Low-cost digital financial services providers such as Discovery, ThymeBank and BankZero are targeting millennials, tech-savvy and cost-conscious South Africans.
Sunday 26, May 2019 BY KUDAKWASHE MUZORIWA
South Africa’s African Bank and Standard Bank have inaugurated low-fee, digital accounts in a sign of how competition from a new breed of cheaper, online-only rivals is driving change in the $30 billion financial service market.
The new accounts from the two lenders are the latest disruption to a market largely dominated by four big players Absa, FirstRand as well as Nedbank and Standard Bank.
Basani Maluleke, the CEO of African Bank, said, “The introduction of MyWORLD has elevated African Bank to a digital retail bank, offering a variety of products including transactional banking, personal loans as well as savings, investments and insurance.”
“Our increased and diversified product offering, underpinned by our Omni-channel platform, will enable us to compete favourably against the established and emerging banks,” said Maluleke.
Similarly, Standard Bank soft-launched its lowest-fee account, MyMo, which cost ZAR 4.95 per month and offering clients free mobile data or air time for transactions.
In a statement, African Bank said that MyWORLD has accumulated 12,000 users since its soft launch in mid-February.