2012/03/29

1

FinScope Consumer Survey

Namibia 2012

Ministry of Finance

Windhoek, Namibia

8 March 2012

Christiaan Keulder and Dr Kammy Naidoo

FinScope Consumer Survey

Namibia 2012

Ministry of Finance

Windhoek, Namibia

8 March 2012

Christiaan Keulder and Dr Kammy Naidoo

2012/03/29

2

• Introduction and background

• Methodology of the study

• Understanding people’s lives

• Financial inclusion

• Financial capability

• Conclusion

Contents

Introduction and background

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FinScope Consumer Surveys

What

Nationally representative study of demand for,

usage of, and access to financial services

Where

16 African countries, as well as Pakistan

Objective for FinScope Namibia

To measure and profile levels of access to and

use of financial services by all adults aged 16

years and older, across income ranges and other

demographics

FinMark Trust’s FinScope research

Republic of Namibia

MINISTRY OF FINANCE

Partnering for a common purpose

FinScope Namibia follows a syndicate-funded approach. The syndicate members form an

integral part in the survey questionnaire design and offer other valuable insights into

consumer demand behaviour.

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Methodology of the study

Overview

Logistics Details

Methodology Face-to-face, pen and paper interviews were conducted among adults in Namibia (16 years and older)

Sampling frame Listing exercise, population stratified by location (urban/rural)

Sample area selection 150 Enumerator Areas (EAs) were selected using probability proportional to size (PPS), interviews were conducted in 56 urban and 94 rural EAs

Sample size 1200 interviews, nationally representative sample

Household qualification

8 households were selected from each EA using systematic random sampling

Respondent selection Final respondent to interview was selected using the Kish Grid method

Questionnaire length ± 75 minutes

Fieldwork November 2011 to January 2012

Data management 20% back checks, data capturing in SPSS, weighting was done on EA, household and individual level, data validation against census data

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Weighting methodology

• 2004 and 2007 – weighting was done using the projected national population

of 2006

• The 2004 data was only weighted in 2007, using the same population

projections as a basis for weighting

• Given that a household listing was conducted in 2011, the National Planning

Commission (NPC) used listing figures as a basis of computing the weights

for households and individuals

• In order to verify the weights, the resultant weights were compared to the

2009/2010 National Household Income and Expenditure Survey (NHIES)survey that was conducted by the NPC

• Slight adjustments were made to the weights computed from the household

listings conducted by Survey Warehouse, given that the NHIES sample was

much bigger, more EAs were covered, and therefore provided more accurate

population data as a basis for weighting

Understanding people’s lives

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Demographic characteristics

Age Education

7

13

12

39

18

5

5

10 20 30 40 50

No formal education

Incomplete primary school

Primary school completed

Incomplete secondary school

Secondary school completed

Incomplete post secondary

Tertiary/post Secondary …

15

15

10

11

8

6

4

3

4

4

2

3

5 10 15

16 - 19

20 - 24

25 - 29

30 - 34

35 - 39

40 - 44

45 - 49

50 - 54

55 - 59

60 - 64

65 - 69

70 - 74

75+

• More than 50% of the Namibian adult

population are under 35

• More than 50% of the Namibian adults

have not completed secondary school

Note: Adult population refers to people aged 16 years

and older (bankable age in Namibia)

Demographic characteristics (cont.)

Access to water Sanitation

1

1

1

2

4

5

7

25

52

10 20 30 40 50 60

Piped water into neighbour's …

Protected dug well

Other

Rainwater

Surface water

Tube well/Borehole

Unprotected dug well

Public tap/Standpipe

Piped water into …

1

1

1

1

2

2

43

48

10 20 30 40 50 60

Other

Flush/Pour flush to pit latrine

Pit latrine with slab

Flush/Pour flush to septic tank

Pit latrine without slab/open pit

Ventilated improved pit latrine

Flush/Pour flush to piped …

No facility/Bush/Field

• Approximately 80% of people have

access to water within their yard

• Low levels of access to flush toilet

facilities

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Demographic characteristics (cont.)

Energy source (cooking)

41.0

4.2

1.7

.2

50.7

.6

.4

1.2

Electricity

Liquid Petroleum Gas/natural …

Kerosene/Paraffin

Charcoal

Wood

Agricultural crop

Animal dung

Other

• Compared to other

African countries, there

are high levels of

electricity usage

• However, there is also

still high use of basic

energy sources

Demographic characteristics (cont.)

