The idea of global organizations succeeding in poor markets has generated excitement among corporations’ executives. The recent announcement from Sub-Saharan Africa, that a Vodafone offshoot has collaborated with a local bank to offer real-time banking services sounded far-fetched. The opinion of skeptics is that this is absolute bull. Safaricom East Africa most reputed mobile telephone services provider unveiled a banking product, which allows consumers to save money and even access loans using their phones. The service is consummate after Safaricom entered into a partnership with Equity Bank, one of the fastest-growing banks in the region. This product is unique and aboriginal. It is a sign of better things to come.
Safaricom has aggressively marketed itself as a company providing affordable services for anyone regardless of his background. As an industry leader, Safaricom thrives by innovating smart services. The services are designed to seamlessly allow phone users to access services easily. The company had designed the M-Pesa service, which allows consumers to send money via phone, receive payments, so far, buy, and sell goods via phone. M-Kesho is a real-time phone banking service. It allows the customer to run an account like any other. You can deposit and withdraw money. You have no limits; you can save as much as you can. This product will allow millions of subscribers to access banking services so efficiently and cheaply.
M-Pesa is available in the UK and the company is still finding ways of expanding its reach across the world especially where there are Kenyans in the Diaspora. M-kesho is an M-Pesa clone. The unique aspect of the product is that it does not matter what kind of a phone you own. Provided you own a cell phone, you can access the services. It shows how technology can be turned into an investment that can provide people from all lifestyles with essential services. The M-kesho platform draws out a clear picture of technology being used in the service industry. While many mobile telephone services providers are struggling to bring new technology to the people, Safaricom is taking advantage of the less advantaged sections of society by allowing them to use the phones they have to continue enjoying essential services.
M-Kesho banking platform has loan facilities as explained by Telecom Paper (2010). A customer is able to access small amounts of loans. He/she can apply for the loan using the application menu and get the loan approved in a few hours. This business model is a replica of ‘payday loans’ though this one is more flexible and friendly. However, approval and processing depend on your credit history, similar criteria used in payday loan services. Safaricom is increasingly stamping its authority globally as a trendsetter. There seems to be a specific message they are sending, ‘even the poor markets can thrive.’
Investing in new smartphone technology is a waste of time in poor markets. Innovation, empowering the markets, and then investing in these markets is the unique business model the company is using. Even the poor markets can thrive if properly tapped as argued by Safaricom annually reports pre-tax profits amounting to billions of shillings while other industry players struggle to identify the new business process. Investing in services through mobile telephone services seems to be the next big thing. Safaricom won the award for the most innovative mobile telephone services company globally. This gave them the physic to become more innovative and set a trend.
Reference
Telecom Paper (2010) Safaricom, Equity Bank launch M-Pesa bank account. Web.