Let start from the beginning how is M-Kesho going to work.? M-Kesho, unveiled by Equity Bank and Safaricom , will allow M-Pesa account holders to deposit and withdraw cash, and get loans. The Equity bank accounts transactions can now be operated entirely using mobile phones, through Mpesa system. Now that is something. You still don?t see how Safaricom is going to gain ?here? Look at it critically, Mpesa system will become the transit point, for majority of the? transactions taking place on Equity Accounts. As we know it now many people will not go to the bank but would rather do transactions using their mobile phones. The Mpesa agents are everywhere and at the moment stands at 17500 countrywide as compared to 80 branches of Equity.
Put a side the other services Mkesho is meant for? like loans,? insurance services and concentrate on the withdrawals, deposits and money transfer. If you go to Mpesa agent to deposit money, the agent receives the money and at that point you are charged nothing,? while to move money from Mpesa to Equity bank account , you are going to be charged the usual fee for sending cash from Mpesa system. First round Safaricom gains.? At that point? it becomes a deposit to Equity bank account ,there is no charges for? depositing cash.? At this point Equity does not get anything, unless there is some hidden charges i dont know of.
Equity gets its cash when Mpesa user withdraw from the bank to the Mpesa account
Most people will withdraw from the bank to mpesa with intention of sending or doing some sort of other transactions. The other scenario is when one is travelling and would like to keep money on Mpesa which is easier to access due to the wide spread of Mpesa agents in Kenya and the portability of the mobile phones. At the end when one does the transaction using Mpesa, again Safaricom gains by charging the cost of sending money. The following diagram should demonstrate how? Safaricom would benefit in the whole arrangement than the Equity bank.
the Death of ATMS .? Automated Teller Machines might have been around for sometime in the developed world but in Kenya it is a recent development and that is why it is sad to predict their death so soon. It is easy to see why ATMs will soon not be needed in Kenya. Actually you can? take direct parallel to the fixed telephone lines which have met their natural deaths in Africa . ATMs like Fixed telephone lines are fixed and in that can?t compete with mobile phones if it turns out ?that they are doing the same thing.? The cost of setting up the ATMs is high and that is why I think banks will be happy to abandon them for the cheap easily accessible MPesa agents. Yeah