Access to technology (communication)

94.5

42.4

30.134.8

.0

20.0

40.0

60.0

80.0

100.0

Cell Phone Public

Phone

Landline Internet

Documentation

91.5

33.5

21.112.1

.0

20.0

40.0

60.0

80.0

100.0

ID Residential

Address

Proof of

Income

Drivers

License

• High levels of access to

communications technology,

particularly cell phone

• Almost the entire adult population has

formal documentation, i.e. an Identity

Document (ID)

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Monthly personal income

Income

19

52

13

5

3

1

1

3

2

.2

10 20 30 40 50 60

I do not have a regular monthly income

Up to NAD 1,000.00

NAD 1,001.00 to NAD 3,000.00

NAD 3,001.00 to NAD 5,000.00

NAD 5,001.00 to NAD 7,000.00

NAD 7,001.00 to NAD 9,000.00

NAD 9,001.00 to NAD 11,000.00

More than NAD 11,000

Don't know

Refused

• Almost half the adults earn N1000 or less, while 19% do not receive a regular income

Income (cont.)

Frequency of income lasting

until next income is received

Ease of keeping up with

financial commitments

34.0

26.5

21.8

10.8

7.0

Very

difficult

Somewhat

difficult

Netither

easy nor

diffult

Somewhat

easy

Very easy

36.839.6

23.6

Never Seldom Often

• 60% have difficulty keeping up with financial commitments while

76% have problems making ends meet

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Income (cont.)

Main source of income

5.8

6.5

7.9

9.0

9.5

11.3

12.0

18.6

Salary/wages from an individual (ie

domestic worker/farm work)

Someone else pays my expenses

Salary/Wages from private company

Get money from someone else

Remittances (money from

friends/family)

Self-employed (have own business) -

informal sector

Government old age pension

Salary/Wages from

Government/Parastatal • Only 8% receive a

salary/wage from the

private sector compared

to 19% receiving

salaries/wages from

government

• 25% receive money from

others, while 11% are self

employed and 12% rely on

government pensions

Income (cont.)

Mode of payment

66.3%

2.3%

28.3%

.6%

.7%

1.8%

Cash in hand

Cheque

Into bank or Nampost

account

Western Union/Thomas

Cook/Paypal

In my Mobipay account

I do not receive the money

• 66% receive their income in cash and

only 28% receive their income into a

bank account

Frequency of income

7.0%

3.0%

1.6%

59.7%

2.9%

8.3%

14.1%

1.5%

1.9%

Daily

Weekly

Fortnightly (every two weeks)

Monthly

Annually

Seasonally

Occasionally

Upon competion of job

Did not specify

• 60% receive a monthly income

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Understanding the lives of people in 2012

12.4%

12.7%

15.6%

17.2%

20.2%

21.9%

37.1%

Unforeseen natural disasters (flooding etc)

That I cannot buy enough food at the end of the month

Getting wrong financial advice

Not having enough money in a couple of years / when I …

The education of my children

Death of main income earner

Losing the money I earned (eg through stealing)

Household financial concerns

• Almost 41% of people had to go without a cash income in the last 6 months and had to make a plan to make ends meet

• Losing money through crime and the death of an income earner is a significant household concern45.6%

41.0%

9.5%

3.7%

0.2%

Never

Sometimes

Often

Always

Refused

Had to go without a cash income

Key take-outs

• Young population with a large majority that has not completed high school

• Although there are high levels of access to water, there are low levels of access

to proper sanitation

• High levels of access to electricity compared to other African countries

• Low income levels, and personal income is received mainly through cash

payments, mainly on a monthly basis

• In addition to not receiving more income, losing the money through crime was

a significant concern

• Rising living costs has had a significant impact on people

• A large proportion of the population receive money from others

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Financial inclusion

Total adult population= Minimum age defined by the age at which individuals can enter into a legal financial transaction in their own capacity

Financially included= Adults who have/use financial products and/or services – formal and/or informal

Financially excluded= Adults who do not have/use any financial products and/or services – if borrowing, they rely only on friend/family; and if saving, they save at home

Formally served= Adults who have/use financial products and/or services provided by a financial institution (bank and/or non-bank)

Informally served= Adults who have/use financial products and/or services which are not regulated, e.g. cooperatives, farmer associations, saving clubs/groups, private money lenders

Banked= Adults who have/use financial products and/or services provided by a commercial bank regulated by the central bank

