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in Under Two Minutes — an Introduction to our Engagement Banking Platform
In most countries in the region , telecommunications companies own the customer share of wallets more than anywhere else in the world . In many cases , the one connection to the internet that a household has is on a single mobile phone . This is often a feature phone , without apps , or a very rudimentary smartphone . The mobile network operators facilitate that connection to the world . Everything from the ability to speak to family , to access education , make purchases , and even run businesses – which are often small subsistence enterprises .
On the topic of what this means for banks and FinTechs seeking to expand their reach into Africa , Custers says : “ Telcos have become the dominant force across various countries . It didn ' t take very long for them to realise that if they own the customer connections , as soon as they unlock the ability for that customer to transact , save , or even borrow , using their platform without a bank account – because over 50 % of the continent is still unbanked – they would be able to own the customer entirely .”
“ That ’ s when banks started to realise that they either needed to radically transform digitally and go beyond banking , or partner with telcos or risk their connection to their customers being eroded .”
92 October 2021