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

comments powered by Disqus

MORE VALUE ADDED SERVICES NEWS

Orange invests in Afrimarket cash-to-goods money transfer startup

Orange has contributed to a fund-raising program initiated by Afrimarket, the leader in cash-to-goods money transfers. Read More

Internet.org app now available in Ghana

Following the launch of the Internet.org app in Zambia and Kenya, Facebook is expanding its partnership with Airtel to bring the services to Ghana. Read More

TNM mobile money usage grows by 20%

Telekom Networks Malawi Limited (TNM) has announced that the number of customers using its mobile money service, called Mpamba meaning ‘capital’, has increased by 20 percent. Read More

Azimo launches instant money transfer to eight new countries in West Africa

Azimo, the online money transfer service, has announced that customers across Europe can now send money to recipients in Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal and Togo in West African CFA francs for instant cash pick-up. Read More

Airtel partners Cignifi and WSBI on mobile savings products

Brussels-based WSBI (World Savings and Retail Banking Institute) and Cignifi today announced an agreement to develop and test-market an innovative mobile savings product targeted at underserved and dormant savers.  Read More

WorldRemit, MTN in Mobile Money partnership

WorldRemit and MTN have signed a global partnership that will enable WorldRemit customers to send remittances instantly to MTN’s Mobile Money customers. Read More

Draw your own video game

Cartoon Network Games has partnered with Pixel Press on an innovative title encourages players to draw their own Adventure Time game levels. Read More

Tigo subscribers to enjoy 36m music tracks on their smartphones

Tigo Tanzania today announced the launch of Tigo Music through a partnership with Deezer, the international music streaming service that will provide Tanzanians with unlimited music experience. Read More

Tigo Rwanda launches 4G, TV streaming

Tigo Rwanda has officially launched its 4G internet service and iROKOtv video streaming partnership. Read More

MTN unveils 2015 BetterMe app to maximize internet usage

Henry Okoede, Bayo Adekanmbi and Ms. Funmi Onajide MTN Nigeria has launched its BetterMe campaign with the unveiling of the My2015BetterMe app and three 2015 BetterMe Bundle offerings for customers across all strata. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika

FEATURED STORY

UCC launches 2015 ACIA awardsUCC launches 2015 ACIA awards

Uganda has launched the fifth Annual Communications and Innovation Awards, which celebrate and foster ICT innovation and achievement.

IN DEPTH

Kenya’s digital TV battle hots up Kenya’s digital TV battle hots up

Kenya’s journey to Digital TV broadcasting took a new turn this week, when the Communication Authority of Kenya (CAK) accused three local media firms of intent to disrupt the process.

COMPANY NEWS

Albany CTG, Microsoft, collaborate on School of Government Program

The University at Albany’s Center for Technology in Government (CTG) has announced its collaboration with Microsoft Corporation to deliver executive level training to government leaders in Africa ...

VMware reports fourth quarter and full year 2014 results

VMware, the global leader in virtualisation and cloud infrastructure, has announced financial results for the fourth quarter and full year of 2014.