Delivering on financial inclusion, supporting financial stability about the report at its fourth edition, this report provides an analysis of recent development in the banking african. With an 82% mobile account penetration, ssa has the highest penetration of mobile banking across developing markets. North african banks are much deeper, well penetrated, and efficient but they do not generally surpass the subregions in terms of innovation and competitiveness. Simon brinckmann is an associate director with pwc south africa, based in johannesburg. Ebanking services features, challenges and benefits 51 2. In 20, when we published our first edition of the africa banking industry customer satisfaction survey, our report found that retail customers were most concerned about the financial stability of their banks. Customer expectations, technological capabilities, regulatory requirements, demographics and economics are together creating an imperative to change.
More generally, an agent is any thirdparty acting on behalf of a financial institution or a non bank institution to deal directly with customers, under contractual agreement. The challenges facing the implementation of agency banking in kenya a case study of kcb. Each of these four pillars is fundamental to success in the. A ca e cc b chief economist complex aeb volume 6 issue 5 2015 outline 1introduction p. Recent trends and digital financial inclusion about the report at its third edition, this report provides an analysis of recent development in the ssa banking sector. The south african banking sector is increasingly moving towards a marketplace without boundaries, shaped by the fastapproaching entry of new digital players challenging the status quo and driving unprecedented levels of innovation. Afdb africa economic brief african development bank. Powerful forces are reshaping the banking industry. Banking in subsaharan africa 4 nigeria nigeria consolidated its banking system in 2005 from 89 banks to 24. This framework is the digitalfirst platform, supported by four pillars omnichannel banking, smart banking, modular banking and open banking. The south african banking sector is highly competitive and sharing their. Ebanking conceptual framework remote banking, considered representative for the new economy, consists of electronic transactions between customers and their bank. The most effective way to understand and bring the organization from traditional banking to digital banking is omnichan nel approach. The challenges facing the implementation of agency banking in.
Pdf fast growing economies with limited formal banking services experience greater financial exclusion and transaction curtailment, but mobile. The impact of the 4th industrial revolution on the south. This study on the impact of ebanking on commercial banking operations in cameroon. The mediating role of consumer readiness article pdf available october 2017 with 772 reads how we measure reads. Africa, the expansion of major banks african footprint, like standard bank group operating in a number of countries as stanbic bank and barclays africa, and the availability of advanced technology and infrastructure in certain african countries are all shaping the. Africas retailbanking penetration stands at just 38 percent of gdp, which is half the global average for emerging markets. However, the banking sector in africa is much shallower and less penetrated than those in other major regions of the world.
For instance, in 2007, only about 30% of household in. With innovation and expansion on the minds of bank ceos, panafrican strategies are being constructed. Market structure and competition in the south african banking. Here, agents are contracted by a bank bank agents to provide services on their behalf, most importantly cashin and cashout. Saharan africa remains the region with the greatest potential for the adoption of digital financial services dfs. Selected panafrican banking groups, june 2011 20 tbles a table 1. Assessing and strengthening banking supervision is important given the important role of supervision in.
This was followed by rapid growth in banking assets in a high oil price environment, which led to a stock market bubble and a sharp increase in nonperforming loans npls. Our projected growth for africa banking revenue pools of 8. Africa is also the global banking industrys secondmost profitable region. Financial depth the banking sector in subsaharan africa has expanded steadily over the past decade. Sme bankingafrica a unique opportunity for the continent. African countries south of the sahara are poised to enjoy a surge in. Also banks in africa are well supervised as well as those in other developing countries with competition and entry regulations on par with those in other regions. African retail bankings next growth frontier mckinsey. Investec is a strong fifth, but it has a wealthier client base and focuses on both south africa and the uk. The banking sector in subsaharan africa has expanded steadily over the past decade. The banking association south africa basa advances the interests of the industry with its regulators, legislators and stakeholders, to make banking sustainable, profitable and better able contribute to the social and economic development and transformation of the country.
These include south africa s standard bank, which operates in 18 countries in africa. Africa is hardly the first region one would think of when it comes to private banking. That is, if one has not been following economic developments on the continent. Electronic banking, more commonly known as ebanking, is the newest delivery channel for banking services. The main allure of africas banking market is that it is potentially vast and virtually untapped. In undertaking the research for sustainability banking in to initiate a dialogue around the london principles, with africa, five countries were chosen as focal case studies.
