FNB steps into Lesotho

Johannesburg, 24 Apr 2009

First National Bank (FNB) has extended its cross-border prepaid airtime top-up service into Lesotho.

The bank says it wants to reach the estimated 150 million mobile phone subscribers in sub-Saharan Africa.

"Given the current growth predictions for the mobile phone industry, made by the GSM Association, FNB plans to maximise on these opportunities to expand its footprint within the continent," says Yolande van Wyk, head of expansion for FNB mobile and transact solutions.

An FNB statement says the cross-border prepaid airtime service allows South African FNB cellphone banking customers to buy prepaid airtime for recipients in other countries.

So far, cross-border international prepaid airtime purchases are only available in SA, and subscribers to the service can top-up other phones in Namibia and Lesotho.

Vodacom Lesotho commercial head Tsabiso Letsoela explains that according to an external survey, conducted in Lesotho, more than 37% of the interviewees had a family member working in SA.

Van Wyk adds that cross-border prepaid airtime top-ups are a cost-effective way of ensuring family members in outside countries can stay connected.

Cellphone banking grows

According to Berg Insight telecom analyst Marcus Persson, the uptake of mobile technology for banking services is set to hit 913 million users worldwide by 2014. The predictions show a compound annual growth rate of 89%.

Persson notes mobile phones are in an excellent position to become the primary digital channel for providers of banking and related financial services in emerging markets.

He adds that mobile technology will also play an important role in bringing financial services to people in the Middle East and Africa who do not use bank accounts.

"People who sign up for their first mobile subscription today will likely open their first bank account in the coming years and thus join the modern financial system."