Mobile operators and banks must work together if they are to launch successful mobile money offerings, according to panelists at the VAS Africa summit in Johannesburg.
According to the panelists, the main obstacle to the launch of viable mobile money services currently is the tension between banks and mobile operators, with banks wanting to “protect” their market and keep telcos out.
“The two players generally clash,” said Zanele Midi, head of strategy and business development for mobile money at MTN South Africa.
The panelists agreed banks and operators need to focus on working together and finding solutions that present value for both parties.
“From the outset when mobile money came to Kenya, the banks were worried about the mobile money operators,” said Robert Ruara, M-Pesa product development manager at Safaricom, adding as the operators and banks started to form partnerships, mobile money took off.
“Customers using M-Pesa are now going one step further and opening bank accounts,” Ruara said as an example of how both parties can benefit.
Partnering banks and telecoms should look into producing mobile money products which facilitate the transfer of money from a mobile wallet to a bank account; and offer the possibility of opening a bank account via a mobile device, Ruara said.
“I think working together is something that needs to happen,” said Prithesh Ragoobeer, head of internet banking :PBB Africa at Standard Bank.
“In Kenya, the SME offering means small traders can move money from M-Pesa to their bank account,” Ragoobeer said.
“It’s impossible for one party to work without the other. They have to work together,” said Ruara.
“When the parties accept that, they’re ready to move forward.”
Midi said multi-party partnerships also hold much potential, with specialist service providers brought in to a solution to offer their unique service.
“We’ll [the operator] worry about distribution and access challenges. You worry about selling to clients and running the specialist service,” Midi said.