From guaranty trust bank ghana, leopold armah, assistant general manager, indicates that the introduction of digital banking has helped to keep the banks on their toes. Standard chartered bank has been operating in africa for more than 150 years and is present in 15 african countries and active in 36 countries across the. The structure conduct performance hypothesis would suggest that competition in the sector would therefore be very low. The challenges facing the implementation of agency banking. Today, as it faces new challenges, it has 30 million users in 10 countries and three continents. Digital disruption in the south african banking sector. As it has done in mobile services or is currently doing in banking services, africa could even leapfrog mature markets in this respect. Jeanphilippe stijns and adeline pelletier, with box 1. Africa shall and is actually in the process of innovating large and fast with regard to infrastructure finance. Fast forward to 2016 and the rules of the game have. Selected pan african banking groups, june 2011 20 tbles a table 1.
In south africa, the drc, zambia and kenya for instance, mobile phone banking is taking services to remote areas where conventional banks have been physically absent. Pdf mobile banking in south africa melchizedek theo. Simon is an associate director in pwcs banking practice. Delivering on financial inclusion, supporting financial. Although competition is heightening and regulation is tightening, there is still much room to grow. Banking association south africa basa staff will be working remotely during the lockdown. Vows to raise 27% of population with access to formal finance to 65% within decade. Overview the topic of mobile banking is hot in africa kenya, sierra leone, south africa, ghana, nigeria, and all 21 mtn countries are moving deliberately, if not cautiously, to ensure their people are not left out kenyan govt. A ca e cc b building today, a better africa tomorrow. Segmentation the report segments banking institutions into three key groupings in the case of kenya, uganda, and rwanda, and four in the case of tanzania. Its markets are fast growing and nearly twice as profitable as the global average.
West africa and its banking institutions were controlled by the british until 1957. Ecobank, a togobased panafrican bank with businesses in 32 countries. In africa, the majority of the population has no access to banking services, with only 20% of african families having bank accounts2. As the national association of domestic and international banks. Jared osoro, director, kenya bankers association centre for. Lack of access is particularly acute in rural areas. Omnichannel is a multichannel approach to customer service where all the channels are tightly integrated. Stop the spread of fake news and stay up to date with official information from the south african government on the covid19 portal at sacoronavirus. Country and financial sector reports prepared by the world bank represent a key source of information on the banking sector in subsaharan african countries. Banking in subsaharan africa to 2020 the economist. Banking in subsaharan africa european investment bank. Complete the registration form opposite to download your free summary of banking in subsaharan africa to 2020.
Backed by the londonrun african banking corporation, the bank of british west africa was opened in 1894. African banks are well capitalized and overliquid, but lend less to the private sector than banks in nonafrican developing countries. Financing infrastructure in africa a landscape of evolution. Feb 21, 2017 the mpesa mobile payment system was launched in kenya in 2007. Africas banking sector provides a refreshing contrast. Much has changed across africas banking industry in the past three years. Nedbank doesnt have a real investment banking business, but standard bank and firstrand, through its rmb unit, have solid ib divisions.
The mpesa mobile payment system was launched in kenya in 2007. Digital transformation in banking the future of banking. Jorge camarate is a partner with pwc south africa, based in johannesburg. African countries south of the sahara are poised to enjoy a surge in growth in their banking systems during this decade. The first banking institutions were set up in british west africa in the late 19th century. Banks need to get ahead of these challenges and retool to win in the next era. Digital or electronic banking e banking is believed to be providing an efficient and more reliable platform for banks and their customers to transact business with ease. Subsaharan africa ssa has displayed particular success in addressing these limitations and in the use of mobile money. Internet banking or ebanking is an electronic payment system that enables customers of a bank to conduct. Market structure and competition in the south african. Helped by reform efforts kasekende 2010, the depth and coverage of financial systemsas measured by all the standard indicators of financial development, such as the ratios of. Fast forward to 2016 and the rules of the game have changed.
Africa, the expansion of major banks african footprint, like standard bank group operating in a number of countries as stanbic bank and barclays africa, and the availability of advanced technology and infrastructure in certain african countries are all shaping the banking industry across africa. Evaluating banking supervision in africa africa region working paper series no. This paper examines the relationship between bank structure, performance and competition in the south african banking industry. South africa has a very concentrated banking industry with a c4 concentration ratio of over 80%. In response, the four universal banks absa, firstrand, nedbank, and standard bank have continued.188 362 1123 310 191 926 406 1078 486 504 547 676 118 490 673 1311 1292 1020 419 1301 1348 612 1420 1227 851 46 381 665 1496 1140 157 67 602 1317 707 911 16 319 753 328 1144 715 974 219 857 199 702