Agency banking growing

[RV Pundit]

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Now handling 1B transaction daily. A lot can be said about CBK but i think Prof Ndungu tenure has really taken our banking to another level.

http://www.businessdailyafrica.com/Agency-banking-transactions-hit-Sh320bn-mark/-/539552/2620776/-/item/1/-/fl4q86z/-/index.html

A recent survey by Financial Services Deepening Kenya showed the agents had significantly increased access to banking services with 52 per cent of the population being within three kilometres of an agent, compared with only 22 per cent within three kilometres of a branch.

[vooke]

Am reliably told that Equity championed agency banking, lobbied hard till CBK fell for it.

I have never used them services but a few weekends ago a negro who owed me took me to several agencies in town. Standard feedback was 'sina float'. Very few agents are operational despite signage, at least from that experience

[RV Pundit]

Indeed Equity i think championed [having understood the strength of MPESA laid with it agent network] it but CBK led by Prof Ndungu did not see the need to stall it; they developed the regulations and set the ball rolling.

In places like Nairobi..agents are not as crucial as in places like Ndanai in Bomet where my cousin was harrasing me to open an account for him..because apparently there is KCB agent there.I have used Zippo thing[look like super agent] on a supermarket...but mainly to get into chase bank hand held thing.

Nairobi is already well served by Banks..but in most of rural kenya..banks are typical 30-40Kms away...or in money+time..a whole day and 500shs away.

The opportunity cost for the customer is immense...the saving for the banks is immense[zero opex+capex]..and for agents..it a business line.

I predict in the near future..except for really big transactions...agent banking and Mpesa..will be the main banking model...not the alternative model.

This is not good news for bankers like Vooke...who will have to endure more Mckinssey retrenchment.

Am reliably told that Equity championed agency banking, lobbied hard till CBK fell for it.

I have never used them services but a few weekends ago a negro who owed me took me to several agencies in town. Standard feedback was 'sina float'. Very few agents are operational despite signage, at least from that experience

[vooke]

I agree,
One too many agents competing with ATMs don't make much sense
Btw,haven't heard nothing on Equitel the 'revolutionary' MVNO from Mwange.

Indeed Equity i think championed [having understood the strength of MPESA laid with it agent network] it but CBK led by Prof Ndungu did not see the need to stall it; they developed the regulations and set the ball rolling.

In places like Nairobi..agents are not as crucial as in places like Ndanai in Bomet where my cousin was harrasing me to open an account for him..because apparently there is KCB agent there.I have used Zippo thing[look like super agent] on a supermarket...but mainly to get into chase bank hand held thing.

Nairobi is already well served by Banks..but in most of rural kenya..banks are typical 30-40Kms away...or in money+time..a whole day and 500shs away.

The opportunity cost for the customer is immense...the saving for the banks is immense[zero opex+capex]..and for agents..it a business line.

I predict in the near future..except for really big transactions...agent banking and Mpesa..will be the main banking model...not the alternative model.

This is not good news for bankers like Vooke...who will have to endure more Mckinssey retrenchment.

Am reliably told that Equity championed agency banking, lobbied hard till CBK fell for it.

I have never used them services but a few weekends ago a negro who owed me took me to several agencies in town. Standard feedback was 'sina float'. Very few agents are operational despite signage, at least from that experience