South Africa’s First National Bank (FNB) has launched a cross border money transfer platform to Mozambique, allowing the country’s diaspora to remit money home.
HumanIPO reported last year the bank had launched a similar platform allowing transfers to be made to Zimbabwe.
The company said it has seen 26 per cent month-on-month growth in transfers since the launch of the service.
“We have seen with the FNB Zimbabwe Money Transfer service that there is a real need for a remittance service that is readily accessible,” said Leonora van der Plas, head of Cross-border Remittances at FNB. “People don’t always have the time or money to travel to the bank during working hours and often need to send money home at short notice.”
The World Bank estimates over US$22 million was remitted to Mozambique during 2013, however money transfer services in the country are not as advanced as others in the region, resulting in individuals making use of taxis or friends to transport the money.
According to FNB the charges for these informal services can be as much as 20 per cent of the amount being remitted.
“After Zimbabwe, Mozambique, as a SADC neighbour, seemed to be the next logical step to take the service,” said van der Plas. “A service that allows for instant, affordable money transfer and is more secure than informal channels, should be well received.”
In Zimbabwe the bank partnered with retailer OK, however its presence in Mozambique allows the company to make use of its own infrastructure.
The transfer platform is based on a tiered pricing system with the first ZAR1000 (US$94) costing ZAR45 (US$4) to remit, ZAR2000 (US$188) costing ZAR75 (US$7) and ZAR3000 (US$283) costing ZAR105 (US$10).
“FNB Cellphone Banking and Online Banking allow senders to transfer Mozambican Meticais to Mozambique, instantly, wherever they are. It is in line with the bank’s strategy to increase service options on our various digital channels,” said van der Plas.
