The transfer of money by WhatsApp, Facebook and other social networks are still quite new in the world, but these services could be very successful in Africa in view of the strong interest of the population, mostly young, for social networks. For the banks, a little audacity could even allow them to take their revenge on the telecom operators and their Mobile Money.

Soon, for the African populations, social networks will no longer be just a tool that strengthens the power of communication, access to information or mobilization. Having contributed to freeing the voices of communities from injustices or poor governance, after breaking the control of governments over access to information and the dissemination of ideas, social networks should soon contribute to further progress. financial inclusion on the continent.
At the MEST Africa Summit, June 18-20, 2018 in Cape Town, South Africa, Julien Decot, Facebook’s Platform Manager for Europe, Middle East and Africa (EMEA), announced the WhatsApp’s exploration of a payment service.

Julien Decot: “We will do it in Africa too.”

The new service is in testing since February 2018 in India, where the application has nearly 200 million users, and Africa is in its sights. “We will do it in Africa too. In any case, it depends on how quickly we can do it. WhatsApp is on a scale where regulation is tricky, “said Julien Decot who pointed out that” with WhatsApp, more than a billion people could move a lot of money around the world and this financial transaction mode could easily become dominant in sub-Saharan Africa where WhatsApp is still largely the default social network. ”

Before WhatsApp, SnapChat was the first to break into the money transfer. The SnapCash service, launched in 2014 by the social network, targeted only Americans. But Facebook thought bigger. The company launched its money transfer service by Messenger in March 2015 in the United States, before exporting it over the years to France and England. A possible introduction to Africa was mentioned, but without further details. The Chinese social network WeChat has also embarked on the transfer of money. In November 2015, it signed a partnership agreement with Western Union allowing US users to send money to Western Union cash withdrawal points in 200 countries.
Apart from the direct transfer of money between individuals, social networks could also help banks to innovate while playing the card of proximity to consumers.

Apart from the direct transfer of money between individuals, social networks could also help banks to innovate, while playing the card of proximity to consumers.

A daring that is already showing some institutions and that could allow them to tease telecom operators who nibbled for a long time of beautiful market share of the financial sector with Mobile Money.

 

banks

Battered flat on their own ground by telecom operators, banks, who could only follow the trend of mobile banking with much delay, could hold their revenge on telecom companies with social networks.

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Some daring banks have already sniffed the vein

The Clickatell group has enabled Nigeria’s FirstBank to start Chat Banking on WhatsApp.

The bank by WhatsApp that is taking its first steps in Africa has indeed a good growth potential in view of the strong interest of the African population, mostly young, for social networks.

The bank by WhatsApp that is taking its first steps in Africa has indeed a good growth potential in view of the strong interest of the African population, mostly young, for social networks.

With a steadily increasing penetration rate, mobile, which is also the most popular way to access social networks on the continent, could allow banks to regain full control of the financial sector. A damn snub to their telecom rivals.

Africa currently has 135 Mobile Money services already in operation, representing 338.4 million customers.

Africa currently has 135 Mobile Money services already in operation, representing 338.4 million customers.

In 2017, the World Association of Telecom Operators, in its latest report on the global mobile payment industry, estimated at 1.2 billion the volume of financial transactions totaled by Africa for an estimated financial value of 19.9 billion US dollars. The continent is also 473 million Internet users including 202 million mobile social network users out of a total of 216 million registered. A figure that should grow over time with the improvement of broadband telecom networks across Africa.

Some daring banks have already sniffed the vein and have embarked on the still new segment, but that could prove to be the next evolution of online banking and proximity. In November 2018, the Clickatell group enabled Nigeria’s FirstBank to start Chat Banking on WhatsApp. Innovation provides an opportunity for millions of new bank customers to experience a way to securely access banking services day by day through this application. “This feature allows FirstBank customers to manage their banking needs within their WhatsApp conversation with the same efficiency as the USSD. Customers can add First Bank’s published WhatsApp phone number or a direct link to First Bank’s “Verified” profile to start a secure Chat Banking session, “Clickatell said, adding that the new application, FirstBank, can offer to its clients a full range of banking options that can be launched via WhatsApp.

« Cette fonctionnalité permet aux clients de FirstBank de gérer leurs besoins bancaires au sein de leur conversation WhatsApp.»

Customers can check their balance, make transfers and payments, and benefit from a variety of other digital products and services that are instantly accessible.

“Customers can add First Bank’s published WhatsApp phone number or a direct link to First Bank’s” Verified “profile to begin a secure chat banking session.”

Prior to FirstBank, it was Union Bank of Africa (UBA) that offered the services of Clickatell Transact to offer banking via WhatsApp. In March 2019, innovation shifted to Zimbabwe, where Steward Bank adopted it with the technical support of Facebook, WhatsApp’s parent company.

In March 2019, innovation shifted to Zimbabwe, where Steward Bank adopted it with the technical support of Facebook, WhatsApp’s parent company.

Since 2013, numerous studies in Kenya, Tanzania and India have clearly shown that social networks will play a major role in boosting banking sector revenues. According to the American Bankers Association, “you’d have to be crazy not to use social networks to build customer loyalty and win new ones,” when the numbers on the volume of users of these platforms are so convincing. This is very little cost incurred and the opportunity to reach a large and rapidly growing audience.

Agence Ecofin

About The Author

CEO AfrikaTech

Comme beaucoup de personnes j’ai connu l’Afrique à travers des stéréotypes : l’Afrique est pauvre, il y a la guerre, famine… Je suis devenu entrepreneur pour briser ces clichés et participer à la construction du continent. J’ai lancé plusieurs entreprises dont Kareea (Formation et développement web), Tutorys (Plate-forme de e-learning), AfrikanFunding (Plate-forme de crowdfunding). Après un échec sur ma startup Tutorys, à cause d’une mauvaise exécution Business, un manque de réseau, pas de mentor, je suis parti 6 mois en immersion dans l’écosystème Tech au Sénégal. J’ai rencontré de nombreux entrepreneurs passionnés, talentueux et déterminés. A mon retour sur Paris je décide de raconter leur histoire en créant le média AfrikaTech. L'objectif est de soutenir les entrepreneurs qui se battent quotidiennement en Afrique en leur offrant la visibilité, les connaissances, le réseautage et les capitaux nécessaires pour réussir. L'Afrique de demain se construit aujourd'hui ensemble. Rejoignez-nous ! LinkedIn: https://www.linkedin.com/in/boubacardiallo

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