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and Respond to The Economist, answering the following questions (also on the
blog):
1)Do
you think M-PESA has potential outside of Kenya – would people use it in Italy
or does credit/cash prevail?
2)If
you were CEO of M-PESA, how would you expand the company and/or the idea?
Meaning, what opportunities are there for growth?
1) I don't think that M-PESA has potentials outside of Kenya in developed countries like Italy. This is due to the fact that in developed countries like Italy the banking companies are too developed and have too many branches of the company around cities. So there is always the availability of collecting money from an ATM so there will not be problems like the ones that Mr. Shrivastav had. There will be no problems where people will not be able to receive money and people will die because of this. Instead M-PESA will have possibilities in underdeveloped countries, where there are not banks, which install branches and ATMs and the people are unable to collect money from anywhere in order to use it. It can develop in continents, which aren't developed, such as Africa.
ReplyDelete2) In order to expand the company the population and people need to know about it. So I would begin to publicize this new product in the newspapers and in TV so that the people begin to become familiar with this. In this manner there are more people, which want to buy the product because they know about it. Then you could expand it in he developed countries by creating an application for the smartphones, which most of the people have and usually always bring with them. Another manner that you could expand the company could be to create a small tablet, the size of a credit card to bring with you if you don’t have a smartphone and can’t transfer the money with it. This could also mean to widen the amount of people that can use this type of transfer. This tablet could connect itself with a satellite and so it doesn’t require telephonic lines to be used or wifi. In this manner also people in underdeveloped countries in Africa and Asia could use this type of technology. The opportunity that this idea has is that it would become very handy because people wouldn’t have to go around bringing with them their wallet they would have their money always with them in their cellphone or in their mini-tablet.
1) I don't think M-PESA has potential outsideof Kenya in places such as Italy because the banking industries are too active i influencing policies. The whole purpose of the M- PESA was to be able to get money in places where there weren't many banks, in developed countries there are banks conveniently placed in every city. However, a clone or something similar to M-PESA could be modified and prevail on cash/ credit
ReplyDelete2) If I were the CEO of M-PESA I would expand the company slowly, modifying it from country to country because people on Europe don't have the same necessities of people in Kenya. I would update or enlarge the company's servers because more people would be using the product if I expanded it the opportunities for growth are many and at the same time very slim. The only reason why it succeeded in Africa, or one of the many reasons is that it was unregulated for the past three years, in Europe or North America there would be immediate regulations and fees.
1) In my opinion M-PESA is a very interesting thing, because moving money with a single phone call could result very convenient because you do not have to move from your home nor go to the bank to take care of your money. Though I think that in a country like mine where I live, Italy, or another common country like Switzerland the banks have a huge monopoly over the people’s money and they wouldn’t allow M-PESA to introduce an innovation that would make the branches of the bank close and lose their work. M-PESA will have a lot of success in societies and cities that are not that technologically developed because in countries like Italy all the banks also offer an online banking which gives many banking possibilities to the client.
ReplyDelete2) If I were the CEO of M-PESA I would expand the bank by introducing different ways of moving the money because in many undeveloped countries there are no cell phones and no telephone lines so the M-PESA would only develop in countries with telephone lines which already have banks and would not give the possibility of M-PESA. So to expand the company would only have some possibilities if it installed telephone lines in undeveloped countries and gave them the possibility of having a phone because many can’t afford it.
1) I think that M-PESA is a very innovative idea and does hold promise in undeveloped/developing countries. People in countries where there aren’t many banks may need such a service in order to conveniently store their money. However in more developed countries M-PESA holds little promise. With banks and ATMs placed in nearly every neighborhood, programs like M-PESA are not needed. Also people may feel that the idea keeping their money on a cell phone is not as safe as compared to a bank. For example, here in Italy, cash and credit prevail and will most likely stay that way for some time to come.
ReplyDelete2) M-PESA however does hold potential to expand. If I were the CEO I would lower my interest rates below that of neighboring banks in order to attract more users. I would also adapt the functions of the company to provide the ability to spend the stored cash, as one would a credit card. By combining cash and credit/debit cards all into one application on a cellphone, which is always carried around, M-PESA would be much more appealing. Although M-PESA may never replace the worldwide system of banks it could expand its borders considerably into the slums of countries worldwide and provide a suitable alternate to those who cannot use banks.
1. M-PESA could probably would have a potential in undeveloped countries where the bamking system is not developed. In the western countires M-PESA would not be needed since banks and ATPs are very common in cities. Keeping the money in the bank is safer, in any case, banks today offer online services where money can me moved using a cell-phone or a computer.
ReplyDelete2 If i were the Chief executive officer of M-PESA, i would expand this service in all the undeveloped countires like inida, and in the developed countires, in collaboration with the banks i would create a similar service where people can use a cell-phone like a credit card and administate thier money kept in the bank.
1)Do you think M-PESA has potential outside of Kenya – would people use it in Italy or does credit/cash prevail?
ReplyDelete"M-PESA, a service that allows money to be sent and received using mobile, has now been adopted by 70% of the adult population and is a conduit for 25% of Kenya's GNP". I believe that unfortunately a service like M-PESA would have a potential, to some extent. The third-world countries, or the undeveloped countries, in my opinion, would more than likely to offer and accept this service, because of its simplicity and advantage in using a mobile-money. However, unfortunately in developed countries, mostly Easter Asian, European and American countries, and in this specific case, Italy would have a much lower percentage of accepting this kind of service due to the advanced, and modernized cities now-days. Because ATM machines and actual banks are greater in number and more advanced, I believe that the people living in those areas would not buy it, but rather go into the city, thanks to advanced technology and transportation. Since Kenya, or like other undeveloped countries lack of advanced technology and transportation, it is really difficult for the customer, or the people to have an account due to the few amount of resources to produce more banks.
