Finance

SSA/Open banking : 46 % of bank clients want data shared with third-parties (PwC)

Thursday, 08 December 2022 15:48
SSA/Open banking : 46 % of bank clients want data shared with third-parties (PwC)

(Ecofin Agency) - In Sub-Saharan Africa, close to half of bank clients agree to their data being shared with financial services providers. 

According to a report released on November 14 by audit, consulting and advisory firm PricewaterhouseCoopers (PwC), 46% of banked adults in sub-Saharan Africa are willing to share their banking data with third-party players as part of an open banking system under certain conditions.

The report is based on a survey conducted between September and October 2022 among a sample of 1,357 people over the age of 18 in three countries representing three sub-regions: South Africa (Southern Africa), Nigeria (West Africa) and Kenya (East Africa).

Respondents who agree to share their banking data cite trust in third-party actors (16%), attractive benefits (15%), or both attractive benefits and trusted third-party actors (15%) as conditions.  

Open banking is a system that allows banks to share, subject to account holders’ consent, their client data with third-party actors such as financial technology companies (fintech), neobanks, other banking institutions, payment service providers or even web giants such as Google, Apple and Facebook.

The aim of this system is to allow consumers to benefit from better and more affordable products and services that are in line with their specific needs. In such a system, a couple can, for example, use an app that analyzes their finances to create a monthly budget while an entrepreneur can connect accounting software to their bank account to fulfill their accounting obligations.

Cash remains the preferred payment mean 

The survey also reveals that 39% of respondents are not willing to share their data even if it provides certain benefits and 15% are undecided and say they are still weighing the pros and cons of open banking.

Regarding payment methods, the report highlights that cash remains the preferred payment method for Africans (33.4%) ahead of debit cards (27.1%), non-bank institutions’ e-wallets (15.3%), credit cards (11.9%) and banks’ payment apps (7.1%).

In South Africa, debit cards are used by 45% of respondents, due in part to the high rate of bank penetration. In Kenya, non-bank institutions’ e-wallets dominate (76%) thanks to the growth of the M-Pesa mobile payment service developed by Safaricom.

However, contactless mobile payment seems to be gaining ground. 63% of respondents already use their cell phones to pay or plan to do so in the future. The number of respondents already using cell phones for point-of-sale payments in Kenya (69%) is almost double the number in South Africa (28%) and Nigeria (39%).

For online purchases, 43.8% use debit or credit cards, while 19.7% use mobile payment services such as M-Pesa, Apple Pay, and Samsung Pay. 14% of respondents use online payment platforms and 11.9% use bank transfers.

Regarding the Buy-Now-Pay-Later (BNPL) model, 58.7% of respondents do not use this segment of consumer credit that allows for delayed payment, and only 13.8% report using it regularly.



 
Telecom


 
Public Management


Ecofin Agency covers the news from 9 business sectors in Africa: Public management, Finance, ICT, Agribusiness, Electricity, Mining, Oil and Gas, Comms and Laws. Ecofin Agency is also creating and management specialized medias, in paper and on the web/social networks, for institutions or African publishers.

AGENCE ECOFIN

Mediamania Sarl
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11

REDACTION
redaction@agenceecofin.com

Public management
Aaron AKINOCHO
Borgia KOBRI
Moutiou ADJIBI

Finance
Idriss LINGE
Walid KEFI
Chamberline MOKO

Agribusiness
Espoir OLODO

Electricity
Gwladys JOHNSON

Oil and Gas
Olivier DE SOUZA

Mining
Louis-Nino KANSOUN

ITC 
Muriel EDJO

Comms
Servan AHOUGNON

Cameroon
Brice R. MBODIAM
Sylvain ANDZONGO
Monique MAY
Julienne Rose SENDE

Togo
Fiacre E. KAKPO
Waliyullah TAJUDEEN
Séna AKODA

Niger
Sandrine GAINGNE

Gabon
Stephane BILLE
Pierre-Celestin ATANGANA

Desk
Stéphane ALIDJINOU
Souha TOURE
Vahid CODJIA
Diane ZODEHOUGAN
Hikmatu BILALI

Translation
Schadrac AKINOCHO
Mouka MEZONLIN
Firmine AÏZAN



Digital
Omar SOKHNA
Mamadou DIOP
Bacary MANE
Abdel Razak MOULIOM

Digital Marketing
Jérémie FLAUX
Geraud ACHI
Jean Christian BERNARD
Franck FOUTE

Web publishing
Bakoly RAHARISOA
Rina RAMANANDRAISOA
Hasina RAJEMISON

Development
Dominique FLAUX

 


 
REGIE COMMERCIALE
AGENCE ECOFIN
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11
Fax: +41 22 301 96 10

Benjamin FLAUX
bf@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72

Voir page 
Nos services
 

 










 



Ecofin Agency is a news agency for economic and sectorial information. It was created in 2010 and it website was launched in June 2011.

Please publish modules in offcanvas position.