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The rise of the mass affluent in Africa and how banks can best respond to their needs (By Margaret Soi)

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11 months ago

on

Africa

The continent’s middle class is expected to spend US$2.1 trillion by 2025 and US$2.5 trillion by 2030, thus creating a further upward momentum in the demand for goods and services

Financial planning is of critical importance for this segment that also shows a keen response to incentives to bring about a holistic relationship

PORT LOUIS, Mauritius, December 13, 2023/APO Group/ — 

By Margaret Soi, Head of Offshore Banking – Mass Affluent Offshore

The purchasing power of Africa’s middle class is expected to grow significantly in the coming years: the continent’s middle class is expected to spend US$2.1 trillion by 2025 and US$2.5 trillion by 2030, thus creating a further upward momentum in the demand for goods and services.

In sub-Saharan Africa alone (excluding South Africa), a 2018 estimate reported over 100 million middle-class individuals with a total purchasing power of over US$400 million per day – with financial services, especially around wealth management and investments, expected to receive a boost from the massive growth in disposable incomes.

Surprisingly then, Capgemini’s 2022 wealth management executive survey found that only 27% of wealth management firms currently serve mass affluent clients, and only 36% firms are even exploring mass affluent services. No wonder then that banks believe that the mass affluent segment, representing those with investable assets more than US$50,000   and less than US$5m in wealth, is both undervalued, underinvested and underserved.

What does a typical mass affluent customer look like?

At the outset, it is important to note that this segment is financially and digitally savvy, is fee-sensitive, and likes to shop around for various options, not hesitating to spread their assets across providers. Apart from these generic characteristics that are true of the mass affluent in all parts of the world, Bank One’s experience of sub-Saharan Africa’s mass affluent segment shows us that a broad customer profile spans across any one or a combination of the following characteristics:

  • An individual who has bought properties and secure, low-yield assets such as treasury bonds within their shores, but now wishes to diversify their investments across other jurisdictions;
  • An individual who has children studying abroad or family living overseas and wishes to obtain a return on assets in such economies that offsets their expenses in the same jurisdictions;
  • An individual at a C-suite or senior management level in a company in Africa – who could currently be in Mauritius but might find themselves looking at a next posting in Kenya or Nigeria – and needs an offshore account that can move with them;
  • Such an individual could also be a business owner in a part of Africa that exports to different geographies across the region and is eying investments in those locations to offset expenses in these jurisdictions;
  • An individual who works in jurisdictions like the DRC or Nigeria where there are constraints on movement of foreign currency and who would prefer to invest in a jurisdiction where foreign currency can move more freely.

Needless to say, an individual who identifies with the above descriptions and aspirations would be considering banks in jurisdictions that support offshore banking, be it Singapore, Dubai, Hong Kong at a global level or a Mauritius and Seychelles at a regional level.

Why Bank One is in a prime position to serve the banking needs of the mass affluent?

While traditional banks in sub-Saharan Africa do see the promise of this emerging segment, they are simply not sure how to approach it. At Bank One, we have already crossed the first hurdle – that of definitively acknowledging that this segment exists in our region of operation – and have moved on to carving out a value proposition around their specific needs for banking services that Bank One is uniquely positioned to meet.

Indeed, Bank One considers itself to be in a prime position to deliver such services from our headquarters in Mauritius. We have rolled out our offerings for the mass affluent segment in the East African market since 2020 – taking advantage of the significant presence of our shareholders, I&M Holdings PLC and CIEL Group – and are currently targeting the Western and Southern African territories based on our acquired experience from East Africa. As the business grew, we decided to set up permanent resources in Kenya and Uganda alongside our seamless digital onboarding process, in adherence to the prevailing legal and regulatory requirements, which has endeared our solutions and made them more accessible to our clients.

We understand that we need to be proactive in serving the everchanging needs of mass affluent clients by providing banking solutions that resonate with their phase of life whilst helping them safeguard, invest and grow their assets.

With their rapid adoption of digital-first channels and self-service capabilities, this segment embarked on their first financial journey with FinTech firms that are thriving across the region. Hence, the mass affluent expect firms at a more mature stage of their financial planning, such as traditional banks, to offer personalised solutions and unique insights in order to see the value in such services. It is also evident that financial planning is of critical importance for this segment that also shows a keen response to incentives to bring about a holistic relationship – for example, offering better rates on mortgages if they maintain a certain threshold in assets under management with the same bank.

