Mobile Banking Services in Africa: The Emergence of Mobile Savings, Credit and Insurance
This case study examines several of the most pertinent examples of mobile banking in Africa: Tigo Wekeza in Tanzania, Safaricom M-Shwari in Kenya, Econet Wireless Ecocash Loans in Zimbabwe, Orange Emergency Credit, Airtel Mobile Insurance in Ghana, and Safaricom Kilimo Salama in Kenya.
Features and benefits
- Understand why mobile banking is popular, and in some cases necessary, in Africa.
- Examine the strategies used by some of Africa's major MNOs and banks to grow their mobile businesses
- Explore what impact regulation has on the field of mobile banking and insurance.
Your key questions answered
- The mobile savings market is driven by two distinct commercial models: the development of dedicated saving accounts, separated from the mobile wallet, and the distribution of interest based on money stored in the mobile wallet. In this second model, MNOs do not need to create specific partnerships with banks, and have full control of the operation.
- The mobile credit market also has two commercial models: some MNOs have created strong partnerships with financial institutions to offer credit facilities via their mobile money systems, while others provide extra airtime when customers are running out of credit.
- The mobile insurance market offers four commercial models, ranging from the traditional pay for premium and freemium models to the emergence of new commercial schemes. Some MNOs are now offering insurance coverage in return for a certain amount of monthly airtime top-up.
- What is mobile banking and why is it prevalent in Africa?
- Why are MNOs eager to grow this part of their business?
- Which companies are heavily engaged with mobile banking?
- How might the mobile banking market develop in the coming years?
- THE IMPORTANCE OF MOBILE MONEY IN AFRICA
- Low bank account penetration rate has spurred mobile money adoption in Africa
- Two main trends have been emerging over the last few years: the development of banking services and interoperability
- ROAD TOWARD THE PROVISION OF MOBILE BANKING SERVICES
- Mobile money services are very competitive in Africa, especially in southern and eastern areas
- As competition increases, MNOs are becoming more interested in mobile banking services
- The provision of banking services provides a competitive edge and allows MNOs to develop new revenue streams
- Mobile banking services present huge opportunities for mobile operators in Africa
- REGULATIONS AFFECT THE PROVISION OF MOBILE BANKING SERVICES
- Convergence between banks and operators well underway, should become common in the next few years
- MOBILE SAVINGS: OVERVIEW AND COMMERCIAL MODELS
- Two different commercial models drive the mobile savings market
- Tigo Wekeza in Tanzania
- Safaricom M-Shwari in Kenya
- MOBILE CREDIT: OVERVIEW AND COMMERCIAL MODELS
- MNOs have developed credit facilities via mobile money systems and airtime distribution
- Econet Wireless EcoCash loans in Zimbabwe
- Orange Money Emergency Credit (pan-Africa)
- MOBILE INSURANCE: OVERVIEW AND COMMERCIAL MODELS
- The emergence of insurance cover based on airtime top-up presents a new opportunity to drive average recharge per user
- Airtel Mobile Insurance in Ghana
- Safaricom Kilimo Salama in Kenya
- Mobile banking a vital aspect of financial inclusion, set to grow further if regulation allows
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