Phoney Banking. The Unbanked. The Economist on mobile telephony and banking''

Most South Africans do not have bank accounts. But most do have mobile phones, writes The Economist today in a story about mobile telephony and banking with a particular focus on Africa. via putting people first.

''In most of Africa, meanwhile, only a fraction of people have bank accountsbut there is huge demand for cheap and convenient ways to send money and buy prepaid services such as airtime. Many Africans, having skipped landlines and jumped to mobiles, already use prepaid airtime as a way of transferring money. They could now leap from a world of cash to cellular banking.

... South Africa is not the first place to use mobile-phone banking: countries such as Japan, South Korea and the Philippines have had it for a while. But the potential is probably bigger in the developing world, and in countries in which migrants remit money to their families in relatively poor homelands.''

Life is now easier for Andile Mbatha, who owns a hair salon in Soweto. Gone are his days of trekking to his bank, which could take two hours by minibus, to send money to relatives. Nor does he keep piles of cash in his salon any more. Last year, he opened a bank account with WIZZIT, an innovative provider of financial services. He now sends money to his sister in Cape Town whenever he wants, from wherever he wants, using a simple menu on his mobile phone. Half his customers no longer pay cash for their haircuts. They use their phones to move money from their accounts to his, in a few seconds. This has taken out a lot of stress, says Mr Mbatha.
10/27/2006 3:26:04 PM
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