Tuesday, March 8, 2011

Low Banking Usage in Sub-Saharan Africa Creates Mobile Opportunity

Sub-Saharan Africa has the lowest deposit institution penetration in the world standing at an average of 16.6 percent compared to 63.5 percent in other developing countries, the African Development Bank says. “It is this gap in the financial services market that is creating a unique niche for mobile phone banking to develop on the continent, enabling a growing number of people to access financial services for the first time,” ADB says.

Even Africans with bank accounts often face high charges for moving their cash around, due to high transaction costs. It is this gap in the financial services market that is creating a unique niche for mobile phone banking to develop on the continent.

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