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Kenya top in affordable financial services

  • Kenya has been ranked first in a survey by a US-based think tank that examined access to affordable financial services.
  • Tanzania and Indonesia were found to have the best regulatory environment of the 21 countries surveyed.
MOBILE MONEY IN TANZANIA

MOBILE MONEY IN TANZANIA

The country achieved the overall top score for its financial inclusion efforts in the 2015 Brookings Financial and Digital Inclusion Project Report which is published by the Brooking s Institution, largely due to the growth of its mobile money market.

21 Countries were ranked on four aspects of financial inclusion, including country commitment, mobile capacity, regulatory environment and the adoption of traditional and digital financial services. Of these categories, Kenya ranked first only in adoption.

Kenya earned 89 per cent overall, followed by South Africa (80 per cent), Brazil (78 per cent), Rwanda and Uganda (75 per cent each), and Chile, Colombia, and Turkey (74 percent each).

The use of mobile money transactions has been on the rise in Kenya since its inception. Data from the Kenya National Bureau of Statistics indicate that in 2014, mobile money subscriptions reached 26.0 million, representing a penetration rate of about 60 per cent of the total population.

Cash deposits made through mobile money agents reached Sh1,269 billion in 2014, up from Sh1,033 billion in 2013, while total transfers increased by 24.7 per cent to Sh2,372 billion up from Sh1,902 billion.

Kenya was cited for allowing both banks and non-bank institutions, including mobile operators, to offer financial services. In 2012, for example, M-Shwari was launched in Kenya as a partnership between the Commercial Bank of Africa and Safaricom to offer interest-bearing accounts and microloans, reaching an increasing number of unbanked people.

South Africa was ranked top for mobile capacity, defined by indicators like the extent of 3G mobile network coverage, ease of mobile payments, and the number of active mobile money services in each country. Kenya was ranked second, tied with Indonesia, Bangladesh, Colombia, Rwanda, and Afghanistan.

Tanzania and Indonesia were found to have the best regulatory environment of the 21 countries surveyed, according to the report.

Regulatory environment indicators included non-bank led mobile financial services, regulations governing e-money, the inter-operability of mobile money platforms, client identification (know-your-customer) processes, and cash-in/cash-out capability at agent locations.

Tanzania, Rwanda and Uganda were among seven countries ranked joint top for country commitment.

Mpesa, the first mobile cash transfer service in Kenya, was launched by Safaricom in 2007. Earlier this year, Equity Bank, the latest entrant in the mobile banking market, launched a special thin SIM card that allows the bank’s customers to access the lender’s mobile virtual network without parting ways with the existing telecom operators.

Other highlights of Kenya’s performance metrics include twelfth place for country commitment and third place for regulatory environment.

The country also had the highest rate of mobile money account ownership of the FDIP countries, as well as a regulatory environment that promotes entry of bank and non-bank providers in the market and diverse offerings such as mobile savings and credit products.

According to the World Bank Global index database which is sited in the report, South Africa, which was ranked second overall in the Brookings study, had 75 percent of adults with bank accounts and five percent with non-bank financial products, while in Kenya 55 per cent of people aged 15 and above have a bank account.

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Posted by on September 2, 2015 in Business News

 

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Press Release:Dun & Bradstreet Promises Most Comprehensive Credit Bureau in Tanzania


L-R Adrian Pillay (GM Business Development), Adebowale Atobatele (GM Tanzania Bureau) Miguel Llenas (C.E.O) at the Dun & Bradstreet Credit Bureau Workshop in Dar es Salaam recently.

Participants at the Dun & Bradstreet Credit Bureau (T) Limited Workshop

Press Release

Dun & Bradstreet Promises Most Comprehensive Credit Bureau in Tanzania

FINANCIAL institutions in Tanzania are set to enjoy better protection from loan defaulters following the announcement that Dun & Bradstreet Credit Bureau, a company licensed by the bank of Tanzania to provide credit reference services in Tanzania announced that it will commence operations in a few weeks.

The workshop which was attended by Senior Executives of Banks and Financial Institutions in Tanzania, also had in attendance representatives of the Bank of Tanzania, and the International Finance Corporation who graced the event as observers and promoters of the credit reference system in Tanzania.

