Standard Bank of South Africa’s E Plan: Harnessing ATM Technology to Expand Banking Services

Publication Date

July 2003

Author(s)

Caryn Bredenkamp, Jennifer S. Lobenhofer, Michael A. Stegman

Client/Funder

Ford Foundation

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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.