Mobile phones are a key tool in reaching out to the 'unbanked' as everyone has a mobile phone.
So says Yolande Steyn, CEO at FNB's eWallet Solutions, who notes that mobile money, in its simplest form, is the ability to send money from one person to the other using a mobile phone.
"In South Africa, we have seen most of the banks launch a service whereby users can send money through a cellphone and withdraw it at an ATM," she says.
She notes that mobile phones have been the driving factor behind a lot of these services that FNB has been able to offer to its customers. The accessibility of smartphones is getting higher and the next generation of growth in the developing world and in Africa is the advent of the smartphone, she points out.
FNB recently revealed that over R10 billion has been transferred using its mobile money solution, eWallet, since introducing the platform locally in 2009.
"I don't think we realised how badly it was before the cellphone reached our shores. A lot of countries have a high penetration rate, distribution is good and it's not just urban areas, but also rural areas," she says.
"From an eWallet perspective, smartphones aren't necessary to the service provided. In fact, that is part of the success of eWallet as it can be used on any phone, from the oldest possible non-feature phone to the latest smartphone," she explains.
Steyn feels, however, South Africans are still not fully confident in using their mobile phones as a banking tool.
She notes that not everyone trusts doing financial transactions on their cellphone and it takes time for people to feel comfortable using new technology or trusting services, other than cash in hand.
Nevertheless, she says, what FNB has found is that although many people have heard of these services through advertising, the best way to learn about services like these is from friends and family.
This is the only way to build up the trust factor, she notes, adding that once users have passed this barrier, they gain the full benefit of using cellphone technology to make payments. The user has the option of added security through the use of PIN protection which makes these services safer than using cash, Steyn explains.
As a bank, FNB finds that integrating people's phones into the banking service is a great way of introducing the unbanked to some form of banking practice. Using mobile phones to provide these services address many existing barriers to financial services such as convenience, cost and accessibility, she says.
"For us as a bank, we can offer customers who would usually send cash via unsecured means such as in taxis, the opportunity to send money instantly to anyone in the country anytime and anywhere. This is a far safer and more convenient option for users," explains Steyn.
Beyond our borders, says Steyn, what is interesting is that similar services exist, but most of these services have been unveiled by mobile operators. Most of the bigger successes have been in east Africa.
The type of mobile transfer service differs from country to country in Africa - depending a lot on the type of banking system that is in place and what other financial services are in place, she concludes.
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