A major new consumer and market insight report from multinational networking and telecommunications firm Ericsson titled Mobile Financial Services on the Rise reveals that nearly half of all consumers in Sub-Saharan Africa use mobile financial services in 2021 – a more-than three-fold increase in the last six years.
The Mobile Financial Services on the Rise report also highlights the impact of the COVID-19 pandemic on mobile financial services uptake, with 54% of consumers saying that they use mobile financial services transactions more now, and about 70% are more positive towards mobile financial services as a preferred contactless alternative to cash.
Report research was conducted by Ericsson Consumer & IndustryLab in early 2021, where it surveyed 3,200 consumers across six Sub-Saharan African countries – Senegal, Angola, Nigeria, Ivory Coast, Ghana, and Ethiopia – to assess the growth of mobile money services in light of technology and infrastructure gains across the region, as well as the COVID-19 pandemic’s impact on financial behaviour.
Faster Transactions are Favoured
The report highlights that users list faster transactions as the number one factor that would encourage them to use mobile financial services more often in the near future. About 70% believe that faster transactions would encourage them to use these services more while 51% highlighted higher security.
Most non-users are now aware of mobile financial services, with as many as 8-in-10 saying they are very interested to start using them.
“This new research underlines the significant empowering role that mobile financial services play in Sub-Saharan Africa, both in combating the impact of the pandemic and in fuelling economic development across Africa through the transformational potential of expanded and affordable access to financial solutions,” says Lucky La Riccia, VP and Head of Digital Services, Ericsson Middle East and Africa.
“Our aim is to support the digitalisation of Africa through technologies such as mobile broadband. Ericsson’s mobile financial solutions support this aim as we accelerate financial inclusion,” he adds.
CSPs Are the Most Popular Mobile Services Supplier
Communications Service Providers (CSPs) are the most popular mobile financial services supplier, with up to 90% of Sub-Saharan African mobile money users now adopting the technology through these companies.
Mobile financial services are currently enabling basic financial services such as withdrawal, transfer, storing money, as well as advanced services such as microfinance and insurance.
Ericsson’s mobile financial solutions are aimed at making management of financials as easy as sending a text so that banking can be conveniently brought to billions worldwide.