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‘‘ business income , or literacy level by offering a broad range of banking channels and instruments for payments .
Within the various markets , a number of market enablers and the interplay between them affect consumer uptake of different channels . These include regulatory requirements , existing card penetration and mobile penetration . for financial inclusion . For much of Africa ’ s rural population , the proximity of a banking service or payment channel determines their habits . For many , an agent will be their nearest financial service access channel , followed by PoS , ATM , Post Office and then branch . The more significant the service offering , the further away it is . This again emphasises the need for banks to offer an array of channels .
In countries like South Africa where traditional banking channels have an existing stronghold and card penetration is high , there are a low demand and uptake of digital wallet offerings , despite high mobile penetration .
In Nigeria , for example , slow adoption of regulatory and policy requirements stunted the mobile money market , while in Kenya , where the regulatory stance was more hands off , mobile money grew quickly and continues to rise .
In many countries , a change in government policies at the onset of the COVID-19 pandemic , when lockdowns were implemented and bank branches were closed , helped to spark a surge in digital banking , mobile money customers and transactions .
In Rwanda , the Central Bank introduced a variety of policy changes , including free transfers between bank accounts and mobile wallets , free mobile money transfers , zero merchant fees for mobile PoS contactless transactions and increased transfer limits . This resulted in a 450 % increase in person-to-person payments , a 200 % increase in the number of people using mobile payments and a 700 % increase in the weekly value of funds being spent digitally at merchants .
Access channels and reach are also essential considerations for banks , particularly as a driver
The fact that a large portion of Africa ’ s population is underbanked or unbanked , also underlines the need for a full range of services , from basic cash in , cash out and person-to-person transfers through to more enhanced services , including electronic payments such as debit orders , insurance offerings , access to credit and customer loyalty programmes .
As banks try to move their customers up this ladder , self-service is seen as the ideal bridge between physical and digital channels . As many banks consider branch rationalisation , these self-service options preserve a human element in the banking experience , which is still a priority for many customers .
ABSA Botswana has reaped the rewards of expanding its self-service offerings . The bank reported a 34 % increase in digital banking services usage as it rolled out a variety of digital financial services offerings , in keeping with customer appetite for self-service banking options . This includes the launch of Digital Corners in its banking halls where customers can utilise a variety of services , from forex and bill payments to card management and transfers .
Ultimately , the challenge for banks is to understand their customer base and their differing circumstances and needs and to deliver an array of services to ensure financial inclusion and ultimately economic prosperity for the continent . p
32 INTELLIGENTCIO AFRICA www . intelligentcio . com