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the power of agency banking
ngapat
#1 Posted : Thursday, April 14, 2011 3:43:37 PM
Rank: Member


Joined: 12/11/2006
Posts: 857
agency banking is one thing we can not take for granted. I believe it will bring huge profit to banks and is the reason I'm holding on to equity and kcb. infact we are talking of a revolution in banking here
“Invest in yourself. Your career is the engine of your wealth.”
ProverB
#2 Posted : Thursday, April 14, 2011 3:46:26 PM
Rank: Veteran


Joined: 3/12/2010
Posts: 1,199
Location: Eastlander
especially the fact that they have borrowed heavily from the M-Pesa model.. likely to bridge gaps left open by mpesa..especially on security aspect.
..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
Rahatupu
#3 Posted : Thursday, April 14, 2011 4:05:02 PM
Rank: Veteran


Joined: 12/4/2009
Posts: 1,982
Location: matano manne
Laughing out loudly Laughing out loudly Laughing out loudly Beba beba waharaka. KCB taking off nowApplause Applause
Wendz
#4 Posted : Thursday, April 14, 2011 4:21:59 PM
Rank: Elder


Joined: 6/19/2008
Posts: 4,268
ProverB wrote:
especially the fact that they have borrowed heavily from the M-Pesa model.. likely to bridge gaps left open by mpesa..especially on security aspect.


you are right.. some mpesa agents are slowly pulling out and moving into agency banking especially the mkesho because it seems to be the one hitting the ground. And i think equity is deliberately targeting mpesa agents because of their wide network. i have seen several shops painted equity colours. So am wondering, if this is going to be for a year and then it is open to all banks, then can one agent transact for all banks or will they be locked to one particular bank?
2012
#5 Posted : Thursday, April 14, 2011 5:04:43 PM
Rank: Elder


Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
ngapat wrote:
agency banking is one thing we can not take for granted. I believe it will bring huge profit to banks


I don't think it will be heaven all the way. I can foresee serious rise fraud and theft too...

BBI will solve it
:)
jasonhill
#6 Posted : Thursday, April 14, 2011 5:13:22 PM
Rank: Member


Joined: 1/22/2011
Posts: 322
Location: Chicago, IL, USA
ngapat wrote:
agency banking is one thing we can not take for granted. I believe it will bring huge profit to banks and is the reason I'm holding on to equity and kcb. infact we are talking of a revolution in banking here


I agree. Agency banking is a brilliant way to expand a bank's footprint and brand without having the usual heavy expense of organic or acquisition-level expansion. It has to be one of the best ideas I've seen in banking in years. That, and MPesa.

Best,

Hill
jasonhill
#7 Posted : Thursday, April 14, 2011 5:17:05 PM
Rank: Member


Joined: 1/22/2011
Posts: 322
Location: Chicago, IL, USA
2012 wrote:
ngapat wrote:
agency banking is one thing we can not take for granted. I believe it will bring huge profit to banks


I don't think it will be heaven all the way. I can foresee serious rise fraud and theft too...


They'd better lock themselves in tight- steel cage, bullet proof glass... banking agents probably have the #1 reason to apply to the KP for a firearms permit... but I'm sure that one would know the obvious risk when taking on such an endeavor. I do wonder though, God forbid one is robbed, are the agents responsible for the missing money or does the bank eat that cost? That would change the risk dynamic of the situation.

As far as fraud, the best thing would be a live webcam and instant transaction reporting. That would require a decent internet connection, but maybe that's a requirement... maybe the connection could start when a transaction starts and end when it ends, in order to save bandwidth. I would think that at least a cheap CCTV camera and DVR recorder (15000 Ksh from China) would be in order.

Best,

Hill
youcan'tstopusnow
#8 Posted : Thursday, April 14, 2011 5:41:54 PM
Rank: Chief


Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Rahatupu wrote:
Laughing out loudly Laughing out loudly Laughing out loudly Beba beba waharaka.

