I always have a problem with people who claim things wont work simply because they dont understand how it will work. I prefer those who asks "How will it work" because there is some hope that they will listen and actually be shown how it will work. For those still doubting "whether it can work", there is already 100 Equity guys using it, next month there will be about 8000 guys using it...You may want to talk to them.

Is Equity going into telcom? YES. That was the whole idea so that they dont rely on Safcom to do their financial services.

Safcom is a telcom giving financial service as a value add

Equity is a financial company and will give the Voice, SMS & Internet as a value add.

Will it work? NOTHING IS IMPOSSIBLE.

Will it be smooth? Not really. All new technologies always have teething problems, but those needs to be out-grown by the benefits.

It all depends on the kind of team Daktari has in place to drive the thing.

The Ceo himself said they are cheaper. 25bob as the maximum with the rest being 1%.

I wonder why you thought Equity won't be cheaper?

In a few months time many will live to remember that statement.

"Mr Mwangi said the cards have near field communication (NFC) capability that enables them to be swiped on the point of sale devices. That function is particularly critical for the bank, coming at a time when the public service vehicle (PSV) industry is going cashless."

Question:

I am not a pessimist and for disclosure, I am a member....however, my question is, is Equity Bank inventing things too quickly without letting other inventions mature?

1) Now the hot one is this telecoms + money transfer business

2) The matatu thing seems to have been left on the back-burner and matatus are supposed to be going electronic on July 1. Who is a journalist here who can ask JM how this is going? I think this is a story worth pursuing....

3) Their main banking business

Could Equity Bank be taking on too much risk?

After paying Airtel for the network use and then the agents, wonder what Equity will have left. The margins won't be as big as Safaricom's. Mpesa Bank has the advantage that it owns the network.
I hope CCK/CAK will be vigilant, Safcom once played dirty such that calls from other networks were always dropped.
Sample this from 2010

http://www.itnewsafrica.com/201...an-mobile-war-escalates/

THE mobile war in Kenya between the two main mobile telephony providers, Zain Kenya and Safaricom, has further escalated with Zain accusing its competitor of employing dirty tactics.
Just a day after Zain lowered its calling rate to Sh. 3 across the network making it the lowest amongst the other three mobile telephony providers, Safaricom has now allegedly jammed traffic by blocking all calls from Zain to Safaricom.


There's a thread talking about M-Shwari affecting CBA Q1 2014 results.I hope Equity learns from that.

http://wazua.co.ke/forum.aspx?g=posts&t=29098

[1] Communication is also possible between a NFC device and an unpowered NFC
chip , called a "tag". [2]

Perhaps.....you still caught my post even after I deleted it
They are experimental / very small scale .its still a very nascent tech...That wont stop people arguing that the good doctor is the one who will mature this tech with a single masterstroke...

And watch this interview

https://www.youtube.com/watch?v=KA49NOOj1tY

James Mwangi says Money Transfer [M-Pesa] is just one aspect of the service. The full suite of banking transactions including sale of insurance will be offered. And at a minimal cost to customers. An additional benefit will be more customers for Equity.

- Buy insurance
- Buy/Sell shares
- Transfer money (M-Pesa)
- Pay bills
- Pay for goods (like Lipa Na M-Pesa)
- Banking transactions (online banking)
- Make loans (M-Shwari)

This Mwangi is too bright.I wonder what became of Martin Oduor Otieno and Adan Mohammed??/

And one of the major reasons why Equity went into the MVNO business... Not for the fees off Many Transfers but the cheap deposits and 'Mobile Loans' which attract upto 24% in interest.

http://www.businessdaily...6/-/yxd9xnz/-/index.html