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Equity Bank unveils its MVNO strategy
Rank: Veteran Joined: 7/3/2007 Posts: 1,634
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muganda wrote:Truth is Safaricom
..earns 191/= from MPesa per customer monthly
....only left with 76/= after paying 40% to agents
I think you got the numbers reversed. If Safaricom pays 40% agency commission it is left with 114 shillings, not 76. Not too shabby IMHO, especially when you consider they have become a marketing monster. Marketing is where I believe this potential war with Equity will be decided, not commissions. After all I expect the CCK to eventually enforce the multi agency service model, which will eliminate Safaricoms first mover advantage and reduce pressure on commissions. Then again I have learned, to my cost, never to mis-understimate one, James Mwangi. As someone else said, the customer will be the real beneficiary. Let the games begin! "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: Member Joined: 6/17/2010 Posts: 572
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Museveni wrote:CASHFLOW202 wrote:Museveni wrote:CASHFLOW202 wrote:Those charges are the real deal. It's a good blow to pesa after they have been taking a lions share of commissions in every transaction one makes.
However they should be well decisive to add voice and sms services in their Sim cards. That would break the proverbial camel's back. Margins in voice are slim & cost of maintaining clients hooked on the service are not very enticing ( Saf's post paid tariff withdrawal from market ). Also, this is a fat opportunity to the enterprising to come up with/invent/import/customize devices (think digital wallets) that will maximise the potential for these mobile transactions without necessarily being phones, meaning their cost will be lower since the stringent measures applied for phone compliance do not apply. The infrastructure is ready. It's not like they have to set it up. And their Customers service center is there also to handle queries. I don't see why they would deny their customers the convenience of voice, sms, and data especially with most people needing to call their help desk for guidance as they Gain ground on educating the mass on this new way of doing great banking. Apps on that Sim or on smart devices will need data connectivity and unless you live in nakuru where there is free Wi-Fi  The main reason would be who needs another line ? How many numbers do your friends have to keep track of on you ? We all know how hard it has been for any new entrant to get subscribers off their initial service providers(Saf & Kencell [Airtel]). Data services are always available even without activation of the voice service. You do not necessarily need a WiFi availability. It provides a much smooth experience for simple yet effective service delivery without additional costs for a service which others have perfected. Remember voice brings about call quality issues which form a huge complaint from clients. Data only cards/devices have less issues. Case in point. 3G modems are devices that came about as a result in the need for internet access without necessarily requiring a voice plan. ( very few complaints about the modem devices, most complaints are about data speeds & charges from the different providers ). Calls to the CCC or help desks can be made using your regular lines as you effect commands/change settings on the separate device. u they will issue a flexible thin sim card that will be placed on top of your existing sim and will easily fit back into your phone, with this you enjoy normal network services from your provider and also get the MVNO 'One headache for famous medieval holy people was that someone might murder you to acquire your body parts for the relics trade'
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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Cheers @Wakanyugi, you said it. I've updated original post/estimate to come up a pretax estimate of 35/= monthly per customer, or 630m pre-tax annually, for the first couple of years. Wakanyugi wrote:muganda wrote:Truth is Safaricom
..earns 191/= from MPesa per customer monthly
....only left with 76/= after paying 40% to agents
I think you got the numbers reversed. If Safaricom pays 40% agency commission it is left with 114 shillings, not 76. Not too shabby IMHO, especially when you consider they have become a marketing monster. Marketing is where I believe this potential war with Equity will be decided, not commissions. After all I expect the CCK to eventually enforce the multi agency service model, which will eliminate Safaricoms first mover advantage and reduce pressure on commissions. Then again I have learned, to my cost, never to mis-understimate one, James Mwangi. As someone else said, the customer will be the real beneficiary. Let the games begin!
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Rank: Member Joined: 1/14/2014 Posts: 178
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vky wrote:Museveni wrote:CASHFLOW202 wrote:Museveni wrote:CASHFLOW202 wrote:Those charges are the real deal. It's a good blow to pesa after they have been taking a lions share of commissions in every transaction one makes.
