Mobility boosts MEA banking
VALUE ADDED SERVICES| July 12, 2012, 4:08 p.m.
While financial institutions seek to develop alternative channels as a means to drive business efficiency and a better customer experience, an increase in consumer mobility has presented an attractive opportunity to financial institutions. According to a recent study by market research and consulting company IDC, the current penetration rate of banking services in the Middle East and Africa (MEA) is estimated at less than 35%.
SMS usage is growing faster than Web-based and downloadable applications. While the overall trend may be minimal, it continues to drive home the fact that SMS messages are far more appealing, since they can be used by consumers without purchasing an expensive data plan. This is particularly true in the MEA region, where penetration of lower-end mobile phones is high.
"Increased device capacity and faster Internet speeds have boosted the adoption of mobility among consumers, adding to the recent success of mobile banking initiatives. Most financial institutions across MEA have adopted some form of mobile technology, which will be pivotal in capturing a large share of the unbanked market and adding to the banking experience for existing customers," says Bijen Ramdas, a senior research analyst at IDC Financial Insights Middle East, Turkey, and Africa. "Regulation in the MEA mobile banking market is yet to reach an advanced state of maturity, which should be viewed as an opportunity to create sound security policies and develop trust in mobile banking technology."
Financial institutions looking to differentiate their mobile solutions may view item capture as a way to expedite everything from making deposits to completing loan applications. According to IDC, financial institutions should continue to embrace all mobile phone features to facilitate transactions and provide superior customer service.
Security authentication standards are stringent on mobile devices, with features such as two-factor authentication being the norm. A lack of consumer knowledge has been commonly cited as the reason for security breaches via mobile channels, rather than the actual hacking of mobile devices. In response to this, a strong trend has been an increase in focus on boosting consumer awareness and education levels, with many banks emphasizing security in their marketing strategies.
MORE VALUE ADDED SERVICES NEWS
Tigo Tanzania announces free WhatsAppTigo Tanzania has announced free WhatsApp services for its 10 million users. Read More
Lock screen content delivery platform launched in NigeriaSliide Airtime today announced Nigeria as the launch market for its Sliide Airtime service which provides users with a new and innovative way to access content from their mobiles and simultaneously earn free airtime. Read More
Glo collaborates with 15 banks to launch new recharge codeGlobacom has partnered with fifteen leading banks to launch a unified short code for customers to purchase Glo airtime at any time from banks in the partnership. Read More
Airtel Ghana launches ‘love month’ promoAirtel Ghana has announced plans to celebrate and reward its cherished customers in February, the ‘love month’, through a Valentine Day promotion dubbed “In The Name of Love”. Read More
Safaricom launches M-PESA statements serviceSafaricom has announced a new service that allow M-PESA customers to access monthly statements free of charge via email. Read More
Ghanaian market catches up with mobile financial servicesThe usage of mobile financial services in Ghana is increasing rapidly, according to a survey conducted by CGAP. Read More
Viber Spreads Good Vibes in Africa with the introduction of public chatsViber, one of the leading messaging and calling apps with more than 664 million unique users worldwide, has opened its latest social channel ‘Public Chats’ to partners in Africa and the Middle East. Read More
Bank starts year with new mobi appBancABC says their newly launched product, BancABCMobi, will allow more customers to use mobile banking solutions in this coming year and many more to come. Read More
Viber launches public chats in AfricaViber, a leading messaging and calling app with more than 664 million unique users worldwide, announced today that it has opened its latest social channel ‘Public Chats’ to partners in Africa and the Middle East. Read More
Low interest asset financing platform officially launched in NigeriaA new online platform launched this week allows employees in Nigeria to obtain voucher loans to pay for a range of goods and services. Read More
FEATURED STORYViber Spreads Good Vibes in Africa with the introduction of public chats
Viber, one of the leading messaging and calling apps with more than 664 million unique users worldwide, has opened its latest social channel ‘Public Chats’ to partners in Africa and the Middle East.
BEST READ NEWS
IN DEPTHPoised for greater heights – Roshi Motman, AfricaCom CEO of the Year Winner
Roshi Motman is not your average CEO. Since taking up the reins as the first female CEO of Tigo Ghana in 2014, she has led the Tigo brand through a remarkable transformation.