Publication DateJuly 2003
Author(s)Caryn Bredenkamp, Jennifer S. Lobenhofer, Michael A. Stegman
Researchers examine the potential sustainability of the business model underlying the electronic banking product offered for low-income customers by South Africa’s second largest retail bank.
This paper describes the implementation and status of Standard Bank’s E Plan.
Standard Bank is South Africa’s second largest bank overall and its largest retail bank, with impressive market share across all income groups.
Reducing the costs of transactions through its ATM-reliant E Plan product, and changing distribution channels through the construction of kiosks called E Centres, the bank has managed to reach hundreds of thousands of new lower-income clients.
We examine the potential sustainability of the business model underlying E Centres, which depends on the sophistication of low-income and unbanked clients, their take-up rates, the cost structure, and achievable scale economies.