However they should be well decisive to add voice and sms services in their Sim cards. That would break the proverbial camel's back. Margins in voice are slim & cost of maintaining clients hooked on the service are not very enticing ( Saf's post paid tariff withdrawal from market ). Also, this is a fat opportunity to the enterprising to come up with/invent/import/customize devices (think digital wallets) that will maximise the potential for these mobile transactions without necessarily being phones, meaning their cost will be lower since the stringent measures applied for phone compliance do not apply. The infrastructure is ready. It's not like they have to set it up. And their Customers service center is there also to handle queries. I don't see why they would deny their customers the convenience of voice, sms, and data especially with most people needing to call their help desk for guidance as they Gain ground on educating the mass on this new way of doing great banking. Apps on that Sim or on smart devices will need data connectivity and unless you live in nakuru where there is free Wi-Fi The main reason would be who needs another line ? How many numbers do your friends have to keep track of on you ? We all know how hard it has been for any new entrant to get subscribers off their initial service providers(Saf & Kencell [Airtel]). Data services are always available even without activation of the voice service. You do not necessarily need a WiFi availability. It provides a much smooth experience for simple yet effective service delivery without additional costs for a service which others have perfected. Remember voice brings about call quality issues which form a huge complaint from clients. Data only cards/devices have less issues. Case in point. 3G modems are devices that came about as a result in the need for internet access without necessarily requiring a voice plan. ( very few complaints about the modem devices, most complaints are about data speeds & charges from the different providers ). Calls to the CCC or help desks can be made using your regular lines as you effect commands/change settings on the separate device. they will issue a flexible thin sim card that will be placed on top of your existing sim and will easily fit back into your phone, with this you enjoy normal network services from your provider and also get the MVNO Ebu say that again? " sim-within-a-sim"? Does existing hardware (i.e. phones, tablets, etc) have capability to read the two sims concurrently from one slot or how will it work? 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: Member Joined: 8/16/2012 Posts: 660
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Goldilocks Reloaded wrote:vky wrote:Museveni wrote:CASHFLOW202 wrote:Museveni wrote:CASHFLOW202 wrote:Those charges are the real deal. It's a good blow to pesa after they have been taking a lions share of commissions in every transaction one makes.
However they should be well decisive to add voice and sms services in their Sim cards. That would break the proverbial camel's back. Margins in voice are slim & cost of maintaining clients hooked on the service are not very enticing ( Saf's post paid tariff withdrawal from market ). Also, this is a fat opportunity to the enterprising to come up with/invent/import/customize devices (think digital wallets) that will maximise the potential for these mobile transactions without necessarily being phones, meaning their cost will be lower since the stringent measures applied for phone compliance do not apply. The infrastructure is ready. It's not like they have to set it up. And their Customers service center is there also to handle queries. I don't see why they would deny their customers the convenience of voice, sms, and data especially with most people needing to call their help desk for guidance as they Gain ground on educating the mass on this new way of doing great banking. Apps on that Sim or on smart devices will need data connectivity and unless you live in nakuru where there is free Wi-Fi The main reason would be who needs another line ? How many numbers do your friends have to keep track of on you ? We all know how hard it has been for any new entrant to get subscribers off their initial service providers(Saf & Kencell [Airtel]). Data services are always available even without activation of the voice service. You do not necessarily need a WiFi availability. It provides a much smooth experience for simple yet effective service delivery without additional costs for a service which others have perfected. Remember voice brings about call quality issues which form a huge complaint from clients. Data only cards/devices have less issues. Case in point. 3G modems are devices that came about as a result in the need for internet access without necessarily requiring a voice plan. ( very few complaints about the modem devices, most complaints are about data speeds & charges from the different providers ). Calls to the CCC or help desks can be made using your regular lines as you effect commands/change settings on the separate device. they will issue a flexible thin sim card that will be placed on top of your existing sim and will easily fit back into your phone, with this you enjoy normal network services from your provider and also get the MVNO Ebu say that again? " sim-within-a-sim"? Does existing hardware (i.e. phones, tablets, etc) have capability to read the two sims concurrently from one slot or how will it work? Not possible. Getting subscribers to move to a different line will present a huge challenge. ION they may decide to make use of subscriber migration platform for clients to retain same number otherwise, even with free phones, watu wataweka their old lines na hio new sim-card ibaki tu unused. Live and learn; and don’t forget, nothing ventured, nothing gained.
