Standard Bank, a South Africa-based financial services company, recently partnered with Systemanalyse und Programmentwicklung (SAP), a Germany-based business software provider, to launch AccessBanking, a new service that enables low-income people in South Africa without access to traditional banking services to set up bank accounts with Standard Bank using their mobile phones [1]. According to Peter Wharton Hood, the deputy chief executive of Standard Bank, by being able to set up a bank account without having to travel to a major city, AccessBanking is not only “far more accessible for customers,” but also “80 percent cheaper” than conventional banking services [2]. AccessAgents, who are deployed in promotional tents and local stores throughout rural areas of the country, can efficiently sign up new subscribers via an SAP-enabled application on a mobile phone in eight to ten minutes. Subscribers simply need to provide proof of residence and identification, and then choose either a “pay as you bank” model with no monthly fees, or a premium account with differing degrees of monthly fees and added services. After signing up for AccessBanking, subscribers also receive a debit card, which can be used as “AccessPoints” at approximately 5,000 locations across the country to deposit or withdraw cash, make money transfers and purchase prepaid electricity or mobile telephone airtime. According to Willie Stegmann, Director of the Core Banking Transformation Program at Standard Bank, “5,000 new customers per month have opened an [AccessBanking account] since March 2012” and “another 3.5 million…accounts were moved onto the Access system” during a restructuring of the company in April 2013 [1].
As of year-end 2012, Standard Bank has total assets of ZAR 557 billion (USD 65.6 billion), market capitalization of ZAR 191 billion (USD 22.5 billion), return on equity (ROE) of 14.4 percent, approximately 1,250 branches and 8,500 automated teller machines (ATMs) on the African continent and operations in 18 countries around the world. SAP has total revenues of EUR 7.66 billion (USD 10.1 billion), total operating expenses of EUR 6.01 billion (USD 7.9 billion), approximately 65,000 employees and 249,000 customers in the first half of year 2013 and total assets of EUR 26.9 billion (USD 35.5 billion) in the year 2012.
By Michael Averell, Research Associate
About Standard Bank
Established in 1862, Standard Bank is a South Africa-based financial services company that offers personal and business banking, corporate banking, investment banking and wealth management services. Standard Bank also trades under the name Stanbic. As of year-end 2012, Standard Bank has total assets of ZAR 557 billion (USD 65.6 billion), market capitalization of ZAR 191 billion (USD 22.5 billion), return on equity (ROE) of 14.4 percent, approximately 1,250 branches and 8,500 automated teller machines (ATMs) on the African continent, operations in 18 countries and holds ratings of BBB by Fitch, Baa1 by Moody’s and BBB by Standard & Poor’s.
About Systemanalyse und Programmentwicklung (SAP)
Established in 1972, Systemanalyse und Programmentwicklung (SAP)is a business software provider based in Walldorf, Germany. The company has total revenues of EUR 7.66 billion (USD 10.1 billion), total operating expenses of EUR 6.01 billion (USD 7.9 billion), approximately 65,000 employees and 249,000 customers in the first half of year 2013 and total assets of EUR 26.9 billion (USD 35.5 billion) in the year 2012.
Sources and Additional Resources
[1] Bank Systems & Technology.com: “Reaching the Unbanked in South Africa,” http://www.banktech.com/core-systems/reaching-the-unbanked-in-south-africa/240157919#prclt-l24R1hl8
[2] SAP Press Release: “Standard Bank and SAP Bring Mobile Banking to Over Half a Million “Flip-Phone” Customers in South Africa via SAP Mobile Platform,” http://www.sap.com/corporate-en/news.epx?PressID=20415
MicroCapital story, November 1, 2011, “MICROCAPITAL BRIEF: Standard Bank: Majority of Africans Lack Access to Microfinance, Other Financial Services,” https://www.microcapital.org/microcapital-brief-standard-bank-majority-of-africans-lack-access-to-microfinance-other-financial-services/
MicroCapital story, March 9, 2012, “MICROCAPITAL BRIEF: Telefonica’s “mWallet” to Enable Mobile Payments in South America, Europe,” https://www.microcapital.org/microcapital-brief-telefonicas-mwallet-to-enable-mobile-payments-in-south-america-europe/
MicroCapital Universe Profile: Standard Bank https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Standard+Bank
MicroCapital Universe Profile: Systemanalyse und Programmentwicklung (SAP) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SAP
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