Kenya’s I&M Bank has made two bold moves in recent days:
1. The second was the purchase of a stake in a Tanznian Bank, after their venture last year into Mauritius. It will probably be similar to the bank buy by NIC in Tanzania that they (NIC) revealed to their shareholders. But expert analyst @coldtusker points out that it has taken six years for I&M’s foray to bear fruit in Tanzania.
Also, Ratio Magazine just published a timely Tanzania Country Brief which has this comment on the banking sector;
…Tanzania is already home to 25 banks – none of which have managed to bring down the country’s high interest rates (many banks charge up to 25%). There is much opportunity to court new customers, as only 10% of Tanzania’s 40 million people have access to formal banking services. But scarce human resources that have plagued other foreign entrants will also be a challenge…
From ABN Digital: On 27/01/10 CNBC Africa's Alishia Seckam spoke to Suprio Sengupta from I & M Bank
2. The first was the was the partnership with partnership with VISA that may place I&M at the forefront of the e-commerce banking in Kenya, which though it still has a small debit and credit card base, these consumers now have the access and a platform to make online payments as well as for local merchants to sell their goods, and receive payments, online.
6 comments:
Interesting!
Suprio Sengupta was on Power Lunch today from our studio here in Nairobi talking on this!
let me try and add the video
The most important beneficial aspect of the partnership with VISA is ease of remittance by the guys in the Diaspora. Any company that is targeting Diaspora clients can now get remittance directly and at a cheaper rate than Western Union and MoneyGram. I know Serena Hotels and a big Insurance Company have already signed up with I&M.
As many of the readers of my (almost defunct) blog & (very active) twitter accounts know... I bank with I&M Bank...
I moved from CFC Bank after the merger with Stanbic. The 'new' rules & fees at CFCSB were not to my liking.
Whereas I may not bank in Tanzania, it is good to know that I&M will be there when the Tanzanian capital markets open to Kenyans.
@Empower - I believe the larger benefit of the e-commerce platform is for locals to buy from websites abroad...
Many services including Paypal (right or wrong) discriminate against African 'buyers' coz of the high (or perceived) level of fraud.
I&M has a small customer base but an influential & affluent base especially in the commercial & industrial sector.
@CT
you are right about ease of purchase from websites abroad.
I&M is also issuing temporary VISA cards which you can load money and make a transaction. Simply use the funds that you have deposited into the card.
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