Wednesday, March 12, 2008

Bank Wars: Pepea

Barclays is really going after small accounts holders and low savers such as students. The latest account is called Pepea (implies lightness) which is an ATM-based account with a flat fee of just 100 shillings ($1.5) and 20/= per ATM withdrawal – putting it in the range of Equity’s 50/= fees. This extends Barclays aggressive growth to counter Equity Bank – to an extent that it seems they are subsiding services in order to gain deposits and accounts.

With Pepea, you actually get penalized if you have more than 30,000 shillings ($425) in your account.


Concept said...

Equity bank has succeeded where many multinationals have failed because as opposed to the multinationals whose aim is to attract deposit and buy TB’s, Equity goal is to lend to ‘Mwananchi’ hence its popularity.
BBK is yet to shed its high street image in as far as interest goes. Currently, Equity is charging a rate of 15% to 17% while BBK unsecured can go a high of 21%.
I think the average bank customer has wisened and now knows where his deposit will work for him/her. I expect the fight for customer deposits to go for a long time.


adam cartwright said...

kimunya says safaricom ipo details kesho details over at the panderosa

maggie said...

Equity is fashioned after the famous Grameen Bank in Bangladesh.

I soon came to realise that in Kenya, 'the fortune really is at the bottom of the pyramid'. Equity saw that and capitalised on it. Barclays, Standard Chartered and the likes stuck to high end market but they have soon realised that really, they need to come down to where the common man is.

I was shocked the other day to see Barclays Bank in River Road. Clearly, the BANK WARS have began.


E-Nyce said...

off-topic...Maggie, very nice website (blog?) you have.


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