Served by other formal financial

institutions= Adults who have/use financial products and/or services provided by regulated non-bank formal financial institutions, insurance companies, retail credit providers, remittance service providers

Formal Inclusion

Analytical framework of the study

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Informally served

Formally served

Have/use bank products AND informal products

Have/use bank AND non-bank formal products

Have/use only bank products

Have/use only non-bank formal products

Have/use bank AND non-bank formal

products AND informal products

Have/use only informal products

Have/use non-bank formal products AND informal

products

Defining financial inclusion

Financial Inclusion

• 65% of Namibian adults (727 736) are formally served

• 62% of adults are banked

• 46% of adults have/use other formal bank products/services

• 13% of adults have/use informal mechanisms for managing their finances

• Financial exclusion has reduced from 51% in 2007 to 31% in 2012. However, if they save they keep their money at home and their only coping mechanism is reliance on families and friends

Financial inclusion in Namibia

51

6

19

45

47

31

13

46

62

65

0 20 40 60 80

Excluded

Informally served

Other formal

Banked

Formally served

2012

2007

Financial inclusion 2007 versus 2012

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What drives the use of products/services?

2

10

13

92

99

Remittance

Funeral

Credit

Savings

Transactional

When looking at the overall use of financial products it is clear that there is still scope to

deepen both the quality and the extent of inclusion.

What drives banking

Banking is largely driven by

transactional and saving products:

• 99% of banked adults have/use

transaction products

• 92% have/use savings products

• Only 13% have/use credit products

• 10% have/use funeral cover

• 2% use the bank/banking products

for remittance purposes

12

18

64

68

Remittance

Credit

Savings

Insurance

What drives the use of other

formal products/services

• 68% of adults who use non-

bank formal products have/use

insurance products including

short- and long-term products

• 64% have/use savings products

• 18% have/use credit products

• 12% use remitting

products/services

What drives the use of products/services? (cont.)

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14

9

25

29

Burial society

Savings

Credit

What drives the use of

informal products

• 29% borrow from informal

lenders

• 25% of adults who use informal

mechanisms belong to savings

groups

• 9% are members of burial

societies

What drives the use of products/services? (cont.)

Access Strand

In constructing the Access Strand, the overlaps in financial product/service usage are removed, resulting in the following segments:• Financially excluded individuals• Individuals who have/use informal products/services and NO formal products• Individuals who have/use formal non-bank products/services and NO commercial bank products• Individuals who have/use commercial bank products

62

45

3

2

4

1

31

52

2012

2007

Banked

Formal other (non-bank products)

Informally served only

Not served

• The proportion of banked adults increased from 45% in 2007 to 62% in 2012• The percentage of financially included adults has increased significantly from 48% 2007 to 69% in

2012• The increase in the proportion of the banked population seems to be in transaction

and saving accounts, as shown by the drivers of banking

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Access Strand by gender

62

62

3

3

5

4

30

31

Male

Female

Banked

Formal other (non-

bank products)

Informally served

only

Not served

• Namibia is the only country where FinScope depicts a higher uptake of informal

mechanisms amongst the male adult population compared to the female adult population

Access Strand by urban/rural

76

51

3

4

2

6

19

39

Urban

Rural

Banked

Formal other (non-bank products)

Informally served only

Not served

• There are large differences in the levels of financial inclusion: 81% of the urban

adult population is financially included, compared to 61% of the rural adult

population

• High levels of financial inclusion among the urban adult population is driven by

the usage of banking products/services (76% have/use banking products)

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Comparing access across countries

63

62

44

41

38

34

30

26

29

21

19

14

14

12

5

3

6

18

20

7

6

9

18

7

7

7

9

4

5

4

13

8

23

15

17

24

26

42

19

26

14

28

27

31

37

33

19

44

47

41

33

30

55

53

63

56

RSA '11

Namibia '2012

Swaziland '11

Botswana '09

Lesotho '11

Ghana '10

Nigeria '10

zimbabwe '11

Kenya '09

Uganda '09

Malawi '08

Rwanda '08

Zambia '09

Tanzania '09

Banked Formal other (non-bank products) Informally served only Not served

Landscape of Access 2007 and 2012

The FinScope methodology uses the Landscape of Access to illustrate the degree to which individuals (aged 16 years and older) have/use financial products and services.

