Banks need to get ahead of these challenges and retool to win in the next era. The top 7 african countries for mobile money infographics. Nigeria and ethiopia will record the fastest growth rates between now and then. Banking in subsaharan africa european investment bank. The enabling environment for mobile banking in africa. Helped by reform efforts kasekende 2010, the depth and coverage of financial systemsas measured by all the standard indicators of financial development, such as the ratios of. The study analyzed the mobile banking m banking system coverage for financial inclusion in tanzania, the case study of coast region at kibaha district council. Whether you need online support or want to join us, were here for you. Services allowing consumers to perform banking and payment operations on their mobile phones are surging in subsaharan africa, blazing a trail for the rest of the slowermoving world to follow. Factors that impact consumer adoption of mobile banking within the mcommerce domain. Financial inclusion and integration through mobile payments and transfer.
The truth about mobile banking in africa technology. Apr 11, 2019 with this platform, you can also make withdrawals at our atms without a debit card, move money to your mpesa or airtel money accounts, check your account balances, stop cheques, order cheque books, buy airtime for your or your friends phone, transfer funds to your beneficiary account, another boa account or to another bank account. Mar 06, 20 in the six years since kenyas mpesa brought bankingbyphone to africa, the service has grown from a novelty to a bona fide payment network. One mobile banking scheme in particular, mpesa in kenya, has shown phenomenal success, and has been a catalyst for.
The main objective of the study is to examine the determinants of mobile banking adoption as a communication in the banking industry with specific emphasis on the access bank ghana limited. African countries south of the sahara are poised to enjoy a surge in growth in their banking systems during this decade. Jan 24, 2014 mobile banking activity is highest in africa, led by nigeria, south africa and kenya which has the reputation for being the worlds mobile money pacesetter with mpesa. Factors that impact consumer adoption of mobile banking. African countries south of the sahara are poised to enjoy a surge in. Finally, a number of telcos have managed to develop a superior client experience early in the evolution of mobile financial services in africa.
Africa leading the way in adoption of mobile banking. Banking in the development and growth of the economy. A swift institute report, which specifically looks at kenya as a use case as well as subsaharan africa shows that mobile banking has aided kenyas financial rates drastically. Talking about mobile banking in south africa with brian richardson of wizzit reminds us that marketing a brand requires a consistent message. South africa already has one of the worlds highest mobile banking user rates, and this is set to accelerate, thanks to a 100% mobile phone penetration rate and an innovative banking sector that is pushing hard to reach a large, still unbanked segment of the countrys population. Vows to raise 27% of population with access to formal. Mobile money and digital financial inclusion in subsaharan africa. Mobile banking allows you to do almost everything check your balance, transfer between accounts, pay bills, view statements and even deposit checks.
Banks vie for a piece of africa s mobile banking market where most have a phone and few have bank accounts, telecom operators dominate fastgrowing business. Accept a transfer on the train, transfer money at the restaurant, pay employees from the cottage. This paper seeks to improve authors understanding of the current state of knowledge of. The truth about mobile banking in africa technology the. State of the mobile money industry in subsaharan africa gsma. In addition, telco is a much more concentrated industry than banking. Growth and innovation in african retail banking mckinsey. But the banking system that rests on the mobile services goes beyond that.
Determinants of mobile banking adoption in the ghanaian. Financial inclusion in africa african development bank. What africa can teach us about the future of banking. Afdb africa economic brief african development bank. Sep 04, 2017 the ability to send and receive money over the phone, without the need for an internet connection, revolutionised the way banking is conducted in africa, especially in eastern countries such as kenya. Lott december 2016 the views expressed in this paper are solely those of the author and not necessarily those of the federal reserve bank of atlanta or the federal reserve system. Evolving banking trends in subsaharan africa key features and challenges mauro mecagni. The banking sector in subsaharan africa has expanded steadily over the past decade.
Jul 07, 2016 a swift institute report, which specifically looks at kenya as a use case as well as subsaharan africa shows that mobile banking has aided kenyas financial rates drastically. Mobile network operators mnos have dominated mobile money services in africa for the past decade. Mobile banking mbanking is the fastest growing and most costeffective channel for delivering banking services. Page 4 the mno typically has a bigger customer base than that of a bank. The mobile economy subsaharan africa 2019 the mobile. Banks vie for a piece of africas mobile banking market where most have a phone and few have bank accounts, telecom operators dominate fastgrowing business. In subsaharan africa, eibs engagement is geared towards promoting local private sector development. Its easy to manage your finances with the national bank app.
