Kinaad insider in UBA Cameroon confirmed a general concern to the recent changes that have been going on within Mobile Money Corporation. And not only Mobile Money. Orange Money as well.
Both telecom companies are exploiting the gap in retail banking in the country.
Something M-PESA has done very well.
6 Strong Changes Preparing Mobile Money Corporation Against Retail Banking
On the 14th of July 2020, a legal notice introduced several changes to Mobile Money Corporation.
1. Mobile Money Corporation Increased Share Capital To FCFA 850 Million.
Mobile Money Corporation has increased its share capital from FCFA 50 million to FCFA 850 million by adding FCFA 800 million in cash. Way above COBAC’s R-2019/02 Regulation of FCFA 500 million.
Before you start mewling, did you also know that Orange Money Cameroon (OMC), has a share capital of FCFA 1.2 billion.
As both companies comply to COBAC’s regulations, they are officially Payment Service Providers (PSPs).
2. Mobile Money Corporation has been Re-organising Its Board.
That same said legal notice has withdrawn with immediate effect MTN Cameroon, MTN International, and Broadband Telecom Ltd from the board of directors of Mobile Money Corporation.
Removing telecom associations to the company. Practically what Orange has done with Orange Bank Africa presently in Côte d’Ivoire.
3. BOSS Hendrik Kasteel, “Former” CEO MTN Cameroon Joins Mobile Money Corporation Board.
Was it just COVID-19 that delayed his departure? Well, even though his LinkedIn profile says he has joined Orange Maroc, it is said that this same legal notice appointed him to the Mobile Money Corporation board.
4. And Now… Introducing FAMOUS Banker Ebenezer Essoka to the Mobile Money Corporation Board.
That same notice equally appointed Ebenezer Essoka to the Mobile Money Corporation board.
But who is he? Why is he the one to disrupt retail banking in Cameroon?
Ebby is the Executive Chairman of IBURU, an advisory firm focused on Economic Development across Sub-Saharan Africa.
He retired from Standard Chartered Bank, as Vice Chairman, Africa in 2015 after 30+ years in senior leadership.
He was the first African to be appointed CEO of a Standard Chartered Bank subsidiary after over 135 years of the Group’s presence in Africa.
Read the rest on his LinkedIn profile.
5. WELL-KNOWN Alain Claude Nono is now Managing Director.
Alain Claude is second by Joseph Tsuo Mua Akwa.
6. Unvailling Micro-credit
Through MoMoKash, you can apply for small loans or receive interest on the amount of money you have in your Mobile Money account.
How cool is that?
Even though this is good news for Mobile Money customers & micro-finance institutions, retail banking is not taking it as good news.
“While non-bank mobile financial services can fundamentally reshape the financial sector in Cameroon, as they have clearly done in Kenya, mobile services need not represent an existential threat to the traditional banking industry. In fact, the reach of models such as M-PESA can enable and even incentivize innovation in the banking sector, including a shift in focus to increasingly lower-income consumers. Kenya’s experience shows, above all, that retail banks can thrive in the face of mobile money, as long as they are prepared to adapt…”
Kinaad Insider at UBA Cameroon.