Thesis (MBA)--Stellenbosch University, 2011. / Little research has yet been undertaken in South Africa about commercial banks that are servicing
the microenterprise market. The objective for the current research was to investigate the key
factors that should be considered by commercial banks in South Africa servicing the
microenterprise market. The focus for the study was on identifying the key factors and on
investigating how the key factors were being considered.
There are a number of case studies documenting the key factors that international commercial
banks have considered. However, in South Africa, there are relatively few documented cases,
which rightfully confirms that commercial banks providing microfinance to microentrepreneurs are
still in a new line of business that is in its early developmental stages.
The first part of the current study aimed to identify the key factors that required consideration,
which have been well documented in a number of research reports. The focus was also laid on
international commercial banks that offered microfinance services, especially to microenterprises.
The intention was to obtain an overview of how international banks have considered the key
factors concerned. The second part of the research study aimed to see how South African
commercial banks have considered the above-mentioned key factors, using Absa and Capitec
banks as case studies.
The key factors identified are the following: the operating model; the delivery model; institutional
commitment; product development; funding; technical assistance; human resource (recruitment,
retention and remuneration); and operations (credit methodology; loan appraisals; lending
methodology; collections; branch network; and support services). The international commercial
banks whose case studies are reviewed include: Banco do Nordeste; Bank Rakyat Indonesia; the
Commercial Bank of Zimbabwe; the Cooperative Bank of Kenya; Banque du Caire; the Agricultural
Bank of Mongolia; Hatton National Bank; the Industrial Credit and Investment Corporation of India;
and Banco de la Empressa. From the case studies it was seen that some of the commercial banks
considered certain factors more than others. The other differentiating factor is how the key factors
were considered, because the operating context of the different commercial banks differs.
In South Africa, Absa and Capitec Bank have also considered the key factors, however, the
operating model and the delivery model are the biggest differentiator as to how the other factors
are considered.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/21788 |
| Date | 12 1900 |
| Creators | Kumalo, Sibongile |
| Contributors | Ungerer, Marius, 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 | xiii, 118 p. : col. ill. |
| Rights | Stellenbosch University |
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