Comments on: Talking Mobile Banking in Kenya

By: collounsbury

collounsbury — Thu, 11 Jun 2009 17:43:54 +0000

Technology solutions in this area are about as oversold as the Internet was re transforming Africa about 10 years ago. The expectations are unrealistic, and based largely on what the educated think low income popuplations want to do (or should do) rather than what they are actually desirous of doing.

My experience in actual financing in Africa, even aimed at low income, is that much of the supposed value added services aren ot actually demanded, for a variety of reasons ranging from (well founded) risk aversion to lack of real convenience. And further, all those speakers seriously underestimated the Anonymity Value of Cash in these economies, a value that the non-idealised consumer seems to see as Very Large.

By: Joe

Joe — Tue, 09 Jun 2009 04:13:31 +0000

Dennis,

I beg to differ with some of your conclusions. Banks make their money by taking deposits at a low interest rate and lending out the money at a higher interest rate thus making a profit on the spread. A money transfer system such as Mpesa does not interfere with this and thus should not be a threat. Money lubricates the economy and being able to transfer efficiently to where it is a win win for everyone.
You are correct that other things need to grow in addition to the ICT sector. But ICT helps other areas of productivity. Embrace technology my friend. It can only help.

By: Dennis kombwa

Dennis kombwa — Mon, 08 Jun 2009 12:18:34 +0000

Why do u think a world power like Britain is taking caution when implementing this?Because they are keen in developing all sectors of economy.On the other hand, Kenyans think that if ICT grows then the economy will grow.Poor us, ICT is just an aspect among so many other aspects in life.

By: Dennis kombwa

Dennis kombwa — Mon, 08 Jun 2009 12:13:45 +0000

You all got it wrong on this one.Perhaps we should have a balanced economy where each sector is performing well, otherwise safcom will be the one to make all the profits and banks will start collapsing.Think it this way, will safcom be able to absorb all the retrenched workers from banking institutions .No wonder Kenya’s gap between the rich and power is so wide coz we don’t look at the bigger picture of things.

By: Joshua Wanyama

Joshua Wanyama — Fri, 05 Jun 2009 15:50:09 +0000

I can’t help but wonder what will happen with Western Union and Moneygram once more countries adopt mobile banking and it moves onto an international system. This is especially so in the developing nations which have a greater percentage of unbanked masses and the mobile phone is very necessary as an everyday tool.

I can even foresee a time where these companies will face problems similar to Kodak and Polaroid who assumed digital photography won’t supercede them since their products were superior when the technology came out. But alas as we all know, they were wiped out.

By: Jim Rosenberg - CGAP

Jim Rosenberg - CGAP — Wed, 27 May 2009 17:33:11 +0000

Hi everyone –
Mark is an avid blogger on these points and can be found at http://technology.cgap.org.

By: Mbugua Njihia

Mbugua Njihia — Wed, 27 May 2009 04:45:28 +0000

I agree with Mark Pickens thoughts.
“Consumers. The next round of innovation is beyond payments, but to use the wallet to store value. Who are the players that can provide this service on a safe basis? Paying for products directly would cut the cost for agents directly, and it would cut the cost of money within the system to the gov’t (2-3% of GDP). Poor people do have money, and they do save, but they put it at home in a jar, under the matress. What comes next innovation, is that the mobile needs to beat the matress”

By: Internet Banking

Internet Banking — Mon, 25 May 2009 15:46:05 +0000

Banks are an easy target when looking for someone to blame. Internet Banking

By: paul canning

paul canning — Mon, 25 May 2009 13:20:56 +0000

“This is what worries the banks, that we’re moving all this money around and they’re not getting any fees.”

I suppose this explains why we don’t have anything like Mpesa in the UK!