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Rank: Veteran Joined: 7/5/2010 Posts: 2,061 Location: Nairobi
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Wakanyugi wrote:muganda wrote:Truth is Safaricom
..earns 191/= from MPesa per customer monthly
....only left with 76/= after paying 40% to agents
I think you got the numbers reversed. If Safaricom pays 40% agency commission it is left with 114 shillings, not 76. Not too shabby IMHO, especially when you consider they have become a marketing monster. Marketing is where I believe this potential war with Equity will be decided, not commissions. After all I expect the CCK to eventually enforce the multi agency service model, which will eliminate Safaricoms first mover advantage and reduce pressure on commissions. Then again I have learned, to my cost, never to mis-understimate one, James Mwangi. As someone else said, the customer will be the real beneficiary. Let the games begin! This sphere of operations is too new (Kenya is writing the mobile money textbook as we speak!) and too complex (legally and technically) to be left to a daft and bungling organization like the CCK to manage. Why? Because CCK will forget its role is that of impartial referee and it will want to be a power player, a prefect, and hence will propose stupid unworkable frameworks that will harm all, Equity, Safaricom, Airtel and any new entrants. There is plenty of precedence, the recent conditions on the divvying up of Yu being a perfect example. Mobile Number Portability. Managememt of spectrum. LTE licensing is in limbo. Look, you cannot withdraw your Barclays balance from a KCB counter and the multi-agency model as currently proposed by CCK is idiotic. They grow fat by leeching on taxpayer money, do you think coherent, robust governance and regulation can come from these people? A multi agency model needs to be grown independently by the players, not shoved down the throat by the regulator.
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Rank: Member Joined: 6/17/2010 Posts: 572
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Museveni wrote:Goldilocks Reloaded wrote:vky wrote:Museveni wrote:CASHFLOW202 wrote:Museveni wrote:CASHFLOW202 wrote:Those charges are the real deal. It's a good blow to pesa after they have been taking a lions share of commissions in every transaction one makes.
However they should be well decisive to add voice and sms services in their Sim cards. That would break the proverbial camel's back. Margins in voice are slim & cost of maintaining clients hooked on the service are not very enticing ( Saf's post paid tariff withdrawal from market ). Also, this is a fat opportunity to the enterprising to come up with/invent/import/customize devices (think digital wallets) that will maximise the potential for these mobile transactions without necessarily being phones, meaning their cost will be lower since the stringent measures applied for phone compliance do not apply. The infrastructure is ready. It's not like they have to set it up. And their Customers service center is there also to handle queries. I don't see why they would deny their customers the convenience of voice, sms, and data especially with most people needing to call their help desk for guidance as they Gain ground on educating the mass on this new way of doing great banking. Apps on that Sim or on smart devices will need data connectivity and unless you live in nakuru where there is free Wi-Fi The main reason would be who needs another line ? How many numbers do your friends have to keep track of on you ? We all know how hard it has been for any new entrant to get subscribers off their initial service providers(Saf & Kencell [Airtel]). Data services are always available even without activation of the voice service. You do not necessarily need a WiFi availability. It provides a much smooth experience for simple yet effective service delivery without additional costs for a service which others have perfected. Remember voice brings about call quality issues which form a huge complaint from clients. Data only cards/devices have less issues. Case in point. 3G modems are devices that came about as a result in the need for internet access without necessarily requiring a voice plan. ( very few complaints about the modem devices, most complaints are about data speeds & charges from the different providers ). Calls to the CCC or help desks can be made using your regular lines as you effect commands/change settings on the separate device. they will issue a flexible thin sim card that will be placed on top of your existing sim and will easily fit back into your phone, with this you enjoy normal network services from your provider and also get the MVNO Ebu say that again? " sim-within-a-sim"? Does existing hardware (i.e. phones, tablets, etc) have capability to read the two sims concurrently from one slot or how will it work? Not possible. Getting subscribers to move to a different line will present a huge challenge. ION they may decide to make use of subscriber migration platform for clients to retain same number otherwise, even with free phones, watu wataweka their old lines na hio new sim-card ibaki tu unused. very possible, remember those chaps on luthuli ave who used to cut your safcom and zain sim then fix the two together in one phone, got that info from their call centre and also saw a photo of the thing on their twitter account 'One headache for famous medieval holy people was that someone might murder you to acquire your body parts for the relics trade'
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Rank: Member Joined: 8/16/2012 Posts: 660
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vky wrote:Museveni wrote:Goldilocks Reloaded wrote:vky wrote:Museveni wrote:CASHFLOW202 wrote:Museveni wrote:CASHFLOW202 wrote:Those charges are the real deal. It's a good blow to pesa after they have been taking a lions share of commissions in every transaction one makes.
