Professional Documents
Culture Documents
• Population : 48 800 00
• Capital : Cape Town
• Largest city : Johannesburg
• Literacy : 82.5%
• GDP per capita : 6170 (US) dollar
• Currency : 1 rand
Middle Income Country
Macro economic level is high , Telecom networks are relatively well developed.
Plays a substantial role for all of Africa.
Only African country represented in G20.
Cape town, Port Elizabeth , Durban ,Pretoria and Johannesburg are 5 most developed
areas.
Unemployment , crime, corruption are a few challenges .
Mobile Banking in Brief
• Term used for performing balance checks, account transactions, payments.
• Two Categories
I. Additive- Provides existing customers with extra access channels
II. Transformational- Potential to attract previously unbanked segments by
using existing infrastructure and offering pricing and coverage that
matches targeted customers.
M-banking in South Africa
World bank estimates that 5 billion of 6,5 billion people do not have bank a/cs.
In SA , 16 million of country’s 48 million were unbanked.
Started ‘WIZZIT’ .
Service includes storing and sending cash ,paying rent , electricity bills.
SA’s financial landscape is dominated by 4 big financial instiutions
a) FNB b)Nedbank c) ABSA d) Standard bank
Wizzit
Strengths Weaknesses
• Pioneer / leader of the market / brand • Depends on the bank license
positioning • Depends on the network for collection of
• Integration of actors from the public and savings
private sectors (banks, ministries, • Requires literacy
multinational corporations) • Lack of control over their personal
• Major remittance platform (not only at the markets, quality information regarding the
national level) use of the product
• Platform based on mobile phones: • The lack of GSM coverage in certain
everybody uses a mobile phone remote areas (where the impact could be
• Association with the brand Maestro higher)
• Pay per use: there is no fixed charge • A large number of accounts not in use-are
• Works with all six mobile phone providers still trying to understand and work on the
• No money or information is contained in reasons
the device (safer for the customer) • Vs POS device: a little more of a delay to
the payment confirmation in a store.
Opportunities
• 13 million potential customers in South Africa Threats
who have no bank accounts • Banking and telecommunications can
• Exemption Regulation-17: flexible and fast launch their own platforms: they could
account opening
launch it at low cost, as an entry
• Wide and growing use of cell phones
strategy
• Advances in technology will result in cost
reduction and easier processes in the future • Threats to security: the information or
• Enormous potential for personnel (wizzkids) theft of money through piracy systems
and microentrepreneurs • Increasingly stringent regulations
• International recognition of the brand, might restrict the use of mobile
potential to expand to other countries phones for banking
• Act as agents of government benefit
payments, pensions, etc (high volume
• People in the informal economy may
accounts in developing countries, as well as a not wish to enter the ‘radar’ system for
great opportunity to impact the cost and fear of tax authorities
efficiency) • Risk of information managed by
• Can break into the market for microfinance
wizzkids
(and is doing so) in partnership with NGOs
Conclusions