At the recent South African Banking Associations inaugural summit held on September 2010, it was estimated that the unbanked South Africans have put approximately R12 billion “under their mattresses” (Greyvenstein, 2010). This money would have a huge impact in the banking system if it was banked. It is widely held that whilst this problem is not uniquely South African and as per the latest Finscope survey results, since 2004, when Finscope first began tracking the number of adults not being served, a steady decline has been noted over the years in the number of banked individuals. The 2009 survey shows a further 2% deterioration when compared to 2008 in the financially excluded category. The 2009 Finscope report findings also show for the first time since 2004, a decline in the percentage number of South African adults who are banked from 63% in 2008 to 60% in 2009. The financial services sector has been identified as playing a crucial role in this transformation through its financing activities. It is therefore in this context that Beck and de la Torre (2006) argued that broad access to financial services is related to economic and social development. The South African government has therefore implemented various initiatives to combat these challenges. These initiatives, some together with the private sector, include the Broad Based Black Economic Empowerment Act, Financial Sector Charter, Dedicated Banks Bill and the launch of the Mzansi initiative.The Government is aware that broad-based BEE cannot happen unless previously disadvantaged individuals, especially the poor, are able to access financial services – in order to borrow and invest in small businesses, to save and to protect themselves against risks. The basis of the research is therefore to explore some of the reasons for the low access to financial services in South Africa’s Foundation of the Pyramid (LSM 1- 4) and to find possible solutions by building a model that could possibly work based on propositions related to aspects of the literature around employment status and income, access to credit, some type of identifiable address / dwellings, education, use of technology and costs. The analysis of the proposed model using frequency, descriptive statistics and the results of the chi-square test upheld all but one of the propositions and showed the possibility of this model to work in South Africa. Copyright / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted

With the establishment of the Financial Sector Charter, all the major banks are now 'committed' to provide banking f a c i l i t i es to anyone within a ten-kilometer radius of their home. Specific deadlines have been set, in which these banks will face huge penalties, if they have not achieved the agreed proposals. The justification for this study is to have a look at the feasibility of this charter in meeting the goals proposed without having a detrimental effect on the long-term profitability of Standard Bank. Making banking affordable to the previously unbanked sector is paramount to the success of bringing more people back into the financial mainstream. Mention must be made that banks with poor business models, reckless management practices and poor corporate governance do go out of business in South Africa and elsewhere. During this study, an in-depth literature review was done to analyze the causes of strategic failures in the South African financial services sector, as well as analyzing the strategies proposed by other leading financial institutions within the local and international financial services industry and comparing this to Standard Bank's strategy. The research technique is essentially qualitative, but will involve the collection of quantitative and qualitative data through the use of a questionnaire. This dissertation investigates what the big four banks in South Africa (with emphasis on Standard Bank) have achieved regarding opening up access to their saving and lending facilities to the unbanked, taking cognizance of the trends locally and internationally, finally leading to a conclusion as to the most appropriate strategy for the future. An investigation will be conducted into whether this financial institution should employ a prescriptive or emergent strategy approach in order to successfully compete in this sector. The different lending strategies, namely linkage banking, downscaling, and dedicated banks are analyzed with reference to the international experience. / Thesis (MBA)-University of KwaZulu-Natal, 2007.

The increasing mobile penetration rates in Africa provide an interesting opportunity to mitigate financial exclusion on the continent. Through mobile phone applications that provide an electronic store of value that sits on the mobile phone, the unbanked poor can now access accounts and initiate financial transactions on their mobile phone. The mobile phone presents a more affordable and accessible channel for transacting. The aim of the research was to determine the inclination for the unbanked at the base of the pyramid in South Africa to adopt mobile banking. In total, 100 individuals were interviewed to determine their propensity to adopt mobile banking if it were made available to them. The criteria for selection were residence in an informal settlement in Gauteng, being unbanked and having access to or ownership of a mobile phone. Graphical representations of the findings were analysed to determine the proportion of the sample that would adopt mobile banking under the various constructs. It was concluded that mobile banking had a high likelihood of being adopted by individuals at the base of the pyramid on the basis of its low cost, the convenience and security it offered, and the ease of its use. Additional factors in favour of adoption included observability and trialability. Copyright / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