However they should be well decisive to add voice and sms services in their Sim cards. That would break the proverbial camel's back. Margins in voice are slim & cost of maintaining clients hooked on the service are not very enticing ( Saf's post paid tariff withdrawal from market ). Also, this is a fat opportunity to the enterprising to come up with/invent/import/customize devices (think digital wallets) that will maximise the potential for these mobile transactions without necessarily being phones, meaning their cost will be lower since the stringent measures applied for phone compliance do not apply. The infrastructure is ready. It's not like they have to set it up. And their Customers service center is there also to handle queries. I don't see why they would deny their customers the convenience of voice, sms, and data especially with most people needing to call their help desk for guidance as they Gain ground on educating the mass on this new way of doing great banking. Apps on that Sim or on smart devices will need data connectivity and unless you live in nakuru where there is free Wi-Fi The main reason would be who needs another line ? How many numbers do your friends have to keep track of on you ? We all know how hard it has been for any new entrant to get subscribers off their initial service providers(Saf & Kencell [Airtel]). Data services are always available even without activation of the voice service. You do not necessarily need a WiFi availability. It provides a much smooth experience for simple yet effective service delivery without additional costs for a service which others have perfected. Remember voice brings about call quality issues which form a huge complaint from clients. Data only cards/devices have less issues. Case in point. 3G modems are devices that came about as a result in the need for internet access without necessarily requiring a voice plan. ( very few complaints about the modem devices, most complaints are about data speeds & charges from the different providers ). Calls to the CCC or help desks can be made using your regular lines as you effect commands/change settings on the separate device. they will issue a flexible thin sim card that will be placed on top of your existing sim and will easily fit back into your phone, with this you enjoy normal network services from your provider and also get the MVNO Ebu say that again? " sim-within-a-sim"? Does existing hardware (i.e. phones, tablets, etc) have capability to read the two sims concurrently from one slot or how will it work? Not possible. Getting subscribers to move to a different line will present a huge challenge. ION they may decide to make use of subscriber migration platform for clients to retain same number otherwise, even with free phones, watu wataweka their old lines na hio new sim-card ibaki tu unused. very possible, remember those chaps on luthuli ave who used to cut your safcom and zain sim then fix the two together in one phone, got that info from their call centre and also saw a photo of the thing on their twitter account Maybe Dual sim adapters. Not sim within a sim. These come with their share of challenges. Not all phones have extra room to accommodate the space needed. Sometimes a different case/cover needed. Wapi link to twitter ? Live and learn; and don’t forget, nothing ventured, nothing gained.
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Rank: Elder Joined: 12/2/2009 Posts: 2,458 Location: Nairobi
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holycow wrote:My pedestrian thinking, would KCB, COOP, NBK and other banks allow Equity "Mpesa" to withdraw money from their customers accounts the same way they have allowed Mpesa to link to their customer accounts? If Equity is targeting it's existing clients then it's ok. problem no.1 Brand. You have already highlighted the first issue Equity has to deal with. 2ndly and related to problem 1 above is marketing & ad firm. They should pray Safaricom does not sign-up all the top notch firms. The advertisement war here is going to be massive i presume. As much as Mpesa bank has become such a mammoth, that will start trampling on competitors as well as customers. i do not see Equity upstaging them with this product per se. May be their main goal is not Mpesa, but their usual competitor. Simba should start worrying or being innovative.
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Rank: User Joined: 1/20/2014 Posts: 3,528
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poundfoolish wrote:holycow wrote:My pedestrian thinking, would KCB, COOP, NBK and other banks allow Equity "Mpesa" to withdraw money from their customers accounts the same way they have allowed Mpesa to link to their customer accounts? If Equity is targeting it's existing clients then it's ok. problem no.1 Brand. You have already highlighted the first issue Equity has to deal with. 2ndly and related to problem 1 above is marketing & ad firm. They should pray Safaricom does not sign-up all the top notch firms. The advertisement war here is going to be massive i presume. As much as Mpesa bank has become such a mammoth, that will start trampling on competitors as well as customers. i do not see Equity upstaging them with this product per se. May be their main goal is not Mpesa, but their usual competitor.