Laughing out loudlyLaughing out loudlyLaughing out loudly
GOD BLESS YOUR LIFE
Cde Monomotapa
#9 Posted : Thursday, April 14, 2011 10:26:48 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
I am yet to understand this agency stuff and how is KCB's special? @Wendz..good question. The security concerns as well though Mpesa agents haven't got got that much. I need to understand it better. 1 thing I am 100% sure is MFIs are pissing in pants!
Jaina
#10 Posted : Friday, April 15, 2011 6:45:35 AM
Rank: Member


Joined: 5/13/2008
Posts: 558
Agency Banking is a sure way of banks to gain. However, in my view unless the dynamics change, its not sustainable.

Reasons:

--1: One of the requirements to get an agency licence is to be having an existing successful business. Why?. Because you cannot make money as an agent and as such you have to multitask with the other existing business that you have to survive.

--2: The agent has to pay rent (if not own premises), hire staff, make arrangements on security of the money in their posession. (A Big problem for an agent). The bank provides the platform as well as branding the outlet etc which makes it difficult for one agent to represent multiple banks.

However, there are some synergies that your existing business will gain as a result of the association.


Cde Monomotapa
#11 Posted : Friday, April 15, 2011 8:01:35 AM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
Thanks @Jaina for the contribution. I guess we will have to see how it plays out. Mmm..I remember my skeptism & paranoia when Mpesa was launched.ati how do I handle my biz on the street?! Riswa!! Look @ me(us) now...moreovr, how carrying laptops in tao is so common place now than before...LOL! Na hiyo ni maendeleo.
Elder
#12 Posted : Friday, April 15, 2011 10:22:53 AM
Rank: Elder


Joined: 9/7/2010
Posts: 2,148
Location: elderville
Wendz wrote:
ProverB wrote:
especially the fact that they have borrowed heavily from the M-Pesa model.. likely to bridge gaps left open by mpesa..especially on security aspect.


you are right.. some mpesa agents are slowly pulling out and moving into agency banking especially the mkesho because it seems to be the one hitting the ground. And i think equity is deliberately targeting mpesa agents because of their wide network. i have seen several shops painted equity colours. So am wondering, if this is going to be for a year and then it is open to all banks, then can one agent transact for all banks or will they be locked to one particular bank?


Understand it is not exclusive and an agent can have as many banks as it can handle. Was only told by one of the agency sales rep and have not confirmed it though.
He who can express in words the ardour of his love, has but little love to express. - Petrach, Son. (That men by various ways arrive at the same end. - Montaigne, The Essays of.)
Wendz
#13 Posted : Friday, April 15, 2011 2:43:13 PM
Rank: Elder


Joined: 6/19/2008
Posts: 4,268
Jaina wrote:
Agency Banking is a sure way of banks to gain. However, in my view unless the dynamics change, its not sustainable.

Reasons:

--1: One of the requirements to get an agency licence is to be having an existing successful business. Why?. Because you cannot make money as an agent and as such you have to multitask with the other existing business that you have to survive.

--2: The agent has to pay rent (if not own premises), hire staff, make arrangements on security of the money in their posession. (A Big problem for an agent). The bank provides the platform as well as branding the outlet etc which makes it difficult for one agent to represent multiple banks.

However, there are some synergies that your existing business will gain as a result of the association.



You could be right..but i really doubt if this was the major reason why. I would think the reason why they require you to have an existing business is so as to avoid cases of a person opening a corner shop, collecting deposits and closing off and disappearing. If you have an existing business, chances of pulling a fast one is minimal because such business is usually registered and full details can be sort from company registry if they are to track you down.

The issue of security will be a big thorn in the agency business. i think the banks were trying to also distribute their risk exposure in handling the cash. The banks are bound to gain more of course... but it also creates employment in a way.
moneydust
#14 Posted : Friday, April 15, 2011 4:09:38 PM
Rank: Member


Joined: 1/31/2007
Posts: 303
Wendz wrote:
Jaina wrote:
Agency Banking is a sure way of banks to gain. However, in my view unless the dynamics change, its not sustainable.

Reasons:

--1: One of the requirements to get an agency licence is to be having an existing successful business. Why?. Because you cannot make money as an agent and as such you have to multitask with the other existing business that you have to survive.

