Equity, Safaricom eye regional mobile cash

Equity Bank and Safaricom signed a partnership that could see the two companies broaden their fintech offering across the local and regional markets.

The partnership comes almost 10 years since the two institutions launched M-Kesho, the first ever partnership between Safaricom and a commercial bank that nevertheless failed to obtain the traction experienced by KCB-M-Pesa and M-Shwari.

This time however, both institutions are banking on their relatively matured fintech offerings, with each leveraging on their wide user base and agency networks to roll out products and services that could dynamically shift the regional fintech sector.

“Today, we are very pleased to be renewing this partnership,” said Safaricom Chief Executive Officer Bob Collymore.

“This is not just about how to deepen financial inclusion but how to broaden it and move away from peer to peer money transfer to bringing a broader suite of financial services,” he said.

Through the partnership, the two firms hope to explore regional opportunities, simplify cash delivery between their agents and share technical knowledge to build a common approach to risks such as fraud and cyber-security.

Equity Bank, which late last year separated the mobile money arm Finserve into a stand-alone entity, could help facilitate M-Pesa’s entry into the regional market into countries like South Sudan, Uganda and the Democratic Republic of Congo, a prize that has eluded the giant telco for several years.

Safaricom on the other hand, could help facilitate increased uptake and transactions on Finserve through strategic sharing of its 156,000-strong agency network and Lipa na M-Pesa merchants.

“Our customers keep asking us how their experience can be made more convenient,” explained Equity Bank CEO James Mwangi.

“Payments and processing is key in financial inclusion and Safaricom is best at running the technology platform. What Equity bank does best is offer financial products that speak to the needs and aspirations of people,” he said.

The two said their partnership is targeted at Kenyans engaged in the real economy particularly, agriculture, micro, small and medium businesses and enterprise sectors.