tuesday, February 25, 2014 7:44:22 PM
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Robinhood wrote:
You see the current previous arrangement (such as Mkesho) means the bank does all the donkey work and Safaricom makes money simply by sitting hapo waiyaki way. This will change if they control the whole pipe and its cash

Exactly!!! And the bank(s) bear all (most of) the risk! Safaricom just provides the platform and the customers. and they actually end up getting more customers because of the new product(s).
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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premio
#16 Posted : Tuesday, February 25, 2014 7:53:38 PM
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Not sure it will make sense cosidering the high cost of putting up the network infrastructure even if it means leasing space in existing bts Well i dont see anyone catching up with safaricom it their core bussiness and my take was it was easier for safaricom to venture into banking than for Equity to venture into the telcom arena
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the deal
#17 Posted : Tuesday, February 25, 2014 7:54:51 PM
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SCOM will beat the crap out of them...I think with the advance of mobile money... its easy for a telco to turn into a bank than a bank turn into a telco...Econet of Zim is doing that I think...this counter is a definite SELL.
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MaichBlack
#18 Posted : Tuesday, February 25, 2014 8:36:56 PM
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premio wrote:
... and my take was it was easier for safaricom to venture into banking than for Equity to venture into the telcom arena


the deal wrote:
... its easy for a telco to turn into a bank than a bank turn into a telco...


Very true.

But Equity cannot become a Telco and try to turn into a bank. Neither can it just sit there and mourn about how it is easier for a telco to turn into a bank than a bank to turn into a telco! You play the hand you were dealt.

When Equity took on the big banks, most people didn't give them a chance. People thought the big banks would "beat the crap out of them"! When they started lending to Wanjikus, everyone held their breadth and waited for their collapse due to the expected high rate of default...

Equity is not run by dimwits! We are talking about people who have walked the talk and dealt with all sorts of challenges to become the biggest bank by customer numbers - more than half of all bank accounts in Kenya!
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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PKoli
#19 Posted : Tuesday, February 25, 2014 10:03:40 PM
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MaichBlack wrote:
premio wrote:
... and my take was it was easier for safaricom to venture into banking than for Equity to venture into the telcom arena


the deal wrote:
... its easy for a telco to turn into a bank than a bank turn into a telco...


Very true.

But Equity cannot become a Telco and try to turn into a bank. Neither can it just sit there and mourn about how it is easier for a telco to turn into a bank than a bank to turn into a telco! You play the hand you were dealt.

When Equity took on the big banks, most people didn't give them a chance. People thought the big banks would "beat the crap out of them"! When they started lending to Wanjikus, everyone held their breadth and waited for their collapse due to the expected high rate of default...
@Maich..

I tend to agree with you. I think people are underestimating EB. Most people feel that Safcom is unbeatable in the telecos game. I think EB have done a comprehensive research and they will certainly make some impact.

Equity is not run by dimwits! We are talking about people who have walked the talk and dealt with all sorts of challenges to become the biggest bank by customer numbers - more than half of all bank accounts in Kenya!
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VituVingiSana
#20 Posted : Wednesday, February 26, 2014 12:50:14 AM
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Equity Mobile can buy minutes from either YU, Airtel or Orange which it will resell to its customers. It doesn't need to own significant amount of equipment. Very smart move since it can capture the transactional income from its 2mn+ customers.

Equity has 1000s of agents all over the country. Not as many as Safaricom but still a good start. Then Equity can rope in YU, Airtel & Orange agents as well.

Kenya, Uganda and Rwanda have agreed to review Roaming Charges and this allows Equity [present in KE, UG & RW] to offer cross-border calls and money transfers. When the time comes, the services can be extended to Tanzania and Burundi. Tigo offers cross-border money transfers between TZ & BU.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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