A Comprehensive Analysis of the Lower-End Banking Market in South Africa

A COMPREHENSIVE ANALYSIS OF THE LOWER-END BANKING MARKET IN in the south AFRICA Over 13 trillion people in southwest Africa are unbanked, which means that two out of every five South African adults have no access to orb financial services whatsoever. According to Falkena et al. (2004) the most prominent characteristics of the identify unbanked include the following: * Do not have whatsoever form of transactional account; * Are resident in sine qua nonon areas and townships; * Lack a steady cashflow; * Are mostly portentous or coloured; * 19% have neer had a bank account; * 3,6% are indirectly banked through both their families or a stokvel; * Have not prior interaction with banks; * Are not banking product literate. From the above, it is therefore recognised that it becomes embarrassing for people to participate in the formal economy without nearly form of access to the formal banking system. South Africa has one of the largest divides amongst the rich and the poor, and the lack of access to banking poses significant social challenges in addition to the more obvious threats to macro-economic sustainability (Keraan, 2010). According to Keraan (2010), South Africa has 19.6 million are unbanked, 2.9 million who were previously banked and 10.

2 million who are never banked. Increasing access to financial services would benefit the individual, the companionship and the service provider. The South African banking industry is dominated by a relatively small number of competitors, all with a similar range of products and services. The big four banks (ABSA, FNB, Nedbank and Standard Bank) account statement to 85% of banking assets, they were primarily focused on the higher income market, to the excommunication of the lover income market, as shown in Figure 1 (SARB, 2007) cited by Fick (2007). The greater percentage of adults with a bank account in the higher living standards measure (LSM) groups, in contrst to the much press down percentage in the lower LSMs. Figure 1:... If you want to get a full essay, order it on our website: Orderessay

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