Mobile banking in South Africa poised to rise

Jul 14, 2010

The high proportion of mobile phone ownership in South Africa means banking via the devices is set to increase, Accenture South Africa has stated.

Managing Executive of Financial Services at the firm Simon Russell was quoted by I-Net Bridge as saying banks in the country are coming under increasing pressure to secure market share due to growing demands from consumers. "The winners … will be those banks with high customer loyalty delivered through greater customer centricity, convenience and low-cost processing. Mobile banking enables all three," he stated.

Figures from Accenture indicate over 60 per cent of South Africa's adult population currently own a mobile phone. And the firm said basic services such as peer-to-peer payments will evolve into more complex offerings, such as identification and authentication for accounts and point-of-sale transactions made using handsets.

Vodacom and Nedbank recently announced a new partnership that has given residents in South Africa the opportunity to access the M-Pesa mobile banking platform.