Friday , August 14 2020

CNB aims to defend cities from Kapitek Bank, TimeBank, Bank Zero

The informal sector is undervalued by its size … There are a huge number of these businesses … working only for cash.

GG Alcock

The big banks in South Africa have, until recently, tended to ignore business entities, which mostly operate in cash.

Now, CNN market leader, in order to defend himself from Kapitec Bank and newcomers TimeBank and Bank Zero, has started targeting unbalanced businesses with a range of financial products.

Less than half of the nearly six million in micro, small and medium businesses in South Africa have a bank account.

Arabile Gumete (in for Show for moneyE Bruce Whitfield) interviewed GG Alcock author of "KasiNomics: African informal economies and the people they live with"

Listen to the interview in audio below (and scroll down for more quotes).

I know that business in the city turns over R7 million or R8 million per month, but not bank …

GG Alcock

The reality is, the consumer is using cash… The cost of depositing cash is enormous… there is a massive crime…

GG Alcock

Social grants go to debit card … None of the banks … looked at how to get money out of the system …

GG Alcock

It is not about the price of the product. It is about whether the product is designed for an informal trader.

GG Alcock

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