Equity Bank Group CEO Dr. James Mwangi told investors and media that the bank has partnered with Airtel to roll out the Mobile Virtual Network Operator (MVNO) in July.
“Our future strategy focuses on leveraging technology, innovations to transform financial services. A convergence of technology and financial products is at the core of 21st banking,” Mwangi said.
Equity Group will be the first bank in the region to launch mobile money transfer services. The CEO stressed that virtual banking will promote financial inclusion and shared prosperity across the east African region.
“A shift from brick and mortar is informed by changing dynamics in the banking industry. A mobile platform will enable clients transact payments at their place of convenience,” Mwangi told investors.
Equity Bank will utilize Airtel’s infrastructure to roll out the mobile payment services.
The CEO clarified that the bank will not replicate mobile payment services run by telecommunication giants but intends to accelerate the transition to cashless payments.
“An estimated 96 percent of transactions in Kenya are done using cash and we intend to eliminate this practice in the next few years. We will provide our 9 million clients with a SIM card to enable them undertake electronic payments,” said Mwangi
The Mobile Virtual Network Operator will enable the public open an account on-line, transfer money and apply for loans using a mobile phone.
“This platform will boost savings and ease of transactions. It will scale up brand visibility and loyalty,” Mwangi said. He noted that mobile technology will promote financial literacy and entrepreneurship.The MVNO will be piloted in Kenya and its success will inform the roll out in other eastern African countries.
Mwangi also clarified that the mobile payment platform applies to all banks and mobile networks.
A convergence of mobile telephony and banking services has gained traction as customers focus on convenience and speed while transacting payments.
Airtel Kenya CEO Adil Youssefi, noted that mobile platforms have reduced the number of unbanked population in Kenya.
“In this era, customers are focusing on convergence in order to link their bank accounts to a mobile phone. The entry of Mobile Virtual Network Operators will stimulate and sustain overall market growth,” Youssefi said.
He added that mobile platforms will boost e-commerce and economic growth in Kenya.
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