Competition and mobile payments 'driving financial growth in Africa'
Competition among financial institutions across Africa is improving access to banking services for those living on the continent.Competition among financial institutions across Africa is improving access to banking services for those living on the continent.
TradeInvest noted that new companies entering the market are leading to an increase in the number of products available, as well as lowering charges.
Furthermore, microfinance solutions mean a great number of individuals are able to access services, especially through retail and mobile phone companies.
Indeed, the M-Pesa mobile money initiative, which was launched in Kenya by Safaricom, led to significant change as banks now have lower entry fees, thus allowing poorer individuals to open accounts.
A further 17 percent of Kenyans have access to financial services through the scheme.
At the time of the launch, chief executive officer at Safaricom Michael Joseph said his enterprise is "committed" to providing quality mobile phone services to Kenyans.
Additionally, many banks currently consider Africa to provide plenty of opportunities for growth and are therefore taking risks in the continent, banking and finance specialist and director at South Africa-based Werksmans Attorneys Richard Roothman stated.
Similarly, policy changes are providing financial institutions with a greater degree of flexibility and better opportunities to form partnerships with other enterprises, TradeInvest stated.