According to the UN Department of Economic and Social Affairs, there are 300 million reachable adults in Africa that currently have no access to formal financial services.
The greatest requirements of this unbanked market are “access to simple payments and real P2P solutions that will fuel greater economic growth and inclusion for the unbanked,” states Adrian Vermooten, head of mobile and digital channels at Absa.
Vermooten, together with a range of high-level speakers, will discuss the potential of mobile payment platforms in addressing the needs of Africa's unbanked market at the upcoming ITWeb Mobile Payments event. The event will take place at The Forum in Bryanston, Johannesburg, on 3 and 4 November.
Banking and payment solutions need to be geared towards basic banking services such as providing a safe place to store money; financial literacy, education and training; and access to credit, savings, and transactional capability, if the needs of the unbanked market are going to be met, states Brian Richardson, CEO of Wizzit.
Richardson will identify the key characteristics of the unbanked market in his keynote speech at the event. He will also discuss the technology and models used to develop mobile banking services that address the issues mentioned above.
Local banking trends seem to reflect a move towards mobile banking and payment solutions. Vermooten explains: “Increased customer awareness and usage of the mobile device as a commerce tool are creating an increased pull demand.
“Simultaneously, the scope and depth of services and functionality offered via the mobile is growing, and becoming more meaningful to the lifestyle requirements of the respective market segments,” he adds.
“In addition, there is a desire to find mechanisms which allow for our customers to interact in a more convenient way and at a lower cost than traditional channels,” says Vermooten. “Add to this the cost of handling cash, the development of our national public transport infrastructure, and the depth of penetration of mobile handsets, and you have a series of market dynamics that are supporting growth and development in the mobile banking space.”
Vermooten will explore the key motivating drivers for banking leadership in the mobile payments ecosystem in his session at the event. He will also debate the extent to which banks should co-operate with retailers and operators in creating a new financial channel.
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