The diagram depicts, on its four axes, the percentage of adults that have or use:

• Transaction products/services• Saving products/services• Credit products/services• Insurance products/services

The Landscape of Access in

Namibia is largely driven by

transaction and saving products

63

64

20

36

45

46

15

18

0

20

40

60

80Transaction

Savings

Credit and

loans

Insurance2012

2007

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Formal financial sector snapshot

Number of access points by registered financial institutions

• The financial services sector has remained stable with four commercial banks, one savings bank, ten insurance companies and a large number of microlenders

• Independent mobile payments services (Mobipay) were introduced since the last survey in 2007

• Nampost changed their product and strategy which has significantly driven product uptake:

– The physical savings book product was terminated and a biometric smartcard aimed at low income users was introduced

Financial institutions Number of providers

Commercial banks 4

Savings bank (Nampost) 1

Insurance companies 10

Microlenders 348

561

384

349

175

119

35

Short term insurance

Banks

Microlender

Other

Savings bank/Nampost

Long term insurer

Banking

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Bank presence by region

Region Bank Windhoek First National Bank Nedbank Standard Bank Nampost Total

Caprivi 2 3 2 2 4 13

Erongo 17 16 10 12 13 68

Hardap 8 6 0 6 8 28

Karas 11 10 4 10 18 53

Kavango 5 3 1 2 4 15

Khomas 36 49 26 18 22 151

Kunene 5 4 0 4 6 19

Ohangwena 4 4 4 2 5 19

Omaheke 3 3 0 4 6 16

Omusati 2 2 2 2 7 15

Oshana 12 11 6 8 7 44

Oshikoto 5 3 0 4 9 21

Otjozondjupa 9 12 2 8 10 41

Other 15

Total number

of outlets 119 126 57 82 134 518

Notes: Standard Bank branch data unavailable

• 42% growth in bank presence since 2007, largely driven by growth in Nampost branch network• Commercial bank branch growth at 7%

Bank branches opened since 2007

COMMERCIAL BANKS BRANCHES OPENED SINCE 2007 BRANCH LOCATIONS SINCE 2007

BANK WINDHOEK 14

NKURENKURU WALVIS BAY (AGENCY)

OUTAPI REHOBOTH

LUDERITZ OSHIKANGO

ARANDIS (AGENCY) PROSPERITA (AGENCY)

OMARURU CAPRICORN BRANCH

AIGAMS (AGENCY) OMITHIYA

KHOMASDAL (AGENCY) SWAKOPMUND (AGENCY)

FIRST NATIONAL BANK

NAMIBIA15

OKONGO WINDHOEK, PROSPERITA

KATUTURA WINDHOEK, NORTHERN INDUSTRIAL

OUTAPI OKAHAO

EENHANA WINDHOEK, PRIVATE CLIENTS

OSHIKANGO SWAKOPMUND, MONDESA

HENTIES BAY USAKOS

OMUTHIYA OSHAKATI, GAME SHOPPING CENTRE

WINDHOEK, OLD POWER STATION

NEDBANK NAMIBIA 5BUSINESS CENTRE GROOTFONTEIN

EENHANA OUTAPI

KATIMA MULILO

STANDARD BANK NAMIBIA Have not received information yet

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Unpacking growth in banking services

Demographic Characteristics2007 (n=1200) 2012 (n=1200)

Gender % %

Male 47 62

Female 46 63

Age % %

16 - 20 26 32

21 - 26 23 58

27 - 31 56 70

32 - 39 61 96

40 - 50 56 66

51 + 46 74

Area definition % %

Urban 70 77

Rural 36 51

Personal monthly income % %

No income 8 29

Less 1000 41 57

1001 - 3000 88 94

3001 - 5000 87 95

5001 - 13000 96 99

13001 + 98 100

• 17% increase in the banked

population from 2007-2012.

