Earlier this week, Equity Bank launched an assorted offering of “Eazzy” digital banking solutions in a move that is expected to transform traditional banking in Kenya. Strikingly, the beginning of a migration by the bank from traditional banking solutions to digital banking solutions effectively halted branch expansion as the bank seeks to tap on the growing tech clientele. According to Ndindi Nyoro, the head of Nairobi-based Investax Capital Limited, this move is expected to offer Equity customers easier and comprehensive baking solutions. “Items such as transaction settlements, payment of bills, loan applications, cash and liquidity management will no longer require customers to carry them over the counter,” he told Bizna Kenya.
This move made Equity the first bank in Kenya to fully pursue digital banking. To farther explore the impact of Equity’s digital move, Bizna Kenya looked at how Equity will transform banking as you know it. To begin with, Equity’s digital banking includes the Eazzy App and Online Banking. The all-inclusive Eazzy suite of banking products includes the Eazzy App banking application which is downloadable from mobile phones, an interoperable payment platform dubbed Eazzy Pay, a Eazzy Loan mobile-based loan platform, and Eazzy Chama which is designed to anchor investments and finance management of chamas in Kenya.
CLICK HERE TO LEARN MORE ON EQUITY BANK’S EAZZY APP
Additionally, under its Online Banking product, the bank has established the self-service portal, Eazzy net and Eazzy Biz. Under the Eazzy Net platform, customers will be able to manage their bank accounts from the comfort of their mobile phones. When using the Eazzy Biz product, small and medium business owners will be able to manage cash and liquidity.
CLICK HERE TO LEARN MORE ON EQUITY BANK’S ONLINE BANKING
Evidently, Equity Bank’s migration to digital banking is anchored by the rise of its mobile money platform Equitel, which allows customers to transact and borrow money from their mobile phones. According to Equity Bank chief executive officer Dr. James Mwangi, the rapid adoption of mobile and other digital banking channels are a pointer on how banking is being transformed. For instance, by May this year, the amount of loans disbursed on Equitel had doubled to Sh. 14.1 billion from 2 million issued Equitel sim cards. This accounted for 81 per cent of all loans disbursed by the bank. For the period ended September 2016 Equitel mobile loan disbursements accounted for 84 per cent of all loan disbursements compared to just 16 per cent for branch loan disbursements.
Interestingly, according to a report by London-based Exotix, Equity bank’s Equitel is expected to account for over half of the expected 20.5 million transactions by 2019, with the bank’s target of having 10 million customers being the key volume driver. Currently, Equity customers can take up to Sh. 3 million on Equitel which is payable within a one year period. This is an increase from Sh. 100 and Sh. 200,000 amount that was accessible on the mobile network and payable within a month.
The bank’s digital banking network will be anchored on an IT web which has been set up at a cost of Sh. 20 billion over the past few years. In a bid to ensure efficiency, safety and privacy in transaction, Equity has partnered with leading global data firms such as Oracle, Apigee, Airtel, OpenWay, Infosys, and Experian Micro-analytics who will be providing software and hardware technology, credit scoring, card management, innovation platforms, and MVNO capability.
Interestingly, according to Mr. Nyoro, by leading the pack in technological innovations and product improvement, Equity Bank is setting up its shareholders for improved gains at the Nairobi Securities Exchange. “Equity has been one of the few stocks that are profitably and fundamentally strong counters at the local bourse. By going digital, investors who put their money on Equity Group will be guaranteed an improved price position at the market in the coming months. This will be in tandem with the bank’s improved efficiencies, and profitability from less operating costs,” he says.