The attention of information, communications, and technology (ICT) designers, developers, implementers, consultants, and venture capitalists, in the banking arena, has been focused on the corporate sector and on the commercial and corporate applications of ICT. Banking technology usage such as those by lower-income communities, have been marginalised and largely left unattended. During the past five years, activities, behaviours, and attitudes of the financial services industry increased, in favour of the under-serviced mass market. Global growth of electronic payment banking systems and usage has brought about a considerable amount of technological advancement. The low-income market has become a subject of interest by ICT solution providers, banks and credit-offering incumbents , academics, government, and alternative non-banks and non-governmental organisations (NGO’s). Despite the global increase in interest and technology usage, the inability to act on the augment, within the borders of Swaziland, is the primal focus of this research. Swaziland’s mass market can be transformed and banked through the proper deployment of ICTs. The ability to bank the un-banked, in viewing ICT as the enabler of the small society along with its various communities; those excluded because of cultural and educational restrictions; physical location and low income constraints; the disabled etc., can be achieved. This dissertation investigates and analyses the present situation of banking in Swaziland, the related entities involved, and attempts to formulate an appropriate strategy for the successful implementation of a suitable banking solution in the Swazi context. This includes the recognition that access, to any ICT, in itself is insufficient, and illustrates, through the use of community informatics (CI), systems theory, change management theory, and the essential pre-study towards the utilisation of ICT deployed on a grand scale. / Dissertation (MCom)--University of Pretoria, 2008. / Informatics / unrestricted

This dissertation contributes to studies in macroeconomics, microfinance, entrepreneurship, financial technology innovation (FinTech), and economic development. In particular, I study unbanked problems and evaluate microfinance programs. Chapter 1 studies quantitatively how a microfinance program in the U.S. affects occupational choice, firm size, credit access, wages, output, inequality and welfare. The general equilibrium model has heterogeneous agents, a bank with a minimum loan size requirement and a microfinance institution (MFI) with a loan interest rate that exceeds the bank's. Four microfinance program policies are evaluated: alternative minimum loan size requirements, changes in the loan cost wedge (due to innovation or regulation), changes to the level of the government subsidy, and alternative MFI sustainability requirements. We find that MFIs can have significant welfare effects for some individuals. In Chapter 2, I introduce a microsavings program for low-wealth individuals in a general equilibrium model with heterogeneous agents. The model incorporates that (i) traditional banks require a minimum savings deposit size, causing some individuals to become “unbanked,'' and (ii) banks and non-profits partner to offer microsavings programs to the unbanked. The paper finds that microsavings programs increase the percentage of entrepreneurs by providing collateral that the previously unbanked can use to start firms, and wages increase, which benefits workers. Second, government subsidies for microsavings programs expand the size and number of firms, but output and workers may decline when funding the program requires higher income taxes. Third, bank sector deregulation (i.e., lower transaction costs in the financial sector) leads to higher output per capita, wages, and firm numbers, and possibly lower income inequality among entrepreneurs. Finally, technological innovations that decrease deposit transaction costs, such as mobile banking, reduce funding pressure on microsavings programs, but have little effect on the percentage of entrepreneurs, firm size, entrepreneur returns or wages.

In developed countries, the business environment is highly saturated, with large numbers of banks, and mobile network operators. As a result, customers have a range of options in choosing preferential services providers. In Africa, most countries have dissimilar business environments; however, some countries have paved new frontiers in enabling access to financial services mainly through mobile banking services.In South Africa, a different situation prevails even though in certain instances the business environment is more advanced than other African countries. Over the past five years, South Africa reported upward trends in real income for LSM1-5 (living standard measure), and the number of mobile subscribers per household. Conversely, it also reported 60:40 ratios between the number of mobile subscribers and bank account holders with an expectation that the gap will grow further if key fundamentals are not revised in the banking sector.This research explored mobile banking capabilities required to serve the unbanked market of South Africa; and in doing so highlight the prospects of financial inclusion towards social and economic development, particularly when the firm seeks to offer products and services, which are reflective of the demographics of this country.Thus, as an exploratory study, it was necessary to gain insights from experts involved in designing, co-ordinating, and delivering mobile banking products and services. As a result, the research noted gaps in the products and services being offered across the different market segments. It also noted that in addressing these gaps; the banking sector requires participation from other key role players, such as the mobile network operators, regulator, and government. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

