African Mobile Money Providers To Earn USD 1.5B By 2019

African Mobile Money Providers To Earn USD 1.5B By 2019

From telecompaper

Mobile money providers will earn an estimated USD 1.5 billion in fees from such things as bill payments and sending money to relatives in sub-Saharan Africa by 2019, according to the Boston Consulting Group.

Although mobile financial services are emerging all over the world, sub-Saharan Africa’s unique circumstances, a combination of a mostly “unbanked” population and heavy mobile-phone penetration, have turned the region into an early adopter of mobile banking and a test bed for the technology’s potential.

Eight of the ten countries that make the most use of mobile financial services are in Africa, and sub-Saharan Africa has the highest proportion of active accounts (43 %). Revenues will grow as Africa’s “unbanked” use their phones to pay bills, save money, and take out loans. As this trend takes hold, there will be opportunities for banks and MNOs. Africans are looking for more-secure ways to borrow and save money and are open to other financial products delivered using mobile phones, including loans and insurance.

With the population in sub-Saharan Africa growing and becoming wealthier, the number of people aged 15 or older with an individual annual income USD 500 or more will rise to more than 460 million by 2019. This trend is likely to strengthen as governments in sub-Saharan Africa increasingly focus on their education, health, and security systems, enhancing the potential for long-term economic growth in their countries.

According to BCG, there will be some 400 million mobile-phone subscribers and almost 150 million traditionally banked sub-Saharan Africans by 2019. This will leave about 250 million people aged 15 or older who have incomes of USD 500 or more and mobile phones but no traditional bank account. To succeed, banks and MNOs will need to invest in infrastructure, business capabilities, and governance.

Read more at telecompaper