Survey: Banking growth has not boosted savings in South Africa

Wednesday, November 5, 2014

JOHANNESBURG – The number of banked South Africans has grown to 27.4 million over the past ten years, or about 75% of the total adult population, according to research from FinMark Trust.

The FinScope South Africa 2014 consumer survey reveals that over the past ten years, the growth in financial inclusion from 61% to 86% has been driven by increased access to banking products and roll out of South African Social Security Agency (SASSA) grant payments.

Thirty-four percent of the banked population own a SASSA Mastercard, with Mzansi accounts representing 6% of the market in 2013 and 4% in 2014. Growth in banking is driven mainly by ownership of ATM and debit cards.

The survey is based on a nationally representative sample of 3 900 adults who are 16 years or older and reflects their perceptions of their own financial inclusion.

Speaking at the launch of the survey on Tuesday, CEO of TNS South Africa Rob Powell said that the focus was shifting to the quality of financial inclusion rather than financial inclusion itself.

While South Africa would easily reach the National Development Plan (NDP) target of 90% financial inclusion by 2030, that did not necessarily mean people were benefiting from the financial products they had, Powell said.

Source: Money Web (link opens in a new window)

financial inclusion, savings