The Future of African Banking is Smart

By Iqpc Middle East, PRNE
Wednesday, March 30, 2011

Electronic Banking Systems are Opening Doors for Banks to Extend Their Service Reach and Accelerating Economic Growth for Unbanked African Markets

JOHANNESBURG, March 31, 2011 - Africa's financial services sector is being revitalised by employment of
before unused banking technologies. In recent research on the drivers of
African banking, conducted by IQPC, industry stakeholder quotes revealed that
"Wireless and smartcard technologies are enabling the development of services
in previously un-banked areas, helping to stimulate local economies and
encouraging investment and tourist spend." Similarly, the providers of such
banking applications showed confidence in the continent: "There is great
potential for growth [in Africa], utilising new electronic banking systems,
without having to significantly upgrade the existing infrastructure." Chip
technology was recognised as a major enabler in risk management and wireless
capability as the main facilitator in improving accessibility to banking

South Africa's unbanked population is estimated at more than 10-million
people. According to FNB chief executive officer, Lorato Boakgomo-Ntakhwana,
in 2009, just over 50% of Botswana did not have bank accounts. In Uganda the
banking population is at a low 38% having a bank account and only 7% using
more than one banking product. The challenges that banks in Africa contend
with are often unique and burdened with inhibiting factors of poor
infrastructure and an often low ratio of branch to population. Now, banking
institutions are turning this challenge into opportunity by developing new
focussed business models that for this unbanked sector.

One of the strategies is to implement branchless banking applications
such as mobile banking. Mobile operators have broken into this market through
the implementation of mobile money. In Kenya, where a decade ago only a mere
15,000 handsets were in use, a number which has risen to 15 million, the
opportunity for accessibility is undeniable. To eliminate issues of poor
accessibility to money transaction services for Africans, technology based
solutions will be introduced in the form of strategies and products at
Banking Technology Africa Summit, taking place 20 -23 June 2011 in
Johannesburg, Sandton, South Africa. This event will present innovative
applications that are commonly used in Europe and the U.S to curb costs,
drive revenue, simplify operational processes and secure a healthy share of
the consumer market.

For information about Banking Technology Africa conference taking place
20 -23 June 2011 at Radisson Blu Gautrain in Sandton, Johannesburg, South
please visit alternatively
please contact: Katia Andrejev, Marketing Manager, IQPC at or call; +971-4-446-2748.

Please contact: Katia Andrejev, Marketing Manager, IQPC at katia.andrejev at or call; +971-4-446-2748.

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