--2: The agent has to pay rent (if not own premises), hire staff, make arrangements on security of the money in their posession. (A Big problem for an agent). The bank provides the platform as well as branding the outlet etc which makes it difficult for one agent to represent multiple banks.

However, there are some synergies that your existing business will gain as a result of the association.



You could be right..but i really doubt if this was the major reason why. I would think the reason why they require you to have an existing business is so as to avoid cases of a person opening a corner shop, collecting deposits and closing off and disappearing. If you have an existing business, chances of pulling a fast one is minimal because such business is usually registered and full details can be sort from company registry if they are to track you down.

The issue of security will be a big thorn in the agency business. i think the banks were trying to also distribute their risk exposure in handling the cash. The banks are bound to gain more of course... but it also creates employment in a way.


The reason why they insist one having an established business is that this is one of the CBK guidelines.I think it was intended to ensure that only those that have bn tried and tested in business run the agencies,and people dont open,close and hawk agencies as is currently the case with mpesa lines especially since banking is a confidence business.Agency banking works in the same format as mpesa ie an agent can only receive money if he has a float with the bank, so there is no chance for an agent running off with customers money
For security,I think this is where the model has the biggest challenge given they can have as much as Kshs.300,000 in cash at any one time.Already 2 agents in my estate have been robbed Kshs.400,000 They were both running agencies with equity bank.However one of them told me that the money is insured,dont know how true that is..
Cde Monomotapa
#15 Posted : Friday, April 15, 2011 5:33:00 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
If the money is insured then premiums must be hefty! Will this thing work really? Co-op ought to be most succesful when they stick to pushing Agency banking via Sacco & Fosa.
ejaab
#16 Posted : Tuesday, May 31, 2011 6:26:28 PM
Rank: New-farer


Joined: 5/31/2011
Posts: 19
They'd better lock themselves in tight- steel cage, bullet proof glass... banking agents probably have the #1 reason to apply to the KP for a firearms permit... but I'm sure that one would know the obvious risk when taking on such an endeavor. I do wonder though, God forbid one is robbed, are the agents responsible for the missing money or does the bank eat that cost? That would change the risk dynamic of the situation.

As far as fraud, the best thing would be a live webcam and instant transaction reporting. That would require a decent internet connection, but maybe that's a requirement... maybe the connection could start when a transaction starts and end when it ends, in order to save bandwidth. I would think that at least a cheap CCTV camera and DVR recorder (15000 Ksh from China) would be in order.

Am a security consultant and from the advice above, cheap is expensive.
My question to anybody wanting extra security, is the security solution you want to install worth business/premises been secured?
Good security is not cheap and with fibre and good internet connections, IP surveillance and network based DVR will be ideal, as much as price is crucial please consider your investment/s.
"For I know the plans I have for you,” declares the LORD, “plans to prosper you and not to harm you, plans to give you hope and a future"
kachambi
#17 Posted : Tuesday, May 31, 2011 10:04:04 PM
Rank: Hello


Joined: 5/28/2011
Posts: 5
Location: Nairobi
If the concept of agency banking works, i believe this will be very big... it hapens in other countries where one is able to get cash from the cashier and your credit card or debit card is charged. We must not kid ourselves, the fruadsters are standing in line to take advantage of any loopholes.
Robinhood
#18 Posted : Wednesday, June 08, 2011 8:30:24 AM
Rank: Elder


Joined: 12/11/2008
Posts: 2,306
This is the future of banking...
Great men are not always wise, neither do the aged understand judgement...
bird_man
#19 Posted : Wednesday, June 08, 2011 9:02:58 AM
Rank: Veteran


Joined: 11/2/2006
Posts: 1,206
Location: Nairobi
An internet connection is not needed for live deposits/enquiry into the banks system.One can use a gsm POS device as is the current case with faulu kenya field agents.
Formally employed people often live their employers' dream & forget about their own.
tony stark
#20 Posted : Thursday, December 15, 2016 1:37:04 PM
Rank: Veteran


Joined: 7/8/2008
Posts: 900
How many Agency Bankers are there on Wazua and how is it going. Watu wakinyamazia inakaa there are good things happening there.
Wazua speak!
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