Simba should start worrying or being innovative. I think that is one of the main reasons equity is in this thing. Remember when they went for the masses nobody wanted to touch. Somehow i believe Dr. Mwangi knows his game plan! Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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Rank: New-farer Joined: 12/27/2013 Posts: 87
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“Our previous attempts to introduce mobile banking through partners have failed mainly because of high cost of transaction. When you have telcos as middle men between you and the customers this pushes the costs up and that is why M-kesho failed,” said Mr Mwangi. is mr mwangi guessing they will ride on airtel net work for free while airtel boss say equity is another source of income? GOOD TO GREAT. KINGOTORE
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Rank: Member Joined: 5/14/2014 Posts: 288 Location: nairobi
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thou shall not under estimate Dr mwangi I find satisfaction in owning great business,not trading them
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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target1360 wrote:thou shall not under estimate Dr mwangi I await to see what Dr Mwangi has on his sleeve but if its about a price war, then he should not over estmate the peculiar Kenyan people. He just needs to prove that he has a better product than what is offered by the rest "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: Veteran Joined: 7/3/2007 Posts: 1,634
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quicksand wrote:Wakanyugi wrote:muganda wrote:Truth is Safaricom
..earns 191/= from MPesa per customer monthly
....only left with 76/= after paying 40% to agents
I think you got the numbers reversed. If Safaricom pays 40% agency commission it is left with 114 shillings, not 76. Not too shabby IMHO, especially when you consider they have become a marketing monster. Marketing is where I believe this potential war with Equity will be decided, not commissions. After all I expect the CCK to eventually enforce the multi agency service model, which will eliminate Safaricoms first mover advantage and reduce pressure on commissions. Then again I have learned, to my cost, never to mis-understimate one, James Mwangi. As someone else said, the customer will be the real beneficiary. Let the games begin! This sphere of operations is too new (Kenya is writing the mobile money textbook as we speak!) and too complex (legally and technically) to be left to a daft and bungling organization like the CCK to manage. Why? Because CCK will forget its role is that of impartial referee and it will want to be a power player, a prefect, and hence will propose stupid unworkable frameworks that will harm all, Equity, Safaricom, Airtel and any new entrants. There is plenty of precedence, the recent conditions on the divvying up of Yu being a perfect example. Mobile Number Portability. Managememt of spectrum. LTE licensing is in limbo. Look, you cannot withdraw your Barclays balance from a KCB counter and the multi-agency model as currently proposed by CCK is idiotic. They grow fat by leeching on taxpayer money, do you think coherent, robust governance and regulation can come from these people? A multi agency model needs to be grown independently by the players, not shoved down the throat by the regulator. Them are strong words @quicksand. But then I don't hold brief for CCK and although I am vaguely aware of the ineptness you have mentioned, I have not really followed the story of CCK's slide into mediocrity. But let us agree that a multi-agency service model, however it comes about, would be good for the industry; providing a massive boost to growth and forcing players to compete on service and value addition (I know, the same promise that number portability was supposed to deliver, but one can dream, no?). Let us also agree that neither of the players are saints. The strongest case for CCK's existence is that none of them will act for the common good, out of the 'goodness of their hearts,' especially when there is a negative bottom line impact. Someone has to wield the big stick. Finally I think there is a point we are missing, as far as Equity MAVUNO is concerned. Mwangis intention, I think, is to grow his core banking business, through expanded reach and new efficiencies, not to grab a share of Saricoms voice and data business. The temptation here is for the two giants to collude and simply carve up the market between them (forget Airtel). Did I hear someone yell, CCK!? "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: Veteran Joined: 2/3/2012 Posts: 1,317
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murchr wrote:kollabo wrote:innairobi wrote:Good for competition, choice, quality of service and pricing. But Equity better be keen on creating and growing their own space. If they are banking entirely on displacing Safaricom, I do not see that happening any time soon for numerous reasons not least of which is depth of pocket.
