Equity's persistent efforts have proved that there is black ink at the bottom of the rung. In the event, the customer has benefited as even proud Barclays has been compelled to slash its banking costs and accede to the forces of banking democratization, a path previously shunned and left as scraps for the likes of Equity.

 It is doubtable however that Barclays and Stanchart's cultures will be agreeable to the implementation of the business models that have seen the smaller banks succeed at this level.

The big banks undoubtedly have the financial resources to execute every strategy they may conjure to out-muscle their smaller competitors but they lack the human capital necessary for micro-finance banking. Previously these banks held sway in convenience service delivery technologies such as ATMs but with the emergence of Pesa-Point this advantage was lost. Now even members of SACCOs have access to ATM facilities and this at prices lower than they would be burdened with at the mainstream banks. This advantage was also set back by the alliance of the small banks in a consortium that led to the creation of their own payment exchange infrastructure

In terms of values, not as a 'moral ideal ' but in terms of organizational mores; Barclays and Standard value their big 'prestige' corporate customers so much that the optimization of their services is specifically targeted at this clientele. Their organizational cultures are prejudiced towards those who seek exclusive banking services unavailable to the ordinary mwananchi.

 As for processes; the cost-structures in the service models of the largest banks are oriented to the premium banking consumers with a floor of 10,000/- in their accounts plus deposits. Compared to the service delivery cost-model delivering the same service to a consumer who barely affords to maintain the 200/- deposit, it becomes clear that the Barclays model cannot be quickly tweaked. Customer service at the largest banks is innately poor with regard to the non-banked.

The revolution however is not restricted to this struggle between the traditional banks and those with micro-credit histories. Other players coming up in the country threaten the existence of even the versatile and innovative micro-finance firms like Equity. These organizations offer services beyond debt instruments. Examples include South Africa's Business Partners International and GroFin East Africa. These South-African enterprises that are targeting SME's that need capital as well as management expertise for grow. At the centre of their value-proposition is that in most Kenyans SMEs, capital access has been the not been the only impediment to success. Management expertise is a chronic problem where SMEs resulting in SMEs not reaching their growth potential. These firms offer to take equity positions in small firms while providing management expertise. This two in one package will compel the industry's main players to come up with similar products especially as these small businesses are much valued across the sector.

The battle lines are not just with the traditional banks or the South Africans but extend to within the world of the micro-credits itself. Family Finance has just last week had Central Bank approval to operate as a bank. These former micro-lenders come into the market with solid years of experience dealing with micro-borrowers and depositors. They also have solid earnings and corporate governance practices that were honed during the difficult period of their growth.

The battle for banking Kenyans, both individual consumers and businesses will be fought on the basis of some key value-propositions that banks will have to satisfy. The customer demands,

a. Help me save my money with minimal cost even when I need it

b. Help me grow and manage my money at the best price

c. Help me acquire an asset at the best price

d. Help me grow my business - as an entrepreneur

e. Help me fund my expansion- for the established business seeking growth, perhaps even a listing.

It is in this field that market-share in the banking sector will be decided. Even if they do not come out as market leaders, these institutions have done a sterling job for the Kenyan consumer and deserve credit for their continued efforts to democratize banking.