CFC Stanbic is now a reality. Watch out BBK and Stanchart, these guys will soon be competing for corporate clients with a very portent offering of banking, insurance and investment products.
NIC are in the midst of their right issue-priced at very good Ksh70 with an additional bonus share to come once they are through with the rights issue. NIC are an innovative bank who potentially have a very bright future ahead but need a partner , not necessarily another bank but another financial institution, on whom they can leverage distribution.
DTK are also shortly starting their rights issue again at a discounted Ksh70. This is not as attractive as the NIC and DTB's future lies in two things happening. One, the finance minister doing away with these you stick- to- insurance and you-to-banking kind of divisions so that a bank can
offer insurance and investment products across the counter. And secondly, their being able to integrate successfully with Jubilee and Habib Bank.
In other news, Equity continue their expansion (how are they doing it?) with opening of branches in Kisumu and likely partnerships as far as Zimbabwe. And as a clincher, have now
been allowed to take a bite of HFCK heralding the much anticipated Equity-HFCK-Britak
financial institution (possibly buying into some of the smaller brokers?).
And to read any blog you'd think Kenyans ate and slept politics!
5 comments:
Before Kibaki came into power, how was Equity fairing? Is there any connection between his presidency and their success.
The reason for asking is I'm curious if they have a good banking model.
Equity have an excellent banking model-just ask Barclays which is now busy coping them.
I think its not hyperbole to say that Equity rescued many a Kenyan from putting their savings under the mattress.
If you recall, back in the mid to late 90s Barclays and StanChart sudenly said that you couldn't hold an account with them unless you had Ksh10/20k minimum in the account at anytime. At the time peeps weren't even being paid that much per month!
Equity came in with a zero balance account, you could borrow from them if you had regular salary or even milk/tea/coffee payments coming in. They could lend you for a year and even give you o/ds for a similar period. This was revolution in banking.
Today, they are still trailblazing e..g. the cashback facility they now have with Nakumatt.
To cushion the likely rise in non-perfoming loans, I believe they are the only (the first anyway) to provide for loan over a 3 month period rather than annual by other banks.
Equity seems to have "understood" the common Mkenya. How many other banks can you access your account online other than Equity? I like the fact that while in the US (and with time difference) I can call the Matatu driver and tell him that he has not made a deposit into the account - as agreed!
Equity growth has been remarkable. However one misconception in the market is that Equity's growth is what spurred Barclsys to copy them - Barclays is in the mddle of an international expansion program, which was timely for the Kenyan operation.
Banks, I agree and disagree. Yes Barclays are expanding internationally-they want to reduce their exposur to the UK. However, John Varley the CEO clearly stated in 2006 that Barclays move in Kenya was due and I quote "the potential in the lower income classes" http://www.thebanker.com/news/fullstory.php/aid/4708. One of their channels was to be through mobile banking units (copied straight from Equit and ABSA).
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