FNB targets townships to defend against Capitec Bank, TymeBank, Bank Zero
The informal sector is underestimated in terms of its size… There is a huge number of these businesses… working on a cash basis only.GG Alcock
South Africa’s large banks, until recently, tended to ignore township businesses, which mostly operates in cash.
Now, market leader FNB, to defend against Capitec Bank and newcomers TymeBank and Bank Zero, has begun targeting unbanked township businesses with a host of financial products.
Less than half of South Africa’s almost six million micro-, small- and medium-sized businesses have a bank account.
Arabile Gumede (in for The Money Show’s Bruce Whitfield) interviewed GG Alcock author of “KasiNomics: African Informal Economies and the People Who Inhabit Them”.
Listen to the interview in the audio below (and scroll down for more quotes from it).
I know of township businesses turning over R7 million or R8 million per month but aren’t banked…GG Alcock
The reality is, the consumer is using cash… The cost to deposit cash is exorbitant… there’s a massive crime issue…GG Alcock
Social grants all go onto a debit card… None of the banks… have looked at how to get cash out of the system…GG Alcock
It’s not about the cost of the product. It’s about whether the product has been designed for the informal trader.GG Alcock
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