24 February 2018
Visit www.avoka.com

Banks and MNOs set for sub-Saharan African mobile money market fee bonanza

19 February 2015  |  7183 views  |  0 Africa

The sub-Saharan mobile money revolution is set to net providers such as telcos and banks as much as $1.5 billion in fees by 2019, according to research from the Boston Consulting Group (BCG).

Last month Bill Gates predicted that by 2030 two billion people who don't have a bank account today will be storing money and making payment with their mobile phones.

In sub-Saharan Africa the adoption of mobile money is already well underway and the opportunity for further growth is huge, says BCG. By 2019, the firm estimates that there will be 400 million mobile phone owners in the region with an income of at least $500 a year. Yet, just 150 million of these will have a traditional bank account, leaving 250 million open to mobile money providers.

So far, P2P and bill payments have dominated the mobile financial services market in Africa, and BCG estimates that fees from these activities - along with deposit income - could make $1.5 billion for providers in 2019.

However, perhaps the biggest opportunities for banks and telcos lie in the provision of a host of new products - loans, savings accounts, mortgages and insurance - that will become more attractive to people as their wealth increases.

Banks and MNOs still have time to cash in because, with the exception of M-Pesa-dominated Kenya, there are no countries in the region that have seen one dominant player establish itself.

To succeed, would-be contenders need to invest in building up a network of agents and to build up partnerships, says BCG partner Hans Kuipers. "Banks and MNOs are complementary in this space; each has something the other needs. In many cases, it will make sense for them to team up."

Read the full study

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Orange and Ecobank form African m-banking partnership

Orange and Ecobank form African m-banking partnership

06 February 2015  |  8083 views  |  1 comments | 10 tweets | 12 linkedin
Gates makes mobile banking bet

Gates makes mobile banking bet

22 January 2015  |  20160 views  |  4 comments | 55 tweets | 46 linkedin
Gates Foundation launches challenge to boost mobile money acceptance

Gates Foundation launches challenge to boost mobile money acceptance

18 September 2014  |  8298 views  |  0 comments | 19 tweets | 16 linkedin
Digital payments crucial to economic growth - World Bank report

Digital payments crucial to economic growth - World Bank report

28 August 2014  |  15199 views  |  0 comments | 40 tweets | 30 linkedin
BNP Paribas and Orange join forces on African mobile banking

BNP Paribas and Orange join forces on African mobile banking

17 June 2014  |  7405 views  |  0 comments | 9 tweets | 7 linkedin
Africa drives soaring worldwide mobile money adoption - GSMA

Africa drives soaring worldwide mobile money adoption - GSMA

25 February 2014  |  5064 views  |  0 comments | 11 tweets | 7 linkedin
East African banks create cross-border payment system

East African banks create cross-border payment system

12 December 2013  |  4382 views  |  0 comments | 5 tweets | 6 linkedin
African mobile money adoption soars - GSMA

African mobile money adoption soars - GSMA

01 March 2013  |  8346 views  |  0 comments | 15 tweets | 5 linkedin

Related blogs

Create a blog about this story (membership required)
visit www.swift.com/your-needs/instant-paymentsRegister for the webinarVisit http://info.nice.com

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
11586 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10266 views 3 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
8379 views comments | 15 tweets | 26 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
7934 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
7650 views comments | 10 tweets | 14 linkedin

Featured job

Six-Figure-Base, Double OTE, Benefits Package
London, UK

Find your next job