1. Media Release by the Banking Association 18 May 2005
The Mzansi Account 1 Million Account-holders in Seven Months South Africa’s Banking Industry Makes Significant Inroads to Provide Access to Unbanked Population
Media Release by the Banking Association
18 May 2005
14/11/2018
Vers1.2

2. Agenda
Actively meeting Charter Objectives for Access to First-order Banking Services
International comparison: % Unbanked
Data profile
Performance Highlights
Product Performance
Profile of Mzansi Account-holders & Usage
Impact on existing business
Account Performance: Conclusion
Next Phases
Contact Persons

3. Actively Meeting Charter Commitments
The Banking Industry is elated to announce that in early May 1 million Mzansi Accounts had been opened;
Seven months after launched in October 2004
While we understand that even 1 million Mzansi Account-holders is just a start in the grand scheme of Charter objectives;
It is a great start for ensuring there is access to first-order banking for all South Africans

4. Actively Meeting Charter Commitments/2
The current trends and account dynamics are largely consistent with those presented at the half-million threshold in February:
Similar market demand, circa 6,000 accounts per day;
Similar contributions from each of the participants;
Similar proportions of new clients for each participant; and
Gender ratios consistent
Macro-objective: increase the ratio of banked/ unbanked from its odd-49% in 2004 to credible level
Recognition to Community, Labour & Government for their support in this achievement

5. Where is RSA in “Pecking Order” % Unbanked
India 80%
Egypt 77%
Poland 70%
Mexico 65%
SOUTH AFRICA 54% (48% - 15 May 2005)
Argentina 51%
Malaysia 45%
Ireland 37%
Australia 15%
Canada 15%
USA 12%
UK 09%
Germany 02%
Source: VISA International & Global Insights, 2004 data (Slightly dissimilar to FMT data, but offers international comparisons)

6. Where is RSA in “Pecking Order” % Unbanked/2
In past seven months an additional 4 percentage points (8%) of RSA population banked (via Mzansi Account):
[Excludes:
All other products from all banks and PostBank]
Places RSA at same level as Argentina and a step away from Malaysia and then Ireland

7. Data Profile Data is aggregated for the participant group
No data provided at individual participant level
Each bank & PostBank will provide their data as they see fit

8. Performance Highlights
Accounts opened
15 Nov ’04:
13 Dec ’04:
31 Jan ’05: 510,150
account-holders on 3 May 2005
Circa accounts being opened daily
Gender split: Majority female
Provincial distribution: 50% between Gauteng & KZN
New clients: 90% new to their particular institution
Average balance size: R 325
In past 30 days:
Deposits: almost 38% made a deposit
Withdrawals: 45% made a withdrawal
POS transactions: 1.4%

9. Product Performance and Client Profiles

10. Rate of Account Opening
@ 3 May industry had 1 million Mzansi Account-holders
On average 6,500 accounts per business day
Best month February
Decreasing trend (but still opening > 6,000 accounts daily)
Best day to date: 1 Feb: 9,271 accounts

11. Institutional Market Share
PostBank largest share of 28.2%, ABSA 26.9%
History shows that trends subject to competitive campaigning, e.g., single bank has opened on average 2,200 accounts every business day of April

12. Profile of Mzansi Account- Holders

13. Profile of Mzansi Account holders
Females still represent 54% of Mzansi Account holders
Large youth market – almost a third of account holders
Females between 25 and 54 represent almost 35% of account-holders
90.4% Black, Coloured 4.7% (up from 2.6% in January)

14. Provincial Distribution
Large concentration in Gauteng (29.8%%) and KwaZulu-Natal (17.5%)

15. Banked Status & Account usage profile
91.3% of Mzansi Account holders are new to their institutions. No indication of this trend changing
On average R 325 held on deposit in each Mzansi Account – this is up from R 280 in January indicating accounts being used more by savers
Total balances: R 325m
82.8% of accounts used in last 30 days up from 75.1% end of January
95% of accounts still have positive balances

16. Transaction volumes Increase in transactions per account holder
Withdrawals indicating accounts being used more regularly
Deposits decreasing due to take-up stabilising and fewer opening deposits being made
POS transactions still relatively low indicating banking needs primarily first order
Of concern rate of high transaction fees – 8.6%

17. Next Phases New features and functions Additional participants to join
Progress with finding a minimum standard for a payment mechanism for Mzansi Account
Mzansi Money Transfer Product launched in Q3/2005
Additional participants to join

18. THANK YOU

19. Contact Information
Colin Donian
Director: Mzansi Initiative