Finserve Africa Limited (
doing business as
A trade name, trading name, or business name, is a pseudonym used by companies that do not operate under their registered company name. The term for this type of alternative name is a "fictitious" business name. Registering the fictitious name w ...
Equitel)
is a
mobile virtual network operator
A mobile virtual network operator (MVNO) is a wireless communications services provider that does not own the wireless network infrastructure over which it provides services to its customers. An MVNO enters into a business agreement with a mobil ...
(MVNO) in
Kenya
)
, national_anthem = "Ee Mungu Nguvu Yetu"()
, image_map =
, map_caption =
, image_map2 =
, capital = Nairobi
, coordinates =
, largest_city = Nairobi
, ...
. It is a wholly owned subsidiary of
Equity Group Holdings
Equity Group Holdings Limited (EGHL), formerly Equity Bank Group, is a financial services holding company based in the African Great Lakes region. EGHL's headquarters are in Nairobi, Kenya, with subsidiaries in Kenya, Uganda, Tanzania, South Sud ...
and is using the
Airtel Kenya
Airtel Kenya Ltd (commonly known as Airtel), a subsidiary of Airtel Africa (owned by Bharti Airtel), is the second largest telecommunications services provider in Kenya after Safaricom PLC. It has an estimated 16.2 million subscribers of the tot ...
network as its carrier.
Overview
The Equitel brand was hailed by Equity Group as the "next big thing", as part of an overhaul dubbed "Equity 3.0". The move was to give Equity Bank the opportunity to continue its mission of furthering financial inclusion and innovative service offerings for all
Kenyan
)
, national_anthem = "Ee Mungu Nguvu Yetu"()
, image_map =
, map_caption =
, image_map2 =
, capital = Nairobi
, coordinates =
, largest_city = Nairobi
, ...
s by presenting their financial services offering on to a single platform which will make banking services more accessible, flexible convenient and more affordable. Airtel Kenya on their part stated that the partnership would increase their revenue by up to 10%.
The brand made Equity Bank the first financial institution in
Africa
Africa is the world's second-largest and second-most populous continent, after Asia in both cases. At about 30.3 million km2 (11.7 million square miles) including adjacent islands, it covers 6% of Earth's total surface area ...
to offer a full banking suite through an MVNO.
History
Equity Bank, through its subsidiary Finserve Africa Limited, received its MVNO Licence on 11 April 2014, along with Tangaza Money and Zioncell Kenya. All which would run on Airtel Kenya's network, a move that was opposed by the Consumer Federation of Kenya,
Safaricom
Safaricom PLC is a listed Kenyan mobile network operator headquartered at Safaricom House in Nairobi, Kenya. It is the largest telecommunications provider in Kenya, and one of the most profitable companies in the East and Central Africa region. Th ...
and
Telkom Kenya
Telkom Kenya is an integrated telecommunications provider in Kenya. It was previously a part of the Kenya Posts and Telecommunications Corporation (KPTC) which was the sole provider of both postal and telecommunication services. The company was ...
For the bank, the move was aimed at lowering their transaction costs by up to 47% as well as an added revenue stream by providing money transfer and other
telco services to their 14.3 million customers.
Due to the requirement to have a
SIM card
file:SIM-Karte von Telefónica O2 Europe - Standard und Micro.jpg, A typical SIM card (mini-SIM with micro-SIM cutout)
file:Sim card.png, A smart card taken from a Global System for Mobile Communications, GSM mobile phone
file:Simkarte NFC SecureE ...
to access the service, users would therefore need an additional
mobile phone
A mobile phone, cellular phone, cell phone, cellphone, handphone, hand phone or pocket phone, sometimes shortened to simply mobile, cell, or just phone, is a portable telephone that can make and receive calls over a radio frequency link whil ...
or
Dual SIM
Some mobile phones support use of two SIM cards, described as dual SIM operation. When a second SIM card is installed, the phone either allows users to switch between two separate mobile network services manually, has hardware support for keeping ...
phone. Equity Bank overcame this challenge by adopting the use of 0.1 millimetres thick ultra-slim SIM cards from Taisys Solutions, using technology originally developed in China. The ultra-slim SIM cards are placed at the back of normal SIM cards therefore tackling this challenge effectively. This ultra-slim SIM cards would also come with
Near Field Communication
Near-field communication (NFC) is a set of communication protocols that enables communication between two electronic devices over a distance of 4 cm (1 in) or less. NFC offers a low-speed connection through a simple setup that can be u ...
(NFC) capability that enables them to be swiped on the point of sale devices or
ATM thus converting a mobile phone into a
credit
Credit (from Latin verb ''credit'', meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt), ...
or
debit card
A debit card, also known as a check card or bank card is a payment card that can be used in place of cash to make purchases. The term '' plastic card'' includes the above and as an identity document. These are similar to a credit card, but u ...
.
