FINANCIAL INCLUSION
African banks fail to clear mobile connectivity hurdle
Brian Richardson wonders why traditional banks aren’t offering desperately needed mobile solutions to potential customers
In Africa, banking the unbanked remains a pressing need. Roughly 700-million Africans are financially excluded – denied economic citizenship. Discussions on the issue raise the same question, time and again: why aren’t traditional banks offering mobile solutions to potential customers who desperately need them? The American Bankers Association claims it costs between $150 and $250 to open an individual bank account through traditional channels. Over more than a decade, around the world, it has been proven that alternative, disruptive technology such as mobile and branchless banking can reduce this cost by more than 90%, while still complying with local regulations. From 2011 to 2014, banks opened more than 700-million accounts for the previously unbanked, which goes largely unrecognised, yet so much more can and should be done. Another obstacle thwarting the growth of mobile banking in Africa is the exorbitant price of data. Handsets are status symbols at the lower end of the market...
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