Finally, this segment values, above all, a consolidated and insightful view of their end-to-end financial situation, with technology touchpoints providing data-backed advice on how their assets should be managed. As a bank that wants to be successful in providing solutions and proactively managing clients in this market, these key considerations are cemented into our business strategy and ably executed by trusted advisors in the form of our dedicated relationship managers.

At a more holistic level, we recognize the importance of a customized approach to successfully provide banking and wealth products to mass affluent clients. Indeed, such value add could be as simple as helping them to understand how our offerings bring certain key benefits in their wake, which can help them achieve, and exceed, their financial goals – and acting as a partner in achieving their aspirations that are in turn fuelling the growth of the region at large.

 As a self-described ‘From Africa, For Africa’ banking institution, Bank One aims to unlock a world of opportunity for such upwardly mobile clients. For instance, our mass affluent clients are now able to access personalised offshore banking services – which was an offering previously available exclusively to HNWIs until recently. We have also proudly opened our doors to support such individuals in gaining access to global investment markets.

Distributed by APO Group on behalf of Bank One Limited.

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Yellow Card Secures Crypto Asset Service Provider Licence in South Africa

Published

24 hours ago

on

November 21, 2024

By

Yellow Card

Stablecoin adoption is surging throughout Africa, with sub-Saharan Africa having the highest adoption rate in the world at 9.2%

JOHANNESBURG, South Africa, November 20, 2024/APO Group/ — 

Yellow Card (www.YellowCard.io), Africa’s leading stablecoin-based infrastructure provider, has been issued a Crypto Asset Service Provider (CASP) licence by the Financial Sector Conduct Authority (FSCA) in South Africa.  

Commenting on the FSCA’s decision to issue the licence to Yellow Card Financial South Africa, Chris Maurice, Yellow Card’s co-founder and CEO, said, “The CASP licence underscores Yellow Card’s commitment to its customers in South Africa and regulatory compliance across the continent.This achievement reflects our dedication to providing secure, compliant and transformative solutions for our customers both in South Africa and across Africa.  

The CASP licence underscores Yellow Card’s commitment to its customers in South Africa and regulatory compliance across the continent

Stablecoin adoption is surging throughout Africa, with sub-Saharan Africa having the highest adoption rate in the world at 9.2%. In South Africa alone, where the number of total users of crypto assets is estimated to amount to 5.8 million people, stablecoins have experienced growth of 50% month over month since October 2023, displacing bitcoin as the country’s most popular cryptocurrency.  Yellow Card is excited to play a pivotal role in this financial revolution in South Africa. 

Yellow Card, which launched in South Africa in 2020, has facilitated over US$3 billion in transactions in the last several years and now operates in 20 countries across the continent. The company recently completed a US$33 million Series C financing, led by Blockchain Capital and existing investors, including Polychain Capital, Valar Ventures, Third Prime Ventures, Coinbase Ventures, and Block, Inc. (Square/Cash App), reflecting strong investor confidence in its mission.   

As the stablecoin landscape continues to evolve, Yellow Card is committed to leading the charge in making digital assets accessible and secure for businesses across Africa. With the recent licensing and funding, the company plans to expand its B2B offerings by enhancing its stablecoin rails, upgrading infrastructure, and advancing its B2B API and Widget. These efforts will empower businesses with seamless solutions for liquidity management and their general operations. 

To learn more about Yellow Card, visit: https://YellowCard.io/. 

Distributed by APO Group on behalf of Yellow Card Financial.

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Telecoming and MTN Partner to Launch cloud gaming in South Africa

Published

24 hours ago

on

November 21, 2024

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MTN Cloudplay will allow MTN users in South Africa to access a wide range of cloud-based video games, providing a high-quality gaming experience without the need for downloads or high-end gaming consoles

JOHANNESBURG, South Africa, November 20, 2024/APO Group/ —

  • Both companies extend their collaboration to introduce cloud gaming in South Africa.
  • MTN Cloudplay aims to revolutionize digital entertainment with affordable, high-quality gaming access.

