South Africa mobile banking market expected to grow

May 17, 2011

South Africa represents a "huge market" for the mobile banking industry and usage of such services in the country is likely to increase over the coming years.

This is according to Head of Innovation for TNS Research Surveys Neil Higgs, who made the comments to The New Age Business after a study by his firm revealed over half of consumers based in rapid growth economies welcome the idea of being able to use handsets to access banking services.

Currently, 28 per cent of South Africans are in favour of mobile banking, however Mr Higgs stated the figure is below average only because the infrastructure needed to provide mobile banking facilities has only recently been established.

"In the near future, there will be a fast influx of cheaper smartphones from countries such as China, which will be affordable to large number of South Africans," he was quoted as saying.

Standard Bank South Africa is one financial institution that is offering customers the ability to manage their accounts using their handsets.

The service also lets account holders purchase airtime for four of the country's major mobile networks.