Thesis (MDF)--Stellenbosch University, 2012. / South Africa’s Financial Sector Charter of 2003 to 2008 contributed in many ways to
financial inclusion of the excluded masses, resulting in a decrease in proportion of excluded
excluded from over 50% in 2003 to 23.5% in 2010. Commercial banks around the world
have been known to bank the unbanked or downscale using various models. The report
investigates the motivation for commercial bank downscaling in South Africa, leading to the
various models of downscaling chosen by the Big 4. The reports finds that commercial banks
in South Africa are moving away from fragmented methods of engagement of the bottom of
the pyramid due to the large market which exists at that segment. This market accounts for
on average 50% of the banks’ clients which indicates that banks have been dealing with this
market for some time. The recent rise of a Microfinance bank has been credited as the
stimulus for the more aggressive approach that banks have taken in recent years. Bank
employees believe they have the resources and support to explore models of serving the
market profitably while external stakeholder to the bank believe the banks are not geared for
the market due to their cost structures and mentality and are therefore not fully exploring the
potential in the market.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/97166 |
| Date | 03 1900 |
| Creators | Leopold-George, Evelyn |
| Contributors | Ayayi, Ayi Gavriel, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Format | 85 p. |
| Rights | Stellenbosch University |
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