The bank's acquisition of a Mobile Network Operator license has shaken the country's players in the mobile telephony sector as its entry can only heighten the already fever pitch competition.
This will in essence pose a serious threat to
"By linking the account to the mobile phone, customers can apply for loans, move money to and from their bank accounts, pay bills as well as carry out trans-border transactions from their mobile phone," one bank official said.
"All our account holders will receive a SIM card without any 'know your customer' (requirement) since its already done while opening the account,"
Under this platform, every SIM card will be a debit card, enabling customers to pay for goods by tapping their phones on a mobile point of sale terminal.
The network will allow for seamless money transfer to all banks in
Mwangi said mobile money transfers will be charged at one percent of the transaction value compared to the prevailing market charges of 16% while instant loans will be available at a maximum of two percent per month compared with the 7.5 percent per month offered in the market.
Mwangi said that Airtel Kenya will support Equity's delivery of MVNO services without capital investment required by traditional mobile operators.
The bank targets to also launch voice, Data and SMS platform targeting its nine million customers countrywide.
The MVNO license is expected to allow the bank integrate along the value chain by allowing the bank to guarantee network availability.
In addition to hosting fees received, Airtel will also have access to distribute services through
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