Mobile banking is taking off
in Africa, as evidenced by M-Pesa’s success in Kenya. Nedbank and
Vodacom, M-Pesa’s owner, have partnered in South Africa and are
hoping to attract the large unbanked segment in the country through
offering money transfers that will allow easy access to
funds
Nedbank, South Africa’s
fourth-largest bank, is to join forces with Vodacom, a South
African telecommunications giant, to develop M-Pesa’s mobile
banking product to the unbanked population.
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The initiative will allow unbanked
customers to transfer money from person to person using a mobile
phone.
The move comes as Vodacom, 40
percent owned by Vodafone, builds on the success of its initial
launch of M-Pesa in Kenya three years ago (see RBI 626). The firm has
extended the idea to Tanzania and Afghanistan and has attracted 10
million customers.
Saks Ntombela, managing executive
of Nedbank’s retail operations said the mobile product would
involve a “simple money transfer” that “offers easy access to
funds”, although few other details on the venture were
disclosed.
“We are particularly excited about
this offering being attractive to the previously unbanked
population who are not yet part of the formal banking system.
Nedbank strives to understand our customers’ needs and is committed
to ensure that what we deliver is a financial product that is easy
to use,” he added.
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By GlobalDataVodacom’s managing director,
Shameel Joosub said M-Pesa will “revolutionise the way South
Africans transfer, share and spend their money” adding that Nedbank
is the ideal partner for this venture.
“With their proven track record of
providing financial services to those who are traditionally unable
to afford it and their innovative approach to banking, we know they
will bring a new dimension to the project,” Joosub said.
He added that both Vodacom and
Nedbank are confident that M-Pesa will “change the lives” of
unbanked South Africans.
Nedbank’s domestic rivals Standard
Bank and First National Bank are also rolling out mobile banking
products, as part of a wider move to tap into the unbanked
population of emerging markets.
Standard Bank has joined forces with the Spar retail group to
provide access to instant money transfers for those living in more
rural areas of South Africa.