Mobile banking is staging a true revolution in access to finance. Unbanked are predominantly rural poor people that live in a cashbased economy which is highly informal. Applications for mobile money to understand the potential application of mobile money in africa, it is useful to explore some examples. Once you have access to mobile deposit, you will be able to enter basic information regarding the deposit, take a photo of. The top five telcos in africa have 60 percent of all telco customers in africa, versus 22 percent for the top five banks in africa.
This publication on financial inclusion in africa is produced by the staff of the african development bank. Bill gates is 100% right about mobile banking in africa. Without a banking licence or a banking partner its illegal for a company to start a proper mobile banking company in. Africa is the global leader in mobile money, which has become an important component of africas financial services landscape. Africa leading the way in adoption of mobile banking ndtv. Aug 14, 2009 there has a lot written about mobile payments in africa, particularly since the success of mpesa in kenya this bbc report has the basics. However, brian and i branch into other areas, such as the impact of apartheid on financial inclusion. Mobile money agents have played a key role in driving customer adoption and enhancing financial inclusion in subsaharan africa. Mobile banking technology options an overview of the different mobile banking technology options, and their impact on the mobile banking market. In africa, the majority of the population has no access to banking services, with only 20% of african families having bank accounts2. Southern africa regional technical cash working group sartcwg. The explosion in mobile phone technology in africa saw the rapid development of mobile banking. Mshwari, a partnership between telecoms firm safaricom and the commercial bank of africa has developed the mobile banking service from merely being a mobile wallet to acting as a mobile bank. Mobile banking in south africa brian richardson of wizzit.
Today, as it faces new challenges, it has 30 million users in 10 countries and three continents. Pdf mapping mhealth mobile health and mobile penetrations in. Killian fox reports on how the power of telephony is forging a new enterprise culture, from banking to. Financial inclusion and integration through mobile. In the six years since kenyas mpesa brought bankingbyphone to africa, the service has grown from a novelty to a bona fide payment network. Objectives of the study were to analyze coverage of m banking for financial inclusion. The ability to send and receive money over the phone, without the need for an internet connection, revolutionised the way banking is conducted in. Subsaharan africa is a trailblazer in the use of mobile money to conduct. Boa asset management fiscal years 2009 to 20 boa in benin. What africa can teach us about the future of banking bloomberg.
The future of mobile banking in south africa fin24. South african banks go mobile home brand south africa. Mobile banking m banking is the fastest growing and most costeffective channel for delivering banking services. Once you have access to mobile deposit, you will be able to enter basic information regarding the deposit, take a photo of the check front and back and submit the check for deposit. Country characteristics for all 48 subsaharan africa countries by subregion continued. Complete the registration form opposite to download your free summary of banking in subsaharan africa to 2020. The bank is a key provider of both longterm financing and expertise, supporting investments that foster eu policy objectives, inside and outside the eu. Unique mobile subscribers by 2025, representing around half the population. In that regard, youll find the wizzit youtube video below similar in content to the audio podcast interview.
South africa cannot delay anymore and needs to jump on the bandwagon because on a larger scale, we are really talking about the critical subject of financial inclusion. With the possibility of working and living productively for another 20 years. Selected examples of dfis support to womenowned msmes in africa 126 maps map ii. The national bank app meets your personal banking needs, as well as the specific requirements of your business. This free service allows you to do more banking on the go. Africas mobile revolution alumniportal deutschland. Africa has more than 120 million active mobile money accounts, over.
Mobile payments growing in africa, india and the u. D v lo p m t b a n k african development bank group financial inclusion and integration through mobile payments and transfer proceedings of workshop on enhancing financial integration through. Consumer adoption of mobile banking has been slow when. Innovations built around the mobile phone have improved the populations inclusion in financial markets and have helped to work around the. Factors that impact consumer adoption of mobile banking within the m. Financial inclusion in africa world bank documents. Africas untapped business potential brookings institution. Half of africa s one billion population has a mobile phone and not just for talking. Saharan africa than in most other parts of the world. More recently, fintechs have established a solid footing in the market, and a number of banks are beginning to compete aggressively for the mobile banking customer. As described by choi and gutierrez 20 banks can partner with the mobile network operators. Bank of nigerias financial inclusion secretariat to identify areas that had high. Switch now to tmobile s 4g or 5g networks and discover the benefits of the tmobile.
