To Make Accounts Stickier, African Bank Offers Cellphone Service

From American Banker –

“As U.S. bankers fear losing the primary relationships with their customers to technologically nimble outsiders, a South African bank is showing how financial institutions could conceivably return the favor.

First National Bank, the republic's third-largest bank by assets, began offering cellphone service to its direct-deposit accountholders last month. Customers who buy the bank-branded SIM cards for their phones can sign on to a single FNB site for their financial and mobile accounts. There they can pay their phone bills, buy data service packages, and activate international roaming. FNB resells the airtime from Cell C, a mobile operator.”

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What happens to SA banks during load shedding?

From Business Tech –

“Amid the prospect of regular load shedding in South Africa over the next few years, BusinessTech asked the country’s big banks how they’re set up to handle your finances when the lights to go out.

According to the power utility, it will take 20 to 30 months to work through its maintenance backlog; meanwhile the much-delayed Medupi and Kusile power projects are only set to be fully operational in 2018 and 2019, respectively.

The country’s power situation remains extremely volatile, and load-shedding looks likely to stay.

Worryingly, Eskom CEO Tshediso Matona has warned that one unexpected event at any of its power stations could potentially result in a total failure of the national electricity system. A failure which may take weeks to resolve.

In the event of such a nation-wide blackout, President Jacob Zuma and his cabinet will be taken to a secret location and soldiers will be deployed to protect the SABC and other key points.

SA mobile operators have already weighed in on how they would cope during a blackout – but what systems do South Africa’s banks have in place to keep their systems running?”

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Mobile money stalls in SA

From IT Web –

“What are the factors that will influence the uptake of mobile in South African banking?

The cost-to-income ratio is debatably one of the most significant ratios in any bank's yearly reports. It indicates how much of every rand earned is used towards the payment of the running of the bank, and therefore, how proficient the bank is in the process of creating value for the shareholders.

One aspect the South African banks are focusing on in their pursuit to improve the ratio is to moderate customer dependence on branches and to urge customers to start using cheaper self-service delivery channels, like the Internet, cellphones, automated teller machines, and mobile money. The banking industry is looking at digital banking services as a resource of reduced operating costs and as an area to use to hold on to customers.”

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IMF warns banks on risks in Africa

From Business Day -

“The rapid expansion of South African banks into the rest of Africa, as they chase growth, may increase risk to the financial sector, according to the International Monetary Fund (IMF).

Other African countries tend to have weak rules for money laundering and combating the financing of terrorism, raising the risk to SA, the IMF said after the completion of an extensive assessment of SA’s financial system earlier this year.

As a member of the Group of 20, SA agrees to this IMF Financial Sector Assessment Programme every five years. The assessment is intended to help countries identify risks to the financial system and implement policies to deal with financial shocks and contagion.”

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Why M-Pesa’s Kenya business model had to be altered for South Africa

From How We Made It In Africa

“It is frequently noted that business models that work in the US or European countries, might not work in Africa and should be adapted to the continent’s specific needs. The same can be said for adapting business models from one African country to another, as the ‘copy-and-paste’ method does not address different market dynamics. And there is no better example of this than the case of M-Pesa.”

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