MTN, Africa’s leading telecommunications operator with over 290 million subscribers across the continent, announces the launch of Cloudplay, a revolutionary new cloud gaming service, with Telecoming (www.Telecoming.com), a sportech company specializing in developing and distributing mobile experiences for sports and entertainment. This project marks a new milestone in the ongoing collaboration between the two companies.

MTN Cloudplay: A Game Changer

MTN Cloudplay will allow MTN users in South Africa to access a wide range of cloud-based video games, providing a high-quality gaming experience without the need for downloads or high-end gaming consoles. The service will allow customers to stream high-end PC games to their mobile phones, enabling them to play anywhere, anytime.

This service seeks to democratize access to high-quality mobile gaming for the whole family; including various genres which include retro games and exciting popular gaming titles with multi-device gameplay, at an affordable price of only R79 per month.

Jason Probert, General Manager for Digital Services at MTN South Africa shared his thoughts on the collaboration:

Customers can use their existing Steam licenses on the service, and have access to more than 300 games on the service for only R79 per month

“We’re thrilled to launch MTN Cloudplay in South Africa. We’re committed to enabling our customers to enjoy the benefits of a modern connected life and the advent of 5G means that it is now possible to stream and play games without the need for a PC or console. Customers can use their existing Steam licenses on the service, and have access to more than 300 games on the service for only R79 per month.”

Alí Karaosman, MEA Director of Telecoming says “It is very exciting for us to extend our collaboration with MTN, bringing our nearly decade-long experience in this market and supporting the operator in this innovative digital entertainment offering, we are convinced that MTN Cloudplay will revolutionize the way users in South Africa enjoy video games. For Telecoming, this partnership with MTN is a strategic step in our mission to bring esports and innovative digital services to Africa. We are committed to continuing to develop technological solutions that enhance digital leisure for people in the region.”

Service Details

MTN Cloudplay is available to all MTN users in South Africa since November 2024. With a vast library of over 340 games from over 50 publishers, this cloud gaming service offers an unmatched gaming experience on any device.

MTN Cloudplay is accessible to MTN subscribers. Users can visit https://Cloudplay.MTN.co.za to explore the platform and enjoy a wide selection of gaming titles.

Highlights

  • Extensive Game Library: Enjoy classics like Contra, PacMan and Mortal Kombat and modern hits like Hogwarts Legacy and Borderlands 3.
  • Bring Your Own License (BYOL): Access games you’ve purchased on Steam, such as Grand Theft Auto V and Fallout 4.
  • Multi-Device Access: Play on any device and switch seamlessly between them.
  • Low Latency: Experience responsive gameplay with minimal lag.
  • Subscription: Available directly on https://Cloudplay.MTN.co.za or via the MTN Play https://Play.MTN.co.za website for R79 per month.

Distributed by APO Group on behalf of Telecoming.

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rainx Launches the101 Range of 5G Fixed Wireless Access (FWA) Routers for Mobile Network Operators (MNOs)

Published

2 days ago

on

November 20, 2024

By

rainx

The industry’s smartest and most aesthetically pleasing 5G and Wi-Fi 7 router opens new opportunities for service providers globally

JOHANNESBURG, South Africa, November 20, 2024/APO Group/ — 

rainx, a leader in 5G Fixed Wireless Access (FWA) solutions, has launched the101 range (https://apo-opa.co/40UwYYE), an advanced ecosystem of fixed wireless 5G and Wi-Fi access products designed to meet the high standards of modern Mobile Network Operators (MNOs), Mobile Virtual Network Operators (MVNOs) and their customers.

This lineup includes the101 and the101 Pro 5G smart routers, the101 Xtender smart mesh Wi-Fi extender, and the101 Loop – a new category of product designed for today’s always-connected customer, powered by MediaTek. Together, these solutions redefine 5G FWA, enabling operators to enhance network quality, reduce churn, and drive new revenue streams. The routers also offer a collection of 101 skins to suit the users’ style, creating devices that are designed to be on show.

Targeted to the demands of the modern telco

As demand for 5G-enabled FWA continues to surge, MNOs face complex challenges in scaling network capacity and quality for fixed locations, while managing the concurrent load on mobile networks. Recognising this challenge, rainx has engineered the Customer Edge approach, an integrated ecosystem of products and services designed to empower operators to manage and optimise the customer experience. This begins with the101 range of 5G smart routers, which double as network probes, feeding real-time insights to theStation, a smart managed services platform.

theStation provides operators with deep network insights, enabling accurate, proactive decisions on coverage and capacity expansion. Operators can access detailed data on network performance in the home, including Wi-Fi clients, usage patterns, speed and latency – providing proactive support and direct customer communication through the101’s touch screen. This visibility gives MNOs comprehensive control over the entire FWA ecosystem, helping to streamline network load management, anticipate capacity needs, and deliver high-speed connectivity for both residential and commercial customers.