The mobile phone has evolved from a communications tool to a device, on which much of africas economic aspirations rest. Feb 21, 2017 the mpesa mobile payment system was launched in kenya in 2007. Many countries in africa have poor retail banking network infrastructure especially in the rural areas. Potential mapping of financial account types to customer segments. The a newspaper vendor may make a mobile money transfer to his supplier for bulk stock, later collecting the goods at a. The purpose of this research is to investigate the perceived barriers to adoption of mobile banking among consumers, and to assess whether the usage of mbanking is constraint on the basis of different demographic characteristics such as age, income level, mobile. With this platform, you can also make withdrawals at our atms without a debit card, move money to your mpesa or airtel money accounts, check your account balances, stop cheques, order cheque books, buy airtime for your or your friends phone, transfer funds to your beneficiary account, another boa account or to another bank account. To break into the retail banking market, mobile banks resort to ever increasing innovative. Banking in subsaharan africa to 2020 the economist. The purpose of this research is to investigate the perceived barriers to adoption of mobile banking among consumers, and to assess whether the usage of m banking is constraint on the basis of different demographic characteristics such as age, income level, mobile phone usage experience and marital status. Without a banking licence or a banking partner its illegal for a company to start a proper mobile banking company in south africa, which means the industrys growth is limited. A research report submitted to the faculty of management, university of the witwatersrand, in partial fulfillment of the requirements for the degree of master of management in the field of ict policy and regulation. When you have eliminated the javascript, whatever remains must be an empty page. The scope of offered services may include facilities to.
Pros and cons of mobile banking renju chandran research scholar, dept. In the information technology it based era, mobile phone users consumers and business as well as social network are coming to realizing the value of mobile device and its utilization along with application in their daily business and. Electronic word of mouth ewom plays a crucial role in the success of ecommerce. For instance, in 2007, only about 30% of household in. As many as 30% of cell phone users in africa report that they participate in mobile banking a new report from the pew research center shows the transformative power of the cell phone in the worlds fastestgrowing market for mobile technology. Fast growing economies with limited formal banking services experience greater financial exclusion. Mobile banking activity is highest in africa, led by nigeria, south africa and kenya which has the reputation for being the worlds mobile money pacesetter with mpesa. Based on the failure of the mpesa in south africa, this article also attempted to determine why mobile money service systems are difficult to apply transnationally. Banking and mobile penetration rates in selected african countries 108. First national bank, south africa, and hsbc, uk 4 e. Satoz, a consulting firm, provided mapping services to draw the user sample and.
Mobile banking is certainly a growth industry across. Next came india, a vast country of 600 million mobile users where the company had partners and a presence. The mpesa mobile payment system was launched in kenya in 2007. Table 1 below provides an overview from the number of banks, mobile network. Mobile banking offers an opportunity to serve the unbanked. Mobile banking in south africa recently has undergone rapid growth, and research on it is on the increase. A bank, mobile network operator mno, a mobile banking technology vendor, and the consumer. Mobile banking stakeholders the delivery of a mobile banking service to a consumer involves the participation of four primary players.
Alberts college, ernakulam, kerala abstract mobile banking refers to provision of banking and financial services with the help of mobile telecommunication devices. Mobile subscribers and penetration rates in africa 108 figure vii. In south africa, the drc, zambia and kenya for instance, mobile phone banking is taking services to remote areas where conventional banks have been physically absent. Overview the topic of mobile banking is hot in africa kenya, sierra leone, south africa, ghana, nigeria, and all 21 mtn countries are moving deliberately, if not cautiously, to ensure their people are not left out kenyan govt. The south african journal of information management explores the latest developments and trends in information and knowledge management to offer research that can be used to further the application of sound information and knowledge management practice. Get your account information anytime, anywhere with mobile banking from first national bank. Banks vie for a piece of africas mobile banking market wsj. Innovations built around the mobile phone have improved the populations inclusion in financial markets and have helped to work around the continents infrastructure problems. Mobile telephony penetration in africa has increased exponentially from less than 2 million subscribers in 1998 to over 400 million in 2009. In most instances the mobile banking vendor has been the pioneer in shaping industry adoption. There has a lot written about mobile payments in africa, particularly since the success of mpesa in kenya this bbc report has the basics. Pdf background mobile health mhealth, a term used for.