Thread by @kavsmaina

In 1962, a year before Kenya gained independence a young man named James Mwangi was born in Nyagatugu, Kangema. A settlement in Muranga County to peasant farmers, Mwangi’s parents had no formal education & lived apart from what he calls the ‘monetary society’.
#ThePeoplesBanker

His Papa was killed during the Emergency. He and six siblings were raised by their single Maitu Grace Mwangi.
Uneducated herself, Mwangi’s mother, an anchor throughout his life, was adamant & uncompromising about school. #ThePeoplesBanker

To achieve this dream, Grace imposed a strict code of discipline in her household whilst encouraging an entrepreneurial fervor in her children. The family sold milk, tea, charcoal, fruits to stay afloat. It was an important training ground for the young Mwangi.
#ThePeoplesBanker

Mwangi's instinct for commerce came from vending to eke out a living, to pay school fees and feed the family. He realized early in life that there is no wealth without work! Entrepreneurship means folding up your sleeves & working. Profit is the reward.
#ThePeoplesBanker

His was a simple life. As a boy, he grazed cows and goats, & hunted wild animals like rabbits. There was no distinction of rich or poor, all were equals. You were brought up in a community and all work was communal. This was his foundation.
#ThePeoplesBanker

Unbeknown to him, it was this deeply communal atmosphere that inspired the business that Mwangi built. As a boy, he had never met anyone who owned a bank account or even fathomed being served by any which, at the time, only catered to a privileged few.
#ThePeoplesBanker

James was the real Kanyoi ( a brilliant chappy) and excelled through school despite his circumstances and even received a Government scholarship. After university, Mwangi began his career as an auditor with Ernst & Young in Nairobi. #ThePeoplesBanker

Four years later, he moved to the now-defunct Trade Bank Group. Then an innovative financial services firm, founded in 1985, it quickly gained prominence as Kenya’s first attempt at mass-market banking. #ThePeoplesBanker

In the background, Kenya was forging a new national identity, most banks were hesitant to provide its vast population with even the most basic financial services. As an answer, indigenous building societies took root.
#ThePeoplesBanker

However, while buffeted by good intention, these fledgling financial institutions were poorly run, leading many to ruin. Founded in 1984, Equity did not start its commercial life as a bank but as a mutual society trading as the Equity Building Society (EBS).
#ThePeoplesBanker

Mwangi was on the Up and Up, Over a brief career at the bank, he climbed the ranks from teller to Group Financial Controller. Meanwhile, EBS was spiraling. The founder & Chairman Peter Munga, had a Eureka moment!

#ThePeoplesBanker

He had known Mwangi as a boy and was convinced that the young banker was his only hope. He had a reputation for being a sharp young man who was good at analytics and bold decision-making. By then, Equity had been declared insolvent and was facing dissolution. #ThePeoplesBanker

Munga’s confidence was not misplaced. 31-year-old Mwangi left his job at Trade Bank to take on a role as Director of Strategy at the stagnating society. In 1993, he walked away from a promising career at one of Kenya’s largest banks, to join the EBS.
#ThePeoplesBanker

Thirty years later he graces the cover of FORBES Magazine as the #ThePeoplesBanker

...and what a journey it has been!!

At the time, in a seemingly fool-hardy move, the young banker agreed to take on mounting debt, unpaid salaries, dwindling membership, and declining morale at Equity. He even remortgaged his own house to inject some desperately needed cash into the business.
#ThePeoplesBanker

He had a vision, one that he was determined to fulfill and he was ready to do the work to bring his dream to fruition. He had been given a carte blanche to transform the business and with no option of turning back, Mwangi was determined to meet his mandate.
#ThePeoplesBanker

Mwangi’s reforms were more an attempt at reinvention rather than resuscitation. He began by re-training the organization’s remaining staff in the ethos that would later come to define them – customer care.
#ThePeoplesBanker

In the words of Dr. Mwangi!
"We didn’t have money… the currency that created Equity was a passion to please the customer."

Can somebady say AMEN!

This is the customer service mantra we all need to inculcate!