Market leader
Safaricom
Safaricom PLC is a listed Kenyan mobile network operator headquartered at Safaricom House in Nairobi, Kenya. It is the largest telecommunications provider in Kenya, and one of the most profitable companies in the East and Central Africa region. Th ...
wrote to the
Communications Authority of Kenya
The Communications Authority of Kenya (CA) is the regulatory authority for the ICT (Information, Communications and Technology) industry in Kenya with responsibilities in telecommunications, e-commerce, broadcasting and Postal Service, postal/co ...
(CAK) challenging the use of ultra-slim SIM cards stating that they could expose their subscribers to intercepted communication and financial fraud on
M-Pesa service. Despite this, Finserve Africa were granted a one-year trial period through the 0763xxxxxx prefix.
On 22 September 2014, Safaricom stated that it would review its legal commitments to M-Pesa customers who opt to use the Equitel overlay SIM cards. In addition, the CCK required Finserve Africa to make a written undertaking to compensate mobile phone subscribers for any losses they may incur during the one-year trial of its thin SIM, putting to test the company’s assertion that the technology is safe.
On 14 October 2014, Equity Bank Kenya started issuing ordinary SIM cards for telecommunication and mobile banking services to its 8.7 million customers across the country.
In August 2018, Equity Group spun off its fintech arm into Finserve Africa Limited, a fully-owned subsidiary with its own board and management, headed by Jack Ngare.
As of December 2018, data from the Communications Authority of Kenya showed that Equitel was the second-biggest mobile-money transfer service in Kenya with over 2.075 million subscribers. During this period, they transacted a total of Ksh467.2 billion ($4.25 billion). This value was 22.04% of Kenya’s mobile money transactions.
During 2020, the MVNO Equitel handled Ksh934 billion (approx $8.51 billion) in transaction value but the customer base had reduced to 1.8 million. As at March 2021, Equity Group’s Quarterly report showed Equitel registered a 163% volume growth of Ksh421.8 billion ($3.84 billion) from Ksh160.5 billion ($1.46 billion).
On 12 August 2021, Equity announced the roll out of its
LTE or fourth-generation (4G) broadband network service for Equitel SIM cards becoming the fifth telco in Kenya to offer 4G services.
Other locations
Equity Group Holdings plans to roll out their mobile virtual network in
Uganda
}), is a landlocked country in East Africa
East Africa, Eastern Africa, or East of Africa, is the eastern subregion of the African continent. In the United Nations Statistics Division scheme of geographic regions, 10-11-(16*) territor ...
,
Tanzania
Tanzania (; ), officially the United Republic of Tanzania ( sw, Jamhuri ya Muungano wa Tanzania), is a country in East Africa within the African Great Lakes region. It borders Uganda to the north; Kenya to the northeast; Comoro Islands and ...
and
Rwanda
Rwanda (; rw, u Rwanda ), officially the Republic of Rwanda, is a landlocked country in the Great Rift Valley of Central Africa, where the African Great Lakes region and Southeast Africa converge. Located a few degrees south of the Equator ...
through their partnership with
Airtel Africa
Airtel Africa plc, commonly known as (d/b/a) Airtel, is a multinational company that provides telecommunications and mobile money services in 14 countries in Africa, primarily in East, Central and West Africa. Airtel Africa is majority owned by ...
.
Equity Group Holdings
Equity Group Holdings
Equity Group Holdings Limited (EGHL), formerly Equity Bank Group, is a financial services holding company based in the African Great Lakes region. EGHL's headquarters are in Nairobi, Kenya, with subsidiaries in Kenya, Uganda, Tanzania, South Sud ...
is a largest financial services group in East Africa. As of June 2021, the group had an asset base valued at over US$10.2 billion (KES1.119 trillion), with a total customer base in excess of 14 million, in the region the group serves. The companies that comprise the Equity Bank Group include the following:
*
Equity Bank Kenya Limited
Equity Bank Kenya Limited is a financial services provider headquartered in Nairobi, Kenya. It is licensed as a commercial bank by the Central Bank of Kenya, which is the central bank and national banking regulator of Kenya. In 2010 the bank in ...
–
Nairobi
Nairobi ( ) is the capital and largest city of Kenya. The name is derived from the Maasai phrase ''Enkare Nairobi'', which translates to "place of cool waters", a reference to the Nairobi River which flows through the city. The city proper ha ...
, Kenya
*
Equity Bank Rwanda Limited –
Kigali
Kigali () is the Capital (political), capital and largest city of Rwanda. It is near the nation's geographic centre in a region of rolling hills, with a series of valleys and ridges joined by steep slopes. As a primate city, Kigali has been Rwa ...
, Rwanda
*
Equity Bank South Sudan Limited
Equity Bank South Sudan Limited (EBSSL) is a commercial bank in South Sudan. The bank provides banking services to individuals and to small and medium business enterprises. It is one of the commercial banks licensed to operate in the country by ...
–
Juba, South Sudan
Juba () is the capital and largest city of South Sudan. The city is situated on the White Nile and also serves as the capital of the Central Equatoria State. It is the world's newest capital city to be elevated as such, and had a populatio ...
*
Equity Bank Tanzania Limited
Equity Bank Tanzania Limited, is a commercial bank in Tanzania, the second-largest economy in the East African Community. It is licensed by the Bank of Tanzania, the country's central bank and national banking regulator. The bank is a member of th ...