Speaking at the workshop, General Manager, Dun & Bradstreet Credit Bureau Tanzania Limited Mr. Adebowale Atobatele, explained that with the use of a credit report in the assessment of loan applicants, banks and financial institutions can easily estimate the credit worthiness of loan applicants thereby ensuring that they approve the loans of only those who they (banks) consider to have the propensity to repay based on their credit history.

Speaking further on the benefit of credit reporting, Mr. Adebowale Atobatele said, “The benefits of credit reporting are multi-dimensional. For example, banks and financial institutions, they can expect to make accurate risk predictions, prevent loss, reduce their NPL ratio and increase their ability to lend to a broader risk segment, Also, with a good credit report, consumers can expect to have their loan applications objectively reviewed, they can expect to have easy access to credit and build a strong reputation collateral.”

Speaking during the opening of the workshop D&B Chief Executive Officer (CEO) Miguel Llenas said, “Our aim is to build the most comprehensive Credit Bureau in Tanzania thereby playing a significant role in boosting Tanzania’s economy and financial soundness. We are in Tanzania to help improve the lending culture. We want to see a situation where people develop a culture of repayment not only because it is morally right to repay loans but because it is in the best interest of the economy.”

Credit bureaus, established by Dun & Bradstreet, have reduced the information asymmetry between lenders and borrowers thereby creating transparent and efficient credit information system.

Dun and Bradstreet Credit Bureaus Tanzania Ltd. will work closely with Central Banks, commercial banks, financial institutions, insurance companies, economic development boards and various government entities and to build a robust credit information infrastructure for Tanzania.

Nevertheless Mr. Adrian Pillay General Manager Dun and Bradstreet Credit Limited named some D&B Credit Bureaus implementations as Credit bureau of Nepal, CRB that is in Sri Lanka, Emcredit that is in Dubai, Credit Reference Company that is in Nigeria and iScore in Egypt.

Participants at the workshop expressed hope, that with the presence of Dun & Bradstreet Credit Bureau in Tanzania, the country’s financial sector will be further protected from collapse.

 

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African Cities Become Next Frontier For Business

African cities are the next big markets for investors thanks to the rising consumer spending and massive infrastructure investments.

According to a new report by the Economist Intelligence Unit, eight of the world’s 20 fastest growing economies will be African.
Tanzania not in the list.

“A recent survey conducted by The Economist Group of 217 global companies based in 45 countries revealed that expansion in Africa is a priority for two thirds of them within the next decade,” notes the report released last week.

The report notes that although Africa’s growth story has revolved around commodities, Africa’s growth is now becoming more diverse because of the “peace dividend” being realised after years of armed conflict and military rule that has given way to democracy.
rapid urbanisation

There is also rapid urbanisation as half of all Africans are under 20 and are rapidly moving to cities. According to the Habitat, more than 40 per cent of Africans now live in urban areas.

Other growth drivers include improved governance because of greater accountability that comes hand-in-hand with democracy, and the slow strengthening of institutions; growing trade that is replacing aid, thanks to the growing trade relations with China.They also include the rise of technology exemplified by the rise in the number of mobile subscribers in Africa that exceeded the 0.5 billion mark in 2010, allowing companies greater access to consumers.

The infrastructure investment largely by Chinese companies is improving the state of roads, airports, and railway lines, fixing critical infrastructure component that is attracting foreign investors and sparking more domestic investment.
highetst potential

MasterCard African Cities Growth Index 2013 indicates that Accra, Lusaka and Luanda, the capital cities of Ghana, Zambia and Angola respectively, as the Sub-Saharan African cities that have the highest potential for growth over the next five years.

The index was developed in the final quarter of last year and analysed 19 cities across Sub-Saharan Africa ranking them according to their growth potential between last year and 2017.

“Growing urbanisation, combined with the fact that the center of global economic gravity is shifting to dynamic emerging markets such as those found in Africa, means that the continent’s cities will play a much bigger role in driving the economic growth of their respective countries,” said Michael Miebach, president, MasterCard Middle East and Africa.

Among the 25 cities that the Economist Intelligence Unit’s report identifies as being the growth frontiers include Cape Town, Durban, Johannesburg, Nairobi, Tunis, Dakar, Cairo, Tripoli, Addis Ababa and Casablanca among others.

And as for Dar ES Salaam. Let us hope for the best. I would love to see it on the list.

