A pioneering South African cellphone bank is changing the lives of South Africa’s “unbanked and underbankedâ€, tackling unemployment and leading the world’s emerging markets towards convenient, affordable banking.
South Africa has 16 million unbanked or “underbanked†citizens – a huge chunk of the nation that is largely excluded from meaningful and convenient access to economic participation. According to the FinMark Trust’s 2004 FinScope survey, the overwhelming majority of unbanked South Africans cite unemployment or a lack of sufficient money as the reason for not having a bank account. With no bank account, these South Africans are obliged to stash their cash in the proverbial cookie jar. Physical access to a bank is also a major issue, particularly for South Africa’s 8.1 million rural poor, only 5% of whom have a bank “nearbyâ€. Unsurprisingly, it takes the average South Africa 58 minutes to access a financial services point. A trip, or rather an expedition, to the bank becomes a costly experience for the very people that can afford it the least.
Enter Wizzit, a division of the South African Bank of Athens, who in April launched South Africa’s first cellphone bank aimed at providing the South African unbanked and underbanked population with a fully functional bank account that would eliminate the risks of carrying cash and would enable these marginalised masses to interact financially and participate in the economy. more…