mzansi will put full service banking with 15km of the vast majority of south africans

MEDIA RELEASE - Johannesburg, 15 October 2004

Commercial banks are now well set to provide the vast majority of low-income earners in South Africa with an ATM within 10km of their homes and a full banking service within 15km, according to Charles Chemel, Co-ordinator: Access Initiatives of the Banking Council.

“The fact that the Financial Sector Charter initially required services within 20km of their homes is a good indication of the seriousness that banks have placed on aggressively addressing this challenge,” says Chemel.

The Mzansi Account is the result of the major banks working collectively to provide a standard for new bank accounts, which is affordable, readily available and suits the specific needs of the previously unbanked communities. Each bank will establish its own pricing competitively.

The collaboration between the banks has allowed Mzansi account holders to make use of any of the participating banks’ ATMs at no additional cost – effectively creating a network of over ten thousand ATMs across the country and extending the banking platform to the greater community. This is augmented by point of sale functionality available at retailers.

Chemel says the banking sector is aggressively pursuing new ways of making banking easier and more affordable for lower income earners. Specific initiatives include working together with Government both through its institutions such as Postbank and by seeking regulatory changes to improve accessibility through the revision of the FICA section 17 exemption, which is expected to be published shortly.

This effort is in line with the Financial Sector Charter, which requires banks to make banking more accessible to the nation and, specifically, to increase banking reach to all communities.

“Given the disparate nature of the population, the logistical challenges are daunting in both deep rural areas and previous black townships. Banks have recently stepped up their investment in ATMs in the township areas considerably and are experimenting with new, cheaper branch formats aimed particularly at rural areas,” says Chemel.

“While the banks have committed to deliver the distribution necessary to meet their obligations, the inclusion of the Post Office allows us to take this so much further,” he adds.

“We are delighted therefore to have the Postbank confirm its participation in Mzansi. The addition of its vast Post Office network to the existing branch and ATM networks of the major banks, as well as other delivery innovations from the banking sector such as mini ATMs and container branches, will extend the formal banking sector to most corners of the land,” he adds.

Charles Chemel

Cellphone : 083 307 2820

E-mail: mediaenquiries@banking.org.za