Free sim cards and low pricing alone will not lead to mass migration from Mpesa if we are to go by Kenyans peculiar habits. Would have been great though if Equity could find a way to deploy this strategy in the more virgin markets outside Kenya i.e. East Africa. I beg to differ. I think Equity has a captive market of 8m customers. If they can convince their customers to enter a seamless money network featuring Equity agents (over 10,000 countrywide), the Bank, and the mashinani supermarkets and kiosks that currently accept Equity visa cards, this could be a game changer. At a cheaper price BTW. My only concern is that Equity are klutzes when it come to dealing with technology issues. So you expect equity customers to chuck their simcards every other time they wish to send money so as to save how much? And who said Safcom wont lower their rates to match these? The biggest benefactor is the customer Why not? Transacting for Wanjiku is as essential as breathing. Wanjiku cant do without it. Safcom cannot and will not lower their rates. If they do, it will cut commissions to their agents. That will play nicely into the hands of Equity and will likely be the beginning of the end. Safcom is a telco purporting to offer financial services. (Not good for the customer) Equity is a financial services firm leveraging technology to offer better services. (Good for customer). Equity have a great opportunity here. It all depends on how they manage it.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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kollabo wrote:murchr wrote:kollabo wrote:innairobi wrote:Good for competition, choice, quality of service and pricing. But Equity better be keen on creating and growing their own space. If they are banking entirely on displacing Safaricom, I do not see that happening any time soon for numerous reasons not least of which is depth of pocket.
Free sim cards and low pricing alone will not lead to mass migration from Mpesa if we are to go by Kenyans peculiar habits. Would have been great though if Equity could find a way to deploy this strategy in the more virgin markets outside Kenya i.e. East Africa. I beg to differ. I think Equity has a captive market of 8m customers. If they can convince their customers to enter a seamless money network featuring Equity agents (over 10,000 countrywide), the Bank, and the mashinani supermarkets and kiosks that currently accept Equity visa cards, this could be a game changer. At a cheaper price BTW. My only concern is that Equity are klutzes when it come to dealing with technology issues. So you expect equity customers to chuck their simcards every other time they wish to send money so as to save how much? And who said Safcom wont lower their rates to match these? The biggest benefactor is the customer Why not? Transacting for Wanjiku is as essential as breathing. Wanjiku cant do without it. Safcom cannot and will not lower their rates. If they do, it will cut commissions to their agents. That will play nicely into the hands of Equity and will likely be the beginning of the end. Safcom is a telco purporting to offer financial services. (Not good for the customer) Equity is a financial services firm leveraging technology to offer better services. (Good for customer). Equity have a great opportunity here. It all depends on how they manage it. Thats the beginning of the end. Kenyans have more than one sim card but almost all transact on Safcom. Why? 1.Loyalty 2. convinience, I would be amazed to see someone chuck their simcard constantly so as to load up credit, or just to pay a bill. It will work fine for those with compatible phones that have a provision of 2 sim cards otherwise....it'll die down like Mkesho "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: 12/11/2006 Posts: 884
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murchr wrote:kollabo wrote:murchr wrote:kollabo wrote:innairobi wrote:Good for competition, choice, quality of service and pricing. But Equity better be keen on creating and growing their own space. If they are banking entirely on displacing Safaricom, I do not see that happening any time soon for numerous reasons not least of which is depth of pocket.
Free sim cards and low pricing alone will not lead to mass migration from Mpesa if we are to go by Kenyans peculiar habits. Would have been great though if Equity could find a way to deploy this strategy in the more virgin markets outside Kenya i.e. East Africa. I beg to differ. I think Equity has a captive market of 8m customers. If they can convince their customers to enter a seamless money network featuring Equity agents (over 10,000 countrywide), the Bank, and the mashinani supermarkets and kiosks that currently accept Equity visa cards, this could be a game changer. At a cheaper price BTW. My only concern is that Equity are klutzes when it come to dealing with technology issues. So you expect equity customers to chuck their simcards every other time they wish to send money so as to save how much? And who said Safcom wont lower their rates to match these? The biggest benefactor is the customer Why not? Transacting for Wanjiku is as essential as breathing. Wanjiku cant do without it. Safcom cannot and will not lower their rates. If they do, it will cut commissions to their agents. That will play nicely into the hands of Equity and will likely be the beginning of the end. Safcom is a telco purporting to offer financial services. (Not good for the customer) Equity is a financial services firm leveraging technology to offer better services. (Good for customer). Equity have a great opportunity here. It all depends on how they manage it. Thats the beginning of the end. Kenyans have more than one sim card but almost all transact on Safcom. Why? 1.Loyalty 2. convinience, I would be amazed to see someone chuck their simcard constantly so as to load up credit, or just to pay a bill. It will work fine for those with compatible phones that have a provision of 2 sim cards otherwise....it'll die down like Mkesho The ultra slim simcard answers all that www.businessdailyafrica....06/-/f6qtws/-/index.html“Invest in yourself. Your career is the engine of your wealth.”
