Banks are what i would call a "Protectionist" society... they see something that is very innovative, which is very good for the customer. However, instead of promoting it and using technology to enhance their operations, they look at it as a threat to their operations.<br>
<br>I think banks should be going Equity's way - they complement technology - their products are based on technology and they dont fight it. I agree that M-transactions need to be policied, but in such a way that these policies/regulations benefit the consumer. <br>
<br>As a consumer, i believe in a free world, where i can move easily with as few restrictions as possible, to the service provider who meets my requirements, with least risk possible. <br><br>My 2 cents thoughts.<br><br>
Regards,<br>Titus.<br><br><div class="gmail_quote">2008/10/21 John Maina <span dir="ltr"><<a href="mailto:j.maina@ymail.com">j.maina@ymail.com</a>></span><br><blockquote class="gmail_quote" style="border-left: 1px solid rgb(204, 204, 204); margin: 0pt 0pt 0pt 0.8ex; padding-left: 1ex;">
<div><div style="font-family: times new roman,new york,times,serif; font-size: 12pt;"><div>Lizette and wainaina<br><br>Banks in this country never invest in innovation.<br><br>They invest on alot of research but never innovation. Where were they when Safaricom was researching and investing on technology? regulatingg MPESA will be so catastrophic. It should just be policed but not regulated and I believe thaat if at all Bw. Njuguna and PS. Ndemo are going to fall for the tricks of these banks then we are in for intersting times.<br>
<br>Banks must invest in innovation and they can easily get to Kenyan universities and sponsors competitions which will bring very much good results.<br><br>JM<br></div><div style="font-family: times new roman,new york,times,serif; font-size: 12pt;">
<br><div style="font-family: times new roman,new york,times,serif; font-size: 12pt;"><div class="Ih2E3d">----- Original
Message ----<br>From: Lizette Kraft <<a href="mailto:lfkraft@gmail.com" target="_blank">lfkraft@gmail.com</a>><br>To: <a href="mailto:j.maina@ymail.com" target="_blank">j.maina@ymail.com</a><br>Cc: KICTAnet ICT Policy Discussions <<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a>><br>
Sent: Tuesday, October 21, 2008 2:26:29 PM<br>Subject: Re: [kictanet] Kenya's Banks ask for regulation on Mobile Money Transfers<br><br>
<div>Hey what's up with these Banks who give their customers a real raw deal anyway!! The banks have never done anything for the people other than use them! Now they want to crush the one system that helps and allows the rich and the poor and marginalised to send funds without having to pay the drastic fees the banks charge. Everytime there is something that works for the masses and not just the priviledged there is an uproar to defeat the purpose!! The banks need the competition so they can learn to respect all. People in business in Kenya have for too long ripped off the wanainchi and they will have to learn to respect the consumers. Good on CBK not to agree bring M-Pesa and the like under their ACT. It shouldn't be allowed to operate without rules and regulations of course, to protect peoples money but we should do all possible to help technology take root that can help the people. My opinion entirely!</div>
<div> </div>
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</div><div><div><div></div><div class="Wj3C7c"><span class="gmail_quote">On 10/18/08, <b class="gmail_sendername">alice</b> <<a rel="nofollow" href="mailto:alice@apc.org" target="_blank">alice@apc.org</a>> wrote:</span>
</div></div><blockquote class="gmail_quote" style="border-left: 1px solid rgb(204, 204, 204); margin: 0px 0px 0px 0.8ex; padding-left: 1ex;"><div><div></div><div class="Wj3C7c"><br> (From Balancing Act)<br><br><br>
<br> Kenya's Banks ask for regulation on Mobile Money Transfers<br>
<br>The banking fraternity is crying foul over what it described as unfair<br>and increasing competition from money transfer operators. The industry<br>says the operators are enjoying privileges similar to those extended to<br>
deposit taking institutions despite not being covered by the same<br>regulatory regime.<br><br>"Currently, there is no legal framework within which these entities<br>provide their services despite behaving like current account<br>
institutions," says John Wanyela, executive director of the Kenya<br>Bankers Association. "If these operators want to join the financial<br>sector, they have to be properly licensed."<br><br>The bankers are calling on the government to subject the services to<br>
prudential regulations "for robust and secure movement of funds across<br>the economy." Under the proposed guideline, the services will have to be<br>supervised by a specialised financial regulatory authority that will<br>
oversee their financial soundness and stability.<br><br>Currently, the two leading mobile phone service providers - Zain and<br>Safaricom - are offering money-transfer services in the country under<br>Sokotele and M-Pesa brands respectively. Like other deposit takers, the<br>
bankers association wants the mobile cash transfer operators restricted<br>on how much deposits they can take.<br><br>To avert undue competition with the banking fraternity, Wanyela says,<br>M-Pesa and Sokotele services have to meet the capitalisation requirement<br>
as stipulated in the Banking Act. According to the Act, a deposit taking<br>institution should maintain a minimum capitalisation of Ksh250 million<br>($3.5 million).<br><br>This is however expected to double come December next year before<br>
hitting Ksh1 billion ($14.2 million) by 2010 after capitalisation<br>requirements were amended in this financial year's budget. The bankers<br>also say the "digital money" has implications for the conduct of<br>
monetary policy by the Central Bank of Kenya.<br><br>To control inflation levels in the country, CBK continuously monitors<br>the amount of money in circulation, mainly in the hands of people and<br>commercial banks. With the monies in circulation, CBK is in a position<br>
to maintain a reserve money target and, therefore, intervene to control<br>inflation. Observers say it is this huge amount of money circulating<br>electronically that has defeated CBK in the fight against inflation.<br><br>
Wanyela says it is time the government stepped in to ensure M-Pesa and<br>Sokotele services are regulated before "something goes wrong." Debate<br>has been rife on who should regulate the mobile phone money transfer<br>
operators, with some arguing that the CBK should be party to the<br>issuance of guidelines as "part of M-Pesa and Sokotele services fall<br>under the national payments system."<br><br>Fundamentally, the two mobile operations are guided by the<br>
Communications Commission of Kenya. Early last month, CBK said it had no<br>intention of bringing the mobile cash transfer services under the<br>Banking Act.<br><br>It claimed that treating the money transfer services under the Act may<br>
impede competition in sector that is still at its infancy in a country<br>whose majority population has limited access to financial services.<br><br><br>Safaricom statistics show that as at the end of the first quarter of<br>
this year, more than Ksh3.1 billion ($44.2 million) had been<br>transferred. From its launch in March 2007 till May this year, the<br>service has facilitated the transfer of more than Ksh23.77 billion<br>($339.5 million).<br>
(Source: The East African)<br><br>For further information on mobile payments in Africa purchase Balancing<br>Act's report "M-Money - Finances, Banking and Payments through mobile<br>phones"<br><br><br><br>
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</blockquote></div><div class="Ih2E3d"><br><br clear="all"><br>-- <br>Lizette Kraft<br>P.O. Box 18488, 00500<br>Nairobi, Kenya<br>Cell: 0722-800362
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