US-China trade deal: 3 fundamental issues remain unresolved
The U.S. and China have reportedly reached a so-called phase one deal in their ongoing trade war.
By David Whitehouse
Posted on Thursday, 28 November 2019 08:50
South Africans are significantly less confident that financial services can help make the country more prosperous compared with Kenyans and Nigerians, according to the Financial Prosperity Barometer published on November 25 by online payment service provider PayU.
In Kenya, 77% of respondents believe that greater access to financial services increases the country’s prosperity, a view shared by 72% in Nigeria.
That level of positive sentiment fell to just 63% in South Africa.
Nigerians are often portrayed as being reluctant to adopt financial services, in particular insurance.
In fact, South Africans now take the dimmer view of long-term financial planning.
The figures reflect the disillusionment among South Africans with existing financial-services provision. PayU’s survey echoes the findings of the South African Banking Sentiment Index from BrandsEye.
Cash usage continues to grow in the South African economy at a rate of 6-10% per year, faster than inflation, according to The Future of Payments in South Africa from Deloitte in September.
Without solutions that address customers’ needs, “digital adoption will be constrained and the cash reliance cycle will continue,” Deloitte said.
Though South Africa has strong mobile phone penetration, many of the phones in use are feature phones, rather than smart phones, which do not support mobile banking, Deloitte says.
Innovative payment and financial services offerings are needed which use simpler formats for sending transaction instructions, and which can be handled by feature phones.
Bottom Line: More innovative products and better digital infrastructure are needed to shake up financial services in South Africa.
The Africa Report uses cookies to provide you with a quality user experience, measure audience, and provide you with personalized advertising. By continuing on The Africa Report, you agree to the use of cookies under the terms of our privacy policy.
You can change your preferences at any time.