 

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Commonwealth Bank app all ‘Facebanking’ on Facebook

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Picture: Anthony Reginato
ONE of Australia’s Big Four banks yesterday opened a branch in one of the last locations you’d expect: Facebook.

The new social banking app, developed by the Commonwealth Bank, will let users make payments to friends, fund events and handle everyday banking transactions without leaving Facebook’s website, but social media experts have warned that “Facebanking” may not be popular with all internet socialites.

CommBank online banking general manager Drew Unsworth said Kaching for Facebook was an extension of its smartphone apps, and was designed to let users pay back money owed or make cash gifts to friends for birthdays and weddings.

But Mr Unsworth admitted using a social network to balance the books might initially sound like a risky investment.

“When people first hear about it they think all their financial details will be on their (Facebook) wall, but that’s not right,” Mr Unsworth said.

“There’s probably a misconception about what’s on Facebook and what Facebook has access to. They won’t have access to financial information sitting on there.”

Commonwealth Bank customers must choose a four-digit PIN and register a mobile phone to use the service for security, to receive SMS confirmation codes, and Mr Unsworth said the bank offered a “100 per cent security guarantee” to cover losses from unauthorised transactions.

“We’ve got a lot of monitoring around this type of transaction,” he said. “To make it work really well there’s a lot of stuff that happens behind the scenes.”

Facebook is regularly a target for hacking attempts, with 206 phishing attempts verified by online security firm Phishtank in January, and “malicious content” hidden in some web links, according to Websense.

Deakin University social media lecturer Ross Monaghan said security concerns, although dismissed by the bank, could dissuade some users from banking on Facebook.

He said others would choose to avoid “Facebanking” simply to avoid mixing their personal life with their finances.

“People don’t go to Facebook for financial transactions, they go there to interact with family and friends, so it seems like an odd mix,” he said. “I’m not sure whether people would be comfortable making all their transactions through Facebook.”

Read more: http://www.news.com.au/technology/commonweatlh-bank-app-all-facebanking-on-facebook/story-

 
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Posted by on March 6, 2013 in International News, Uncategorized

 

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Women Leaders: Hillary Clinton to charge $200,000 per speaking appearance

As we approach the month of March, a month where we celebrate women and mothers. I will be posting news on Women achievements. Be it a woman entrepreneur, A Leader, an artist. Every woman who is on top of her game we shall celebrate her in MonFinance.

So to start, we all know and love the work of Former US Secretary of State Hillary Clinton.

Hillary has signed up for speaking circuit and will charge a whooping USD 200,000 per speaking appearance, making her one of the highest paid public figures on such appearances.

Notably her salary as the Secretary of State, which she relinquished less than a month ago was USD 186,000.

“Now that she’s out as Secretary of State, Hillary Clinton isn’t going to be hurting for money, thanks to speaking fees of more $200,000 per speaking appearance, according to a source familiar with the situation,” Buzzfeed reported.

Clinton will be represented by the New York-based Harry Walker agency, which also represents her husband Bill Clinton, the former US President.

According to CNN, Clinton gave 471 paid speeches during his 11 years as a private citizen and raked in an average of USD 1,89,000 per event – joining the speaking industry’s rarefied six-figure circle occupied by Arnold Schwarzenegger, Al Gore, Dick Cheney and Sarah Palin.

Clinton, however, according to Politico, will do some speeches pro bono, particularly those for the charities and causes she champions. She will also be involved in non-profit works.

Impressed? Share a story with us about any woman you admire.

This article is courtesy of 8020Fashions under WomenCelebrations2013 event.

Join us and other women on Sunday 03March2013 at Diamond Jubilee VIP Hall for a fee of 30,000 per Woman.

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Posted by on February 28, 2013 in Articles

 

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Barclays Finance Director to step Down

Source: Telegraph

The finance director of Barclays is to step down from his role after six years at the bank.

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The bank confirmed last night that Chris Lucas will retire, as will Mark Harding, the lender’s general counsel.
Mr Lucas is one of the last executives still at the bank from the era of former chief executive Bob Diamond and was one of a collection of senior employees who waived his 2012 bonus after Barclays was fined £290m for its part in the Libor-rigging scandal.