For end-users, the101 range provides an intuitive, self-service interface that empowers customers to manage their network in real time, minimising support needs and enhancing the overall customer experience.

Key Products in the101 Range include:

the101 Pro 5G smart router

Built for premium, high-demand users, the101 Pro offers advanced 5G capabilities with the new MediaTek (MTK) T830 platform that delivers sub-6Ghz 5G with speeds of up to 7 Gbps, Wi-Fi 7 and 300MHz 4 carrier aggregation. The routers offer a range of customisable skins to suit the users’ aesthetic preferences that bring the Pro’s screen to life. Its powerful hardware ensures optimal performance for bandwidth-intensive applications, including cloud gaming.

Our Customer Edge approach provides operators with the deep insights they need to make informed decisions on their networks

Ripple Messaging™ offers MNOs a direct communication channel to the device’s 2.1” touch screen for real-time support and service notifications. It includes a built-in speed test and a “Tap for Support” feature. Additionally, theStation’s managed services enable proactive device management, optimising performance with real-time updates to ensure continuous service quality and reducing operational costs.

the101 5G Smart Router

rainx’s mid-range offering is powered by an MTK T750 platform with 200MHz two carrier aggregation and AX3600 Wi-Fi 6. With a 1.8” touch screen display, it offers smart features like “Scan to Connect”, direct messaging and a built-in speed test. It’s available with a choice of 101 skins to suit customer tastes. the101 also offers managed services through theStation.

the101 Xtender Smart Mesh Wi-Fi

the101 Xtender broadens 5G coverage, enabling MNOs to deliver high-quality, uniform connectivity throughout larger spaces. As part of the mesh network, Xtenders integrate directly with 101 routers, allowing operators to address Wi-Fi coverage gaps and deliver a consistent, high-speed experience across homes or office spaces.

the101 Loop

A new portable 5G router designed for today’s always-connected consumer. With built-in 5G, a 5.5” LCD touch screen, 25W stereo sound and a cinematic camera, the Loop lets you connect in exciting new ways. MNOs can leverage the Loop’s multimedia capabilities to offer premium services, build customer loyalty and create new ARPU (Average Revenue Per User) opportunities through integrated 5G and Wi-Fi.

“Through smart hardware and services, we’re partnering with MNOs and MVNOs to unlock the potential of 5G,” said Brandon Leigh, Founder and Director of rainx. “Our ecosystem empowers operators to monetise latent 5G capacity, create new revenue streams, and addresses the shift from spiky mobile traffic to high, steady usage at fixed locations. Our Customer Edge approach provides operators with the deep insights they need to make informed decisions on their networks, manage the customer experience and generate ROI from 5G.”

“For customers, the 101range allows them to blend their aesthetic preferences with beautiful customisable skins, alongside high-performance engineering powered by the latest MediaTek CPE technology. the101 range delivers a reliable, high-speed connection that stays robust during periods of spiky traffic. The range also offers intuitive self-service features, allowing customers to easily monitor and control their router, reducing the need for support calls and creating a seamless, hands-on user experience that truly puts the power in their hands,” Leigh concluded. 

Rami Osman, Director of Business Development for MediaTek Middle East and Africa, said: “We are excited to collaborate with rainx to increase 5G FWA access across Africa, Asia and abroad to bring the benefits of fast, reliable connectivity to consumers and businesses. The MediaTek T830 has a highly integrated and compact design that provides big power savings and reduces development time and costs for customers like rainx.

“The MediaTek T830 chipset platform represents the latest advancements in both 5G and Wi-Fi connectivity and enables our customers to build extremely high-performance multi-gigabit 5G CPE products in the smallest form factors possible. Users can get a super-fast router at home of office that they can self-install and manage, reducing the lengthy installation times for fixed line broadband,” Osman said.  

Distributed by APO Group on behalf of MediaTek Inc..

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