Oscar Wilde:
“There is only one class in the community that thinks more about money than the rich, and that is the poor.”
2)If you were CEO of M-PESA, how would you expand the company and/or the idea? Meaning, what opportunities are there for growth?
If I were CEO of M-PESA, I would expand the company by first starting with the undeveloped countries. Within each country, in order to increase the use of the company, or the amount of demand, I would lower the prices, or interest, and also offer, as a sign of gratitude, a telephone line, thus hopefully guaranteeing the motivation in continuing on using communication as well as keeping the relationship between the customer and the company. I believe that once the demand will increase, because of the world-wide use in cellphone, I would start asking if the developed countries would be interested in accepting the offer, motivating them to aid the undeveloped countries, and companies such as the M-PESA.
1) I think that M-PESA could not be successful outside of Kenya, like here in Italy. In developed countries like in Italy, banks are everywhere so people are able to reach any bank anywhere very easily, not like in the less developed countries where banks are only in the main cities. In developed countries, problems similar to Mr.Shrivastow have a very low probability to happen because banks are easier to access, even online is available. So, if M-PESA tries going out of countries like Kenya, it should be first advice to improve it.
ReplyDelete2) If I were to expand this company, I would publicize it on the media, newspapers, and magazines. I would ask from the company to improve the service with better technology, something that is easier and faster. I would first expand in the less developed countries because that is where many people will start using due to the lack of the bank’s accessibility. And after it is improved, I would try to expand it overseas, even though the chances for it to be successful is low. Of course it has to be something that is to be improved easier and more comfortable to use.
ReplyDelete1. Although M-PESA is a very astute program which helps many people in transferring money simply using a mobile device, I do personally believe that it might not have potential outside of Kenya. This is because M-PESA is a service which helps people who live in places where there aren’t many banks, therefore one must simply own a mobile phone and can transfer money, as well as receive money, just as a bank would, in a way. However Outside of Kenya, in places such as Italy, for example, M-PESA might not have potential due to the fact that Italy is a developed country full of banks in every city, therefore people have much more access to banks compared to people living in Kenya which has a poor amount of banks. In a developed country, such as Italy, cash/credit would definitely prevail.
2. If I were CEO of M-PESA I would definitely expand the company across the globe. The entire idea of transferring and receiving money through simple devices such as mobile phones is a prosperous idea, however I believe that there are a few areas which should change. The only way to reach expansion is if it is successful in many other countries. Now the difference is that every country is different. Not every country has the same number of banks and the same necessities that other countries have. Therefore it will most likely be a long slow process which will occur country by country. I would study well each country I believe M-PESA has potential in and apply the general idea to these countries. However the pivotal part which would change is that in countries which are more developed than Kenya such as Italy, perhaps it would be much more useful for people to connect M-PESA with their banks and save them the trip of physically going to the bank. One could apply the idea of transferring and receiving money with their bank and decide when to transfer money and be notified when received. Each country is different therefore it won’t be the same for each country however the detail of how the system would work will be pliable and changed according to each country.
1)Do you think M-PESA has potential outside of Kenya – would people use it in Italy or does credit/cash prevail?
ReplyDeleteI don't think M-PESA has potential out side of Kenya, this is because M-PESA is not as useful as credit cards. M-PESA is very innovative and useful for developing country where institutions are insufficient, but it is just like a simple way of money through, so for developed country which are like EU that have been enriched institution, credit cards are more easier than it therefore M-PESA doesn't need to use in developed countries. From the different point of view, it is handy to pay only need mobile phone, the security has completely equipped, so it is effective service which helps people who live in places where there are not many banks. In EU and developed countries has banks everywhere, that means people don't have to use M-PESA if there banks everywhere.
2)If you were CEO of M-PESA, how would you expand the company and/or the idea? Meaning, what opportunities are there for growth?
If I were CEO, I will propose that possible to be finance by mobile phone. If it possible, users would increased and make profit, but like a fee and interest rate must be a few, because it doesn't include personal expenses.
1)Do you think M-PESA has potential outside of Kenya – would people use it in Italy or does credit/cash prevail?
ReplyDeleteI don’t think that M-PESA has potential outside of kenya, not in developed countries special like itlay, since itlay is a developed country, it got strong financial system , if M-PESA potential in italy it might affect people life but not that much, so it mean that if M-PESA potential in itlay people would use but not that much people will using.
2)If you were CEO of M-PESA, how would you expand the company and/or the idea? Meaning, what opportunities are there for growth
If I was CEO of M-PESA, If M-PESA want to expand they company, first I will cooperate with some strong mobil service to break the strong financial system from banker.
1) Personally I don't think that M-PESA would have any success in Italy because perhaps in a less developed country such as Kenya it would come in handy and it would help many people, while in a well developed country such as Italy the bank is too developed and it has many branches to many banks in many cities, and introduction of M-PESA would mean closing down many banks and losing many workers. also the whole purpose of the M-PESA is to work with places where banks weren't aren't very common. Also in Italy the banks offer an online banking helping the clients already. However, in Italy and in other developed countries there are many immigrants working for families, and these people probably do not have a computer to go online banks but have phones so in that point of view it might succeed.
ReplyDelete2) If I were to be the CEO of the M-PESA I would first make sure that my company is succeeding and probably wait 1 year. If it fails then I would introduce a new ways to move money since the people in Africa can't all afford to have a phone. If it succeeds then I would slowly expand into other countries probably still in Africa and avoid the countries which are already technologically advanced since the company would fail there.