With growing number of adult people not owning a bank account,efforts are being made to bring banking services to the unbanked populations.Relationships marketing plays a crucial role in  establishing and sustaining beneficial relationship in the banking industry. This study sought to explore the link between agent banking and relationship marketing through an exploratory qualitative approach.The findings show that agent banking as a fairly new phenomenon relies on the integration of different functions within the bank with a strong emphasis on the role of technology,processes and personnel to delivder services that can be acceptable to the customers so as to create long lasting beneficial relationships. Through semi-structured interviews with employees of 6 banks that offer agent banking in Bangladesh,this study contributes a key reflection document on implemenation of agent banking for other banks that intend to start offering agent banking services in Bangladesh.

Magister Legum - LLM / This paper analyses how the Zimbabwean economic history has led to the perception and attitude of the population towards the financial industry. It has been blighted by extremes to the extent that in 2008 the Zimbabwe economy had one of the highest hyperinflation rate in the world.1 Pettinger sums up the hyperinflation journey of Zimbabwe as having begun in the 1990s shortly after the disastrous land reform.2 This is where private farms were grabbed from landowners and re-allocated to mostly peasant farmers who had no technical know-how in farming. It was also a time when the country was involved in an unbudgeted and unsolicited second Congo civil war necessitating that the Government increase salaries to cater for soldiers and other officials assigned to the Congo.3 Earlier on the government had buckled under pressure from former war liberators (war veterans) and paid out unbudgeted bonuses.4

Mobile phone service is increasing among low income populations; however, with over 1 billion mobile service users worldwide, many people still lack banking services. Banks do not reach out to the poor because of the high operational costs involved. Scholars and industry practitioners have indicated that mobile phones could be an alternative channel for delivering financial services to the less advantaged and unbanked, without requiring a traditional bank with a branch network. The purpose of this bounded case study was to explore the strategies bank managers used to implement the new mobile banking service to the Ethiopian community. The new product development theory served as the conceptual framework for this study. Twenty experienced bank managers were interviewed from the leading private bank in Ethiopia. Data were segmented and categorized. After member checking and triangulation, data were sorted into 4 themes: development, testing, commercialization of new products or services, and an organizational commitment to adopt new technologies and innovative processes. The findings may contribute to the body of knowledge regarding strategies bank managers can use for implementing and introducing new products in order to contribute to the prosperity of individuals, businesses, and communities.