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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ngapat wrote:murchr wrote:kollabo wrote:murchr wrote:kollabo wrote:innairobi wrote:Good for competition, choice, quality of service and pricing. But Equity better be keen on creating and growing their own space. If they are banking entirely on displacing Safaricom, I do not see that happening any time soon for numerous reasons not least of which is depth of pocket.
Free sim cards and low pricing alone will not lead to mass migration from Mpesa if we are to go by Kenyans peculiar habits. Would have been great though if Equity could find a way to deploy this strategy in the more virgin markets outside Kenya i.e. East Africa. I beg to differ. I think Equity has a captive market of 8m customers. If they can convince their customers to enter a seamless money network featuring Equity agents (over 10,000 countrywide), the Bank, and the mashinani supermarkets and kiosks that currently accept Equity visa cards, this could be a game changer. At a cheaper price BTW. My only concern is that Equity are klutzes when it come to dealing with technology issues. So you expect equity customers to chuck their simcards every other time they wish to send money so as to save how much? And who said Safcom wont lower their rates to match these? The biggest benefactor is the customer Why not? Transacting for Wanjiku is as essential as breathing. Wanjiku cant do without it. Safcom cannot and will not lower their rates. If they do, it will cut commissions to their agents. That will play nicely into the hands of Equity and will likely be the beginning of the end. Safcom is a telco purporting to offer financial services. (Not good for the customer) Equity is a financial services firm leveraging technology to offer better services. (Good for customer). Equity have a great opportunity here. It all depends on how they manage it. Thats the beginning of the end. Kenyans have more than one sim card but almost all transact on Safcom. Why? 1.Loyalty 2. convinience, I would be amazed to see someone chuck their simcard constantly so as to load up credit, or just to pay a bill. It will work fine for those with compatible phones that have a provision of 2 sim cards otherwise....it'll die down like Mkesho The ultra slim simcard answers all that www.businessdailyafrica....06/-/f6qtws/-/index.html Quote: If somebody calls you on your Equity line, you can pick it and if they call your other network, you do the same.............The special SIM card allows users to access financial services and make cheap international phone calls by diverting traffic from the parent network to the carry-on SIM.
So now they are getting into Telecoms? "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: New-farer Joined: 4/12/2014 Posts: 56
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@murchr....you did not read the whole story...you just selectively picked one para....
"Equity, which got a Mobile Virtual Network Operator (MVNO) licence in April, plans to issue consumers with the ultra-slim SIM cards that can sit on the back of normal SIM cards, saving users the trouble of migrating or carrying two phones.
“Users who want to stick with their current mobile lines and at the same time enjoy Equity’s banking solution will be able to do so with our slim card,” Equity Bank chief executive officer James Mwangi said in an interview.
“The SIM Skin gets married to the existing card and turns your phone into a dual SIM although it has only one slot. If somebody calls you on your Equity line, you can pick it and if they call your other network, you do the same.”
The slim SIM cards come in the form of a film that is 0.1 millimetres thick and can be layered over the active side of an ordinary SIM card without interfering with its reception or operation."
Is it time to accumulate Equity and underweight Safaricom??
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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INTERESTING! wrote:@murchr....you did not read the whole story...you just selectively picked one para....
"Equity, which got a Mobile Virtual Network Operator (MVNO) licence in April, plans to issue consumers with the ultra-slim SIM cards that can sit on the back of normal SIM cards, saving users the trouble of migrating or carrying two phones.
“Users who want to stick with their current mobile lines and at the same time enjoy Equity’s banking solution will be able to do so with our slim card,” Equity Bank chief executive officer James Mwangi said in an interview.
“The SIM Skin gets married to the existing card and turns your phone into a dual SIM although it has only one slot. If somebody calls you on your Equity line, you can pick it and if they call your other network, you do the same.”
The slim SIM cards come in the form of a film that is 0.1 millimetres thick and can be layered over the active side of an ordinary SIM card without interfering with its reception or operation."
Is it time to accumulate Equity and underweight Safaricom?? When i had 2 sim cards i could do the same...anyone would call me on their prefered choice of service, but my question is, Is Equity getting into telecoms? Another question, how many of those millions of customers would want to have their bank details on the phone???? Any numbers on how many Kenyans have taken up mobile banking? Well apart from the normal banking kidogo kidogo? Many keep off ATMs for the banking hall. "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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