Bank in new step to grow in Africa

WITH an estimated half a million Mozambicans living in South Africa, a major bank announced yesterday it was launching a low-cost money transfer service there as part of a strategy to strengthen its presence in the rest of the continent.

A year after launching its Zimbabwe money transfer service, FNB has added an additional across-border service to Mozambique.

This service is available to qualifying FNB customers in South Africa to send money to residents in Mozambique instantly, through its cellphone and online banking channels.

FNB cross-border remittances head Leonora van der Plas said the bank noticed with the FNB Zimbabwe money transfer service that there was a growing need for a remittance service that was readily accessible.

"People don't always have the time or money to travel to the bank during working hours and often need to send money home at short notice," Van der Plas said.

Launched a year ago, FNB has seen a 26% month-on-month growth in transaction volumes for its FNB Zimbabwe money transfer service.

With good customer feedback and 66% repeat usage, the service is showing solid growth.

The bank says although the World Bank estimated that around $220-million (R2.3-billion) was remitted to Mozambique from across the world in 2012, money transfer services to the country were not as developed as between other countries.

This results in people relying on informal channels such as taxis and friends or family.

FNB says these informal charges can be up to 20%.

"After Zimbabwe, Mozambique, as an SADC neighbour, seemed to be the next logical step to take the service."

FinMark 2012 estimates that 486000 Mozambicans live and work in South Africa, sending around R1.6-billion annually back home.

Meanwhile, Pick n Pay and MTN yesterday also announced a partnership. They say it will bring free money transfers to South African consumers, particularly those who are excluded from the formal banking system.

By signing up to a new Sim card, powered by MTN, and registering for "mobile money", customers will be able to access their accounts from their cellphones. - Business Reporter