Equity Group to acquire a million more Equitel SIM cards

Equity Group is set to bring in the second bunch of a million Equitel SIM Cards, but is awaiting an approval by Communications Authority of Kenya (CA) on what their next prefix will be.

This was confirmed by John Staley, Chief Officer – Finance, Innovation And Technology during an investor briefing on financial results of the bank in the first quarter, where they recorded a net profit at Sh4.2 billion compared to Sh3.8 billion a year earlier. This came as total interest income rose 12.5 per cent to Sh9.4 billion, largely driven by a 25.3 per cent jump in the loan book to Sh224.7 billion

Equitel also posted a growth of 81% up from 62 % growth in mobile banking between the month of October 2014 and March 2015 and the subscribers number grew up from 209,554 subscribers in March 2014 to reach 665,661 subscribers in March 2015.

On Equitel M-Banking transactions, The Group recorded a growth of 4.5 million transactions in March 2015 up from 800,000 transaction in October 2014.

Equitel, SIM Cards currently bear the prefix 0763xxxxxx and is integrated in Equity’s banking and mobile services. With the technology Equity aims in avoiding any additional costs of printing and cards distributions in the feature. Other services on the platform include the ability to apply for loan, checking account balances and changing the PIN.

The card also enables one to manage their ATM card or even a cheque from their mobile phones. Most features will be added over time while the existing ones will also be improved as Equity is eager to venture into the industry.

Dr. James Mwangi CEO Equity Bank has also said that Equitel had recorded 16.2 million calls and the bank was looking into enabling the SIM Cards to do borrowing and disbursement of loans via phone. He also added that the bank was looking into upgrading to version 6 in readiness to the MVNO.

Touching on Agent bank, the group also noted that they had recorded a continuous growth, the number of agents had grown up to 19,336 agents recording a 60% growth year on year.

“The group’s sustained investments in mobile and agency banking, payment systems and money transfer as well as diaspora remittances and operating expenses optimisation initiatives will continue to contribute to the positive growth trajectory,” Equity Group Holdings CEO & managing director James Mwangi explained during an investors’ briefing in Nairobi.

During the investor briefing it was announced that the purchase of 12.2 per cent interest in the group was completed between Norfund and Norwegian private investors.

“Equity is delighted to welcome Norfund and Norfinance into the anchor shareholding of the Group. The investment further strengthens and diversifies Equity Group’s capital base and the Bank is confident that the combination of Norfund’s depth of expertise and experience in the financial services sector,” he concluded.