Mobility boosts MEA banking

VALUE ADDED SERVICES

|
Image: By BiztechAfrica
Mobility boosts MEA banking

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.



Share the News

Get Daily Newsletter

Search News

comments powered by Disqus

MORE VALUE ADDED SERVICES NEWS

Uber Kenya, Sidian Bank launch Vehicle Solutions Programme

Uber and Sidian Bank are partnering to give driver-partners and investors access to vehicle financing for their own Uber-based businesses. Read More

Ericsson announces Emergency Wallet to support humanitarian response

Ericsson has committed to developing Ericsson Emergency Wallet, a mobile financial services solution, for deployment in the immediate aftermath of disaster or crises to support humanitarian organizations and affected populations. Read More

Hello Paisa clinches top African Fintech spot at Innotribe Start-up challenge

Low cost international money transfer company Hello Paisa was named the number one Fintech Company in Africa during the SWIFT African Regional Conference in Mauritius this week. Read More

Ghanaian diaspora embrace MTN Mobile Money when sending home with WorldRemit

MTN Mobile Money has become the fastest growing method of receiving WorldRemit international money transfers in Ghana. Read More

Ghana’s first mobile-based nano lending scheme launched

Dr. William Derban and Rosy Fynn Airtel is partnering with Fidelity Bank and Tiaxa will provide instant access to Nano loans up to GHC 200 to Airtel customers who qualify for the service through the Airtel Money platform. Read More

Airtel, Flickswitch launches first business SIM management service in Kenya

Airtel has partnered with Flickswitch International, a leading provider of self-service solutions for enterprises to launch an enterprise SIM management service in Kenya.  Read More

Airtel, Facebook to launch Free Basic Services in Nigeria

Airtel’s Segun Ogunsanya, with Ime Archibong and Markku Makelainen of Facebook Bharti Airtel Africa has announced that it has launched Free Basics in Nigeria in partnership with Facebook. Read More

Safaricom pays out Kshs.152m in Skiza Tunes royalties

Safaricom Limited has released Kshs.152 million to Collective Management Organisations (CMOs) and Premium Rate Service Providers (PRSPs), for payment to artistes whose music is sold through the company’s music platform – Skiza Tunes. Read More

Opera Mini introduces native ad blocker for Android users

Opera Mini has announced the launch of its built-in ad blocking system operating on its browser for Android.  Read More

SimbaPay announces single money transfer of up to $45,000 to Africa

SimbaPay says it is revolutionizing the remittance space through its official announcement of raising the single transaction limit to a whopping $45,000. This is substantially higher than the previous transaction limit of $3,000.   Read More

PRESS OFFICES

Sage EnterpriseSAP AfricaTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4AfrikaNetworks UnlimitedArbor Networks

FEATURED STORY

Government should encourage youths in ICT earlyGovernment should encourage youths in ICT early

Youths should be given more encouragement to develop their ICT skills, an 11-year-old app developer told Kokumo Goodie.

IN DEPTH

IBM Opens First Cloud Data Centre in South AfricaIBM Opens First Cloud Data Centre in South Africa

IBM is opening a new IBM Cloud Data Centre in Johannesburg, South Africa. The new cloud center is the result of a close collaboration with Gijima and Vodacom and is designed to support cloud adoption and customer demand across the continent.  

COMPANY NEWS

Resolving the data centre disconnect

The disconnect between virtualised applications and physical storage is costing businesses time and money.   

Separating the attack that matters from the noise

It has almost become the norm for a business to be compromised by a security attack. The emphasis today is thus more on how a business responds ...

MTN Business partners SMEasy to give entrepreneurs access to easy accounting solutions

MTN Business, in partnership with online accounting tool SMEasy, today announced the launch of an agile, fit for purpose business management and easy accounting solution for small ...