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Mobile Money is the Key to Growing Africa's Banking Sector

The Growth of Mobile Money Today Growth in sub-Saharan Africa has driven mobile money adoption in recent times, according to statistics. Over the last decade, 39 out of 47 countries of sub-Saharan Africa have taken to the adoption of mobile money adoption. Millions of Africans make use fo the cell phones to evade complicated banking to manage their finance. Mobile Financial Services or MFS has gained a strong foothold across the cross-section of the continent as it is deemed as an efficient and safe means to perform the basic functions like cash transfers, paying of bills, paying of taxes, shopping purposes and the like. A region, prone to crisis, mobile money has eased the cash flow between family members across borders in the African continent. This has also been a significant cause to raise the MFS usage. Mobile money has also brought sports betting to a new light in the region. Promotional offers like Nairabet Affiliate Code that offer rewards and commissions when you refer the website to a friend is one of the many engagements that have an edge of mainstream banking.   The Other Advantages of Mobile Money It is a counter to a low bank branch penetration. The African subcontinent poses several challenges to banks regarding expensive models and high fees that cut off the low-income segment, preference for cash transactions over digital ones and a liability of cooperatives. The retail-banking in Africa stands at about 38% of the GDP, the global average being twice of it, as put forth by McKinsey, a management consulting firm. However, the active MFS users amount to about 100 million Africans with transactions of over $2 billion. Africa’s largest telecom operator, MTN has over 170 million customers, distribution networks like Safaricom have over 130,000 mobile money agents and are diffusing through the continent like mist. More and more people are adapting to the fuss-free digital banks than deciphering the banking jargons on black and white. The growth of Mobile Money customers in Africa has outpaced the rest of the world. How Does it Work Out for the Banks? With more than 58% of the African adults having mobile money accounts, the number of registered mobile money accounts was 277 million towards the end of 2016. The statistics testify that there is a continuous shift towards mobile money transactions, which in Esat Africa alone was $45.8 billion, about 32% of the total GDP. In Zimbabwe, 45% of the GDP is transacted through mobile financial services The prevalence of non-bank organisations providing MFS in the region has led the government to strategise the inclusion of the society at all financial levels. Banking heads are looking forward to a cooperation with the telecom to establish a mutually beneficial industry based on Africa’s choice of mobile money.]]>

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