The increase has largely

come from:

– People aged 32-39

– Mostly living in rural areas

– Very low income

• Low growth in high income

segments as inclusion was

already high in these

segments

Physical access to a bank or post office

• Namibia is characterised by low population density spread across the country

• Traditional brick-and-mortar solutions are not cost-effective as they are

currently not reaching the poor

• Alternative distribution channels such as mobile, branchless and agency

banking are key to driving financial inclusion

72

23

5

14

35

49

0

10

20

30

40

50

60

70

80

Less 30 minutes Between 30 - 60

minutes

More than an hour

Urban

Rural

Physical access to bank Physical access to Post Office51

42

7

17

26

43

0

10

20

30

40

50

60

Less 30 minutes Between 30 - 60

minutes

More than an hour

Urban

Rural

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Banking product penetration

1

2

2

4

4

6

7

13

22

41

43

0 5 10 15 20 25 30 35 40 45 50

Money market account

Loan account from a bank or Nampost

Bank overdraft

Credit card

Internet banking

Fixed Deposit Account at a bank

Cellphone banking

Current/cheque account

Debit card

ATM card

Savings Account/Smartcard or Savings Book at a bank or Nampost

• 14% of adults (157 617) dropped out of banking, i.e.

previously had a bank account but do not have one any more

Banking product usage

Banking (cont.)

Main advantages of using a bank account Mainly refer to safety and ease of use

12.1%

12.1%

14.6%

22.9%

30.1%

37.7%

52.3%

You get interest on savings

Safe way of sending money to others

Easy way of sending money to others

Safe wat of receiving money from

others

Easy way of receiving money from

others

Salaries can be deposited

Money is safe from theft

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Banking (cont.)

Barriers to banking

Reasons for not having a bank account or using banking products and services

mainly relate to a lack of financial resources and affordability:

• I have no money to save (54.4%)

• I cannot maintain the minimum balance (25.7%)

• Bank services charges are too high (14.6%)

• Insufficient or no money coming into the account (12.4%)

Other reasons refer to proximity/ geographical accessibility (banks are too far

away 15.1%) and lack of documentation (I do not have the documentation

required 9.4%)

Savings

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Understanding the levels of financial inclusion is only the first step. While insightful in itself, this understanding is enhanced by exploring products and services that the poor are likely to have/use under each category of inclusion.

The Savings Strand focuses on the usage of savings and investment products, resulting in the

following segments:• Individuals who have not/ do not use savings products/services• Individuals who keep all their savings at home (i.e. these individuals do not have or use formal or

informal savings products or mechanism)• Individuals who have a formal savings/investment product, • Individuals who rely on informal mechanisms

Savings

62.9% 0.6% 9.6% 27.0%

Savings

formal informal at home or in kind do not save

Savings (cont.)

11.1%

12.8%

19.5%

20.0%

22.2%

23.5%

28.9%

34.6%

It should be a product that is associated with

a well known brand

The contract should be well explained to me

It should be recommended by the

newspaper, radio and by offial institutions

It should be offered and explained in a

language that I understand

I should trust the product

I must know that my money is safe

It should offer low fees and charges

It should be recommended by

family/friends/others in the community

Main factors for choosing a savings product

• Trust and low bank

charges are reasons for

choosing a savings

product

• Savings products have

been largely driven by

Nampost Smartcard

• 48% have a Nampost

savings account or

Smartcard, followed by

24% with a FNB account,

and 10% with a Standard

Bank or Nedbank account

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Savings (cont.)

Barriers to savings

• Insufficient income and not having any money left at the end of the month

are key barriers to saving

27.5%

1.9% 3.0%

30.5%

37.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

I do not save at all I save on a daily basis I save on a weekly basis I save on a monthly basis I save if and when I have

extra money

Frequency of saving

Borrowing

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Borrowing

12.5% 7.4% 12.3% 67.8%����Credit

formal informal family and friends no credit

The informally served (i.e. adults who have/use financial products and/or services which are not regulated, e.g. cooperatives, farmer associations, saving clubs/groups, private money lenders) are the main users of credit products. This understanding is enhanced by exploring products and services that the poor are likely to have/use under each category of inclusion.

The Credit Strand focuses on borrowing and the usage of credit products, resulting in the

following segments:� Individuals who have/use formal credit products/services� Individuals who rely on informal mechanisms� Individuals who borrow from family and friends � Individuals who keep all their savings at home (i.e. these individuals do not have or use formal or

informal savings products or mechanism)

Borrowing (cont.)