Thesis (MComm)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: South Africans earning less than Rl 440 per month (18 million adults) and less than R2 880 per month (29 million adults) are regarded as poor and relatively poor respectively. Of the relatively poor, 78% are unbanked, i.e. do not have access to a formal bank account, while 86% of the poor are unbanked. These figures show clearly that commercial banks do not meet the financial needs of many people, especially the poor for savings, credit, transmission and insurance services. Therefore the importance of those institutions that do not form part of the formal financial sector and provide micro savings and micro credit services, generally referred to as micro finance, to the poor at the local level on a sustainable basis. The objective of this research is twofold. Firstly, a review of the literature on micro finance in general to establish the financial needs of the poor, the constraints formal financial institutions face in providing micro financial services and to identify best practice regarding the provision of financial services to the poor in order to be in the position to form an opinion on institutional success. Secondly, to analyse a specific South African micro finance initiative, Financial Services Cooperatives (FSCs), to identify how FSCs relate to the international best practice and to establish whether they are successful in addressing the financial needs of the poor. A FSC is a financial institution through which micro finance services (savings, credit, transmission and insurance) are extended to unbanked households in a rural village. It utilises a community's rules, customs, relationships, knowledge, solidarity and resources combined with formal financial methods and concepts. The FSC is initiated, owned, financed and managed by the villagers themselves. FSCs are registered cooperatives under the Cooperative Act of 1981 and may accept deposits from their members in terms of an exemption from the Bank Act of 1990. Currently, FSCs experience problems in providing credit, transmission and insurance services, preventing them from intermediating between borrowers and savers. After reviewing the above-mentioned international best practice the conclusion reached with regard to FSCs includes the following: FSCs only provide savings services and therefore do not intermediate between borrowers and savers as required for a financial institution. This in tum prevents them from being sustainable. FSCs' failure can be ascribed to the restrictive legislation, unsuccessful regulation and supervision. New legislation is currently under review that will change the landscape for micro finance and specifically for FSCs. / AFRIKAANSE OPSOMMING: Suid-Afrikaners wat minder as Rl 440 per maand (18 miljoen volwassenes) en minder as R2 880 per maand verdien (29 miljoen volwassenes) word onderskeidelik as arm and relatief arm bestempel. Agt-en-sewentig persent van dié wat relatief arm is, het nie toegang tot 'n formele bankrekening nie, terwyl 86% van dié wat arm is, geen toegang het nie. Hierdie syfers toon duidelik dat kommersiële banke nie aan die finansiële behoeftes, met betrekking tot spaar-, krediet-, transmissie- en versekeringsdienste van baie mense voldoen nie, veral nie die armes nie. Daarom dat instellings wat nie deel vorm van die formele finansiële sektor nie en mikrobesparings en mikro-krediet, algemeen bekend as mikro-finansies, in 'n plaaslike gebied en op 'n volhoubare basis verleen, belangrik is. Die doel van hierdie navorsing is tweeledig: Eerstens, bied dit 'n oorsig oor die mikro-finansiering literatuur ten einde die finansiële behoeftes van die armes te ondersoek en die beperkings wat formele finansiële instellings ondervind om mikro-finansiële dienste te verskaf, aan te stip. Beste praktyk rakende die voorsiening van finansiële dienste aan die armes word geïdentifiseer, om sodoende in 'n posisie te wees om 'n opinie te kan vorm oor institusionele suksesfaktore. Tweedens, om a spesifieke Suid-Afrikaanse mikro-finansiële inisiatief, Finanical Services Cooperatives (FSCs) te ondersoek, ten einde vas te stel hoe hierdie inisiatief vergelyk met internasionale beste praktyk en hoe suksesvol dit is in die voorsiening van finansiële dienste aan die armes. 'n FSC is 'n finansiële instelling waardeur mikro-finansiële dienste (spaar-, krediet-, transmissie- en versekeringsdienste) verskaf word aan diegene in 'n plattelandse nedersetting wat nie toegang tot formele bankdienste het me. FSCs maak gebruik van 'n gemeenskap se reëls, gebruike, verhoudings, kennis, solidariteit en hulpbronne en kombineer dit met formele finansiële metodes en konsepte. Dit is 'n inisiatief van die gemeenskap en word deur die inwoners van die nedersetting besit, finansier en bestuur. FSCs is geregistreerde koëperasies in terme van die Ko-operatiewe Wet van 1981, en mag ook deposito's van hulle lede aanvaar op grand van 'n vrystelling van die Bankwet van 1990. Tans ondervind FSCs probleme in die verskaffing van krediet-, transmissieen versekeringsdienste wat hulle verhoed om as tussenganger tussen leners en spaarders op te tree. Na die oorweging van die internasionale beste-praktyk, kan die volgende gevolgtrekking rakende FSCs gemaak word: FSCs tree nie op as tussenganger tussen leners en spaarders nie, soos vereis word van 'n finansiële instelling nie. Dit beperk gevolglik volhoubaarheid. Die mislukking kan toegeskryf word aan beperkte wetgewing, onsuksesvolle regulering en supervisie. Nuwe wetgewing is tans onder oorweging wat die landskap vir mikro finansiering en veral vir FSCs sal verander.