The finance director is also one of four current and former employees under investigation by the Financial Services Authority over Barclays £7bn capital raising in 2008 that saw Qatari investors support the bank. One of the allegations against Barclays is reported to be that it lent Qatar money to fund the investment.

There is no suggestion that Mr Lucas or any of the three others under investigation are guilty of wrongdoing and Barclays said the departure of Mr Lucas, who is 52, is unconnected to the investigations.

Mr Lucas has been considering his future for the last few months on grounds of health, amid the desire of Antony Jenkins to overhaul Barclays after he took charge as chief executive last year.

Mr Jenkins said that Mr Lucas and lawyer Mr Harding felt it was the “right time for them, personally and professionally, to pass the baton on in their respective roles”.
He added: “Chris and Mark both expressed to me late last year that they were considering stepping down from their roles at Barclays.
“The rationale which each shared with me was consistent and, typically, grounded in wanting to do what is best for the bank. Their decision to retire was theirs alone.”

Mr Lucas could stay at the bank for up to a year as Barclays hunts for a replacement. Barclays has appointed headhunters to lead the search for a new finance director and is likely to turn to a candidate from outside the bank to replace Mr Lucas.

Mr Lucas has been working at Barclays for the second time in his career, after being employed at the bank as a global relationship partner between 1999 and 2004. He also worked as UK head of financial services and global head of banking and capital markets at PricewaterhouseCoopers.

Mr Lucas is paid an annual salary of £800,000 at Barclays and earned almost £4m in each of the last two years, including bonuses and deferred share awards. Barclays is yet to determine whether he will receive compensation upon leaving the bank.

On top of the departure of Mr Lucas, Barclays will be in the spotlight on Tuesday when Mr Jenkins and the bank’s chairman, Sir David Walker, appear in front of the Parliamentary Commission on Banking Standards.

 
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Posted by on February 4, 2013 in International News

 

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Should You Trust Credit Card Comparison Websites?

Submitted by Guest Blogger: Andrew Black

Credit card comparison Websites are gaining popularity among consumers these days. The sites are designed to help people find the best deals when it comes to choosing any of available credit cards. Logically, using such resources is for consumers who do not have enough time and patience to do the tedious and long process of finding and comparing credit cards.

What most users like about credit card comparison sites is that they can determine some of the best deals in the market in no time. It may take only a few minutes or even seconds to take results. The competition among those Websites has also intensified as more and more new sites arise. Thus, you will find most of those having several other add-on features that will surely be useful.

Are those credit card comparison Websites to be trusted? There are questions and doubts about the reliability of such services. Meticulous individuals, of course, will not easily trust and rely such sites. But many can attest having found the best and most reasonable credit card products in the market through the guidance of such comparison sites.

The pros of credit card comparison sites

Credit card comparison Websites are best for taking a starting point for gaining an overview of the current credit card market. It is a fact that there are numerous credit card products available from various providers today. It can be quite confusing to determine which among those offers and provides good deals. It does not help that the cards are actively and creatively marketed. Comparison sites disregard the marketing ploys and tactics and focus on the basic information like interest rates, terms, fees, and penalties.

To provide better perspectives to consumers, most credit card comparison shops also post actual reviews of various cards from actual users and independent parties. Consumers are supposed to obtain more information and insights about owning and using specific credit cards. Moreover, some comparison sites try to broaden their coverage by comparing other financial products like mortgages, bank deposits, and insurance policies.

Most credit card comparison sites can be accessed and used for free. That is why you can possibly use two or more of those sites at a time. It is advisable to also compare results generated by such comparison Websites. This way, you can easily and clearly determine which products really stand out in the market.

The cons of comparison sites

Credit card comparison sites may have several disadvantages. First, some sites feature calculators and other services that require filling out fields with consumers’ basic personal information. Some sites use this as a strategy to get email addresses and phone numbers, which they eventually use to pursue and contact potential customers.

Second, there is no assurance that comparison sites cover all the existing credit cards in the market. This is why many consumers still do not trust and rely on those sites. In some cases, the best deals are found on manual comparisons, which on the other hand require more effort and time.

Andrew has been blogging about finance and debt management for over 4 years. Andrew specializes in low documentation loans and personal loans. Feel free to follow Andrew’s latest post on Facebook

 
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Posted by on November 15, 2012 in Articles

 

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