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.

Scope

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.

Reasons to buy

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?

Companies mentioned

None

Table of Contents

OVERVIEW

Catalyst

Summary

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

CONCLUSIONS

Mobile banking a vital aspect of financial inclusion, set to grow further if regulation allows

APPENDIX

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