1 / 19

Media Release by the Banking Association 18 May 2005

The Banking Association's media release celebrates reaching 1 million Mzansi Accounts in seven months, addressing unbanked population needs. The data profile, account performance, and impact on existing business are discussed, highlighting the positive growth. The significant achievement aligns with international benchmarks. The performance highlights include rapid account openings, gender ratios, and client profiles. The next phases aim to enhance features and introduce a money transfer product. Rising transaction volumes show increased account usage. Join the success story in advancing banking accessibility for all South Africans!

moyerr
Download Presentation

Media Release by the Banking Association 18 May 2005

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Mzansi Account 1 Million Account-holders in Seven MonthsSouth Africa’s Banking Industry Makes Significant Inroads to Provide Access to Unbanked Population Media Release by the Banking Association 18 May 2005 Vers1.2

  2. Agenda • Actively meeting Charter Objectives for Access to First-order Banking Services • International comparison: % Unbanked • Data profile • Performance Highlights • Product Performance • Profile of Mzansi Account-holders & Usage • Impact on existing business • Account Performance: Conclusion • Next Phases • Contact Persons

  3. Actively Meeting Charter Commitments • The Banking Industry is elated to announce that in early May 1 million Mzansi Accounts had been opened; • Seven months after launched in October 2004 • While we understand that even 1 million Mzansi Account-holders is just a start in the grand scheme of Charter objectives; • It is a great start for ensuring there is access to first-order banking for all South Africans

  4. Actively Meeting Charter Commitments/2 • The current trends and account dynamics are largely consistent with those presented at the half-million threshold in February: • Similar market demand, circa 6,000 accounts per day; • Similar contributions from each of the participants; • Similar proportions of new clients for each participant; and • Gender ratios consistent • Macro-objective: increase the ratio of banked/ unbanked from its odd-49% in 2004 to credible level • Recognition to Community, Labour & Government for their support in this achievement

  5. Where is RSA in “Pecking Order”% Unbanked • India 80% • Egypt 77% • Poland 70% • Mexico 65% • SOUTH AFRICA 54% (48% - 15 May 2005) • Argentina 51% • Malaysia 45% • Ireland 37% • Australia 15% • Canada 15% • USA 12% • UK 09% • Germany 02% • Source: VISA International & Global Insights, 2004 data (Slightly dissimilar to FMT data, but offers international comparisons)

  6. Where is RSA in “Pecking Order”% Unbanked/2 • In past seven months an additional 4 percentage points (8%) of RSA population banked (via Mzansi Account): • [Excludes: • All other products from all banks and PostBank] • Places RSA at same level as Argentina and a step away from Malaysia and then Ireland

  7. Data Profile • Data is aggregated for the participant group • No data provided at individual participant level • Each bank & PostBank will provide their data as they see fit

  8. Performance Highlights • Accounts opened • 15 Nov ’04: 100 000 • 13 Dec ’04: 250 000 • 31 Jan ’05: 510,150 • 1 000 000 account-holders on 3 May 2005 • Circa 6 000 accounts being opened daily • Gender split: Majority female • Provincial distribution: 50% between Gauteng & KZN • New clients: 90% new to their particular institution • Average balance size: R 325 • In past 30 days: • Deposits: almost 38% made a deposit • Withdrawals: 45% made a withdrawal • POS transactions: 1.4%

  9. Product Performance and Client Profiles

  10. Rate of Account Opening • @ 3 May industry had 1 million Mzansi Account-holders • On average 6,500 accounts per business day • Best month February • Decreasing trend (but still opening > 6,000 accounts daily) • Best day to date: 1 Feb: 9,271 accounts

  11. Institutional Market Share • PostBank largest share of 28.2%, ABSA next @ 26.9% • History shows that trends subject to competitive campaigning, e.g., single bank has opened on average 2,200 accounts every business day of April

  12. Profile of Mzansi Account- Holders

  13. Profile of Mzansi Account holders • Females still represent 54% of Mzansi Account holders • Large youth market – almost a third of account holders • Females between 25 and 54 represent almost 35% of account-holders • 90.4% Black, Coloured 4.7% (up from 2.6% in January)

  14. Provincial Distribution • Large concentration in Gauteng (29.8%%) and KwaZulu-Natal (17.5%)

  15. Banked Status & Account usage profile • 91.3% of Mzansi Account holders are new to their institutions. No indication of this trend changing • On average R 325 held on deposit in each Mzansi Account – this is up from R 280 in January indicating accounts being used more by savers • Total balances: R 325m • 82.8% of accounts used in last 30 days up from 75.1% end of January • 95% of accounts still have positive balances

  16. Transaction volumes • Increase in transactions per account holder • Withdrawals indicating accounts being used more regularly • Deposits decreasing due to take-up stabilising and fewer opening deposits being made • POS transactions still relatively low indicating banking needs primarily first order • Of concern rate of high transaction fees – 8.6%

  17. Next Phases • New features and functions • Progress with finding a minimum standard for a payment mechanism for Mzansi Account • Mzansi Money Transfer Product launched in Q3/2005 • Additional participants to join

  18. THANK YOU

  19. Contact Information • Colin Donian • Director: Mzansi Initiative • 082-456-7592

More Related