• 15% of respondents borrowed money during the past 6 months

• 15.1% received goods/services in advance and had to pay for it later

• The main reasons for not borrowing money/taking goods or services on credit were:

₋ Fear of debt (48.8%)

₋ Fears about not being able to

pay back the debt (28.1%)

₋ No need for it (26.4%)

₋ No specific reason (10%)9.5%

11.8%

12.5%

13.2%

15.9%

17.1%

19.9%

21.3%

31.6%

33.9%

It should be easy to understand how the product

works

I should be able to get my money fast

It should be a product that is associated with a well

known

The contract should be well explained to me

I must know that my money is safe

It should be recommended by the newspaper,

radio and by official institutions

It should be offered and explained in a language

that I understand

I should trust the product

It should be recommended by

family/friends/others in the community

It should offer low fees and charges

Deciding factors for borrowing/loan product

• Low bank charges and recommendations from known sources are top deciding factors in choosing loan products

• However, other reasons such as knowing that the money is safe, ease of ability to get the money and easy to understand are also important

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Insurance

Insurance

36.2% .2% 63.6%

Insurance

formal informal no insurance

The Insurance Strand focuses on insurance products and services, resulting in the following

segments:

• Individuals who have/use formal insurance products/services

• Individuals who rely on informal mechanisms

• Individuals who have/use no insurance products/services

• 64% of the adult population have no/do not use any insurance products/services

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Main risks

Main risks that impacted on income levels in the

past six months

3

3

4

5

10

10

13

14

0 5 10 15

Harvest failure or losses of crop harvest

Death or illness of livestock

Other natural disasters (flood etc) which

effected my source of income

Loss of income from income earner

Increase in household size

Having to pay unforeseen school/education

fees

Rise in living costs such as rent, electricity,

fuel, food transport costs

Illness within your household or family that

required medical expensesMain risks include the

following:

• Unplanned events (such as

illness within household or

family that requires medical

attention)

• Rise in living costs

• Paying for unseen school/

education fees

• Increase in household size

Financial capability

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27

Financial planning

43.9

56.1

Planning spending of income in order for it to last until next income?

Don't plan

Plan

Financial literacy

.1%

.8%

.9%

1.0%

3.3%

3.7%

4.0%

5.4%

8.1%

13.1%

16.1%

17.3%

26.1%

.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Other loan products

Friendly societies

Investment products (eg Bonds)

Unit Trusts

No spontaneous mention of financial products

Short term insurance

Credit Card

Mobipay

Life insurance

Smart Card

Medical Aid products

Pension Fund products

Bank accounts

Financial Product Awareness

• Bank accounts have

the highest financial

product awareness

at 26%

• Pension fund,

medical aid and

smart card products

have high

awareness

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7.6%

4.4%

7.8%

14.3%

22.3%

43.7%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

Other

The bank

A financial advisor

My own information

Spouse/Parner

Relatives

Sources where financial information is obtained for making

important financial decisions

Sources of financial information

• The majority rely on their relatives or spouse/partner as a major source of information

for making important financial decisions

• 11% rely on formal sources like a financial advisor or a bank for obtaining information

on making important financial decisions

Conclusion

2012/03/29

29

Key take-outs

• Comparing 2007 and 2012 figures show a large increase in the percentage of adults that

are formally served - 65% of Namibian adults (727 736) are formally served

• This increase has been driven by:

– High uptake in transactional and savings products between 2007 and 2012

– Financial sector innovation through products and services, technology and expansion of the distribution footprint

– Increase in local economic activity in selected areas e.g. Ausenkehrn, Rosh Pinah, Erongowhich has in turn driven uptake in banking products

• Growth in banking infrastructure in general with increased branches, agencies and ATMs

• Insurance and savings products are the primary drivers of the non-bank formal products

• Financially excluded individuals are mainly engaged in credit and savings activities

• 31% of adults are financially excluded

– Affordability and a lack of financial resources are the key barriers that inhibit uptake of formal financial services for those that remain financially excluded

Conclusion

Key take-outs• Low levels of personal monthly

income

• Income received is mainly cash

monthly

• Losing the money through theft was

a significant concern

• Rising living costs have impacted

ability to make ends meet

• A large proportion of adults receive

money from others

• Increased uptake of formal

financial products and services

Opportunities• Appropriately priced, easy to

use products/services

• Safe, secure banking services

• Compelling value

proposition for receiving

salaries into a bank account

• Ability to send and receive

money to third parties

• Banking services within easy

reach of the population

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30

Conclusion

• Innovative new products/services - low cost, no minimum balance and allowing for long periods of inactivity on the account

• Technology innovation which allows for minimal administrative burden on customer, guaranteeing security

• Expansion in overall distribution footprint of formal financial services, especially through extensive Post Office branches

• Business model innovation

• Increase in economic activity, e.g. the mining sector

Uptake of financial services has been driven by ...

Thank you

www.finmark.org.za