–
Dar es Salaam
Dar es Salaam (; from ar, دَار السَّلَام, Dâr es-Selâm, lit=Abode of Peace) or commonly known as Dar, is the largest city and financial hub of Tanzania. It is also the capital of Dar es Salaam Region. With a population of over s ...
, Tanzania
*
Equity Bank Uganda Limited
Equity Bank Uganda Limited (EBUL), is a commercial bank in Uganda. It is licensed by the Bank of Uganda, the central bank and national banking regulator. EBUL is a subsidiary of Equity Group Holdings Limited, a financial service conglomerate with ...
–
Kampala
Kampala (, ) is the capital and largest city of Uganda. The city proper has a population of 1,680,000 and is divided into the five political divisions of Kampala Central Division, Kawempe Division, Makindye Division, Nakawa Division, and Ruba ...
, Uganda
*
Equity Banque Commerciale du Congo
Equity Banque Commerciale du Congo (EquityBCDC) is a commercial bank in the Democratic Republic of the Congo. It is a merger between Equity Bank Congo (EBC), formerly ProCredit Bank DRCongo, and Banque Commerciale du Congo. This followed the a ...
–
Kinshasa
Kinshasa (; ; ln, Kinsásá), formerly Léopoldville ( nl, Leopoldstad), is the capital and largest city of the Democratic Republic of the Congo. Once a site of fishing and trading villages situated along the Congo River, Kinshasa is now one o ...
,
Democratic Republic of the Congo
The Democratic Republic of the Congo (french: République démocratique du Congo (RDC), colloquially "La RDC" ), informally Congo-Kinshasa, DR Congo, the DRC, the DROC, or the Congo, and formerly and also colloquially Zaire, is a country in ...
* Equity Consulting Group Limited –
Nairobi
Nairobi ( ) is the capital and largest city of Kenya. The name is derived from the Maasai phrase ''Enkare Nairobi'', which translates to "place of cool waters", a reference to the Nairobi River which flows through the city. The city proper ha ...
, Kenya
* Equity Insurance Agency Limited –
Nairobi
Nairobi ( ) is the capital and largest city of Kenya. The name is derived from the Maasai phrase ''Enkare Nairobi'', which translates to "place of cool waters", a reference to the Nairobi River which flows through the city. The city proper ha ...
, Kenya
* Equity Nominees Limited –
Nairobi
Nairobi ( ) is the capital and largest city of Kenya. The name is derived from the Maasai phrase ''Enkare Nairobi'', which translates to "place of cool waters", a reference to the Nairobi River which flows through the city. The city proper ha ...
, Kenya
* Equity Investment Services Limited –
Nairobi
Nairobi ( ) is the capital and largest city of Kenya. The name is derived from the Maasai phrase ''Enkare Nairobi'', which translates to "place of cool waters", a reference to the Nairobi River which flows through the city. The city proper ha ...
, Kenya
*
Finserve Africa Limited –
Nairobi
Nairobi ( ) is the capital and largest city of Kenya. The name is derived from the Maasai phrase ''Enkare Nairobi'', which translates to "place of cool waters", a reference to the Nairobi River which flows through the city. The city proper ha ...
, Kenya
Shares of the
stock
In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company ...
of Equity Group Holdings Limited, the parent company of Finserve Africa Limited, are listed on the
Nairobi Stock Exchange
The Nairobi Securities Exchange (NSE) was established in 1954 as the Nairobi Stock Exchange, based in Nairobi the capital of Kenya. It was a voluntary association of stockbrokers in the European community registered under the Societies Act in ...
(NSE), under the symbol EQTY. The Group's stock is also cross-listed on the
Uganda Securities Exchange
The Uganda Securities Exchange (USE) is the principal stock exchange of Uganda. It was founded in June 1997. The USE is operated under the jurisdiction of Uganda's Capital Markets Authority, which in turn reports to the Bank of Uganda, Uganda's ...
(USE), under the symbol EBL.
See also
*
Equity Group Holdings
Equity Group Holdings Limited (EGHL), formerly Equity Bank Group, is a financial services holding company based in the African Great Lakes region. EGHL's headquarters are in Nairobi, Kenya, with subsidiaries in Kenya, Uganda, Tanzania, South Sud ...
*
Equity Bank Kenya
Equity Bank Kenya Limited is a financial services provider headquartered in Nairobi, Kenya. It is licensed as a commercial bank by the Central Bank of Kenya, which is the central bank and national banking regulator of Kenya. In 2010 the bank in ...
*
Equity Bank Rwanda
*
Equity Bank South Sudan
Equity Bank South Sudan Limited (EBSSL) is a commercial bank in South Sudan. The bank provides banking services to individuals and to small and medium business enterprises. It is one of the commercial banks licensed to operate in the country by ...
*
Equity Bank Tanzania
*
Equity Bank Uganda
References
{{Equity Group Holdings Limited , state=collapsed
Mobile virtual network operators
Technology companies established in 2014
Telecommunications companies of Kenya
Kenyan companies established in 2014