Mobility boosts MEA banking
VALUE ADDED SERVICESBy BiztechAfrica - 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
Safaricom marks 7 years of M-PESASafaricom is marking the 7th anniversary of the launch of its successful mobile money transfer service, M-PESA. Read More
SA’s Net1 launches MVC solution in USSouth African-based Net1 Mobile Solutions, a business unit of Net 1 UEPS Technologies, has launched its Mobile Virtual Card (MVC) technology with selected partner, Pay in Private, in the United States. Read More
NSE introduces enhanced notification system via mobile, emailThe Nigerian Stock Exchange has enhanced its notification system, with alerts to be sent to investors by phone or email each time they buy or sell a security. Read More
Digital music worth $9bn this yearMahindra Comviva and Ovum Consulting predict that India, Africa, Latin America and South East Asia will be exceptional markets for digital music growth. Read More
MasterCard, Etisalat celebrate award-winning partnershipEtisalat Group, the leading telecoms operator in the Middle East, Asia and Africa, has celebrated an enduring partnership with MasterCard that has brought award-winning technologies to the market. Read More
Airtel Kenya to empower farmers via mobileAirtel Kenya has established a Farmer's Information System to provide real-time information to Kenyan farmers through its mobile network in the country. Read More
MTN, ECOBANK expand cardless mobile money ATM servicesGhana's leading telecommunications provider, MTN and Ecobank, The Pan African Bank, have partnered to extend cardless ATM services to Ecobank ATMs across Ghana. Read More
Annual wagers on mobile casinos, poker to exceed $60bn in 2018A new report from Juniper Research has found that annual wagers via mobile handsets and tablets on casino-type gambling and poker games are expected to reach $62 billion globally by 2018. Read More
MoboFree gets growth funding from eVentures Africa FundNigeria’s MoboFree has raised significant growth funding from Netherlands based eVentures Africa Fund (eVA Fund) in order to expand its local presence in Lagos and Accra, start new offices in East Africa. Read More
CfC Stanbic unveils M-Pesa payments for businessesKenyan banks are reported to be scrambling to leverage Safaricom’s mobile banking platform, M-PESA, to attract more customers. Read More
FEATURED STORYMACRA demystifies spectrum management
Malawi's regulator explains the issues around spectrum allocation. Gregory Gondwe reports.
BEST READ NEWS
IN DEPTHYouthConnekt launches Mobile Apps for Human Development Challenge in Rwanda
Rwanda’s Ministry of Youth and ICT and the UNDP, in close collaboration with Motorola Solutions, will power a Mobile App Challenge that will be implemented by YouthConnekt.