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

Enjoy The Money Show, but miss it sometimes?

Get the best bits emailed to you daily, right after it ends:

Subscribe to our Business Wrap Newsletter


Recommended

by NEWSROOM AI
Read More
Liberty is using Vitality without permission to sell their product! - Discovery

Liberty is using Vitality without permission to sell their product! - Discovery

Arabile Gumede interviews Discovery Life chief executive officer Hylton Kallner on The Money Show.

How to start saving and investing money

How to start saving and investing money

Unless you're über-rich, saving money is a must. But it’s not easy. Arabile Gumede talks to personal finance expert Warren Ingram.

'Get as much money offshore as you can as quickly as possible'

'Get as much money offshore as you can as quickly as possible'

It started with Steinhoff, then just kept going. South Africa is becoming uninvestable, warns consultant Nick Pitro.

Liberty Holdings reports huge jump (51%) in profits

Liberty Holdings reports huge jump (51%) in profits

Arabile Gumede interviews David Munro (CEO at Liberty Holdings) on The Money Show.

Paying with a debit card? Don’t expect a refund on it when returning items

Paying with a debit card? Don’t expect a refund on it when returning items

Merchants are not allowed to process refunds on debit cards, warns consumer journalist Wendy Knowler.

8 tips and tricks to cut your cost of living

8 tips and tricks to cut your cost of living

Personal finance expert Warren Ingram discusses ways to reduce your monthly expenses.

Popular articles
'My child went to an Afrikaans school'  Panyaza Lesufi says not 'anti-Afrikaans'

'My child went to an Afrikaans school' Panyaza Lesufi says not 'anti-Afrikaans'

Lesufi has been responding to the building of a new Afrikaans university in Pretoria by trade union Solidarity.

Panyaza Lesufi takes a swipe at private Afrikaans university under construction

Panyaza Lesufi takes a swipe at private Afrikaans university under construction

Gauteng Education MEC says there is no room in a non-racial South Africa for reminders of apartheid.

[WATCH] Thieves running off with a shack has Twitter puzzled

[WATCH] Thieves running off with a shack has Twitter puzzled

Khabazela shares tweets and Facebook posts that have gone viral.

[WATCH] Man and woman assaulting a motorist goes viral, for the wrong reasons

[WATCH] Man and woman assaulting a motorist goes viral, for the wrong reasons

Khabazela shares tweets and Facebook posts that have gone viral.

Public Protector to challenge Estina Dairy Farm High Court ruling

Public Protector to challenge Estina Dairy Farm High Court ruling

Tiso Black Star's Karyn Maughan explains why the Busisiwe Mkhwebane has chosen to dispute Judge Ronel Tolmay's judgment.

[WATCH] Young boy's school concert dance moves delights Twitter

[WATCH] Young boy's school concert dance moves delights Twitter

Khabazela shares tweets and Facebook posts that have gone viral.

What is better - money in the bank or investing in shares?

What is better - money in the bank or investing in shares?

Personal finance expert Warren Ingram offers a definitive answer with an explanation ordinary people can understand.