#ThePeoplesBanker

In 1997, Equity had cleared its debts, encouraging staff & customers to begin purchasing shares in the company.
Equity’s client accounts grew exponentially from 32,000, in 1997, to 482,000 by 2005.
WEWE NI MEMBER? Umenunua shares?
#ThePeoplesBanker

This exemplary track record allowed Mwangi to raise capital from the (EU), (IFC), and other institutional lenders to introduce computing technology to the building society, paving way for his ambitious expansion plans.
#ThePeoplesBanker

Steady growth made the building society’s transition to Equity Bank, in August 2004, possible. Two years later, the bank listed on the Nairobi Securities Exchange (NSE). Within five years, the bank was operating subsidiaries in E. Africa.
#ThePeoplesBanker

By 2019, the bank had transformed becoming Equity Group Holdings, with customers across E.Africa.
In 2020, three decades after Mwangi made his debut, the Equity Group boasted a market capitalization of KES128.1 billion (approx. $1.3 billion) 😅
#ThePeoplesBanker

Equity’s tremendous transformation is due, in large part, to what is now known as ‘The Mwangi Model’. Thanks to this ground-breaking framework, Mwangi has been able to introduce a bulk of East Africa’s low-income population to the financial services sector.
#ThePeoplesBanker

Watu wa mattress were finally able to get bank accounts without a minimum operating balance, and access to business boosting loans. . It is a model of inclusion that thrives on high volumes, low margins, and mass-market appeal. He removed barriers to banking!

#ThePeoplesBanker

Dagitari had a singular mind to build a bank for his mother whom he saw bury savings under her mattress. The Mwangi Model Model he devised has been recognized & analyzed in case studies at Stanford, Columbia, Harvard, and the Lagos Business School. 💪💪
#ThePeoplesBanker

A key feature of the ‘Mwangi Model’ is its resilience which the current pandemic is putting to the test. In June, Equity saw its acquisition plans, through the highly-anticipated Altas Mara deal, in Rwanda, Tanzania, Mozambique, and Zambia, halted.
#ThePeoplesBanker

Instead, Mwangi announced that the Group was doubling down & would take a more conservative approach to see through the crisis. In an unprecedented move, shareholder dividend payments were also delayed to safeguard liquidity reserves. Sometimes one has to make unpopular decisions

Dr. Mwangi; " Covid-19 has been a turning point. We have analysed over 1,200 years of data, starting with the bubonic plague, to understand this pandemic. The only way we can survive this is if our business is agile & resilient enough to navigate these times.”
#ThePeoplesBanker

Dr. Mwangi, is a captivating figure. His trademark smile and down-to-earth demeanor set him apart from the traditional banker. "Seeing a smile in people’s lives still makes me happy. Thirty years later, it’s been a journey of changing one life at a time.”
#ThePeoplesBanker

Dagitari Mwangi isn’t your run-of-the-mill chief executive. His journey to the C-suite has been fueled by sheer resolve, belligerent bravado, & an uncanny concern for his customers. Sisi wengi ni Member!

Thank you for your model & thank you for your service.
#ThePeoplesBanker

#ThePeoplesBanker has some advice for entrepreneurs during these unprecedented pandemic times.
1. Stick and focus on purpose, use essence to filter dos and don’ts.
2. Protect the public license. Society will never forget the side or position you took when you had the chance.

3. Support the supply and value chain and recover. Bend backwards to accommodate your business’ unusual circumstances.
4. Adopt a shared prosperity model using social and impact investing.
5. . Adapt to ‘the new normal’. Covid-19 might have irreversibly changed your world.

6. Be part of the solution to our shared global challenges in humanity, health, and livelihoods. Don’t run away from the reality your customers are facing.
7. . Focus on the opportunities of the fourth industrial revolution like digitization, big data, technology and innovation.

8. Adopt an appropriate leadership style for these uncertain times. Provide visibility, hope and answers to concerns and when carrying your followers along with you.
9. Preserve cash, liquidity, and capital reserves for the long haul.
10. It is all about people.

Fin.