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Grants increase financial inclusion - survey

Johannesburg – South Africa’s banked population has grown substantially from 23.9 million people in 2012 to 27.4 million people in 2013, according to the FinMark Trust FinScope South Africa 2013 consumer survey.

The overall increase in the banked population has been driven by the roll out of the South African Social Security Agency (Sassa) MasterCard Debit cards and organic banking growth, according to Prega Ramsamy, CEO of FinMark Trust.

Since March 2012 10 million Sassa Debit MasterCard cards have been issued to grant recipients, following the introduction of a new grant disbursement system.

To Ramsamy this signifies strong growth in financial inclusion.

The FinMark Trust FinScope SA 2013 consumer survey measures and profiles levels of access to financial services among South Africans aged 16 and older, and highlighted.

The Sassa MasterCard Debit cards contributed 1.9 million people to the banked population in 2013.   

“The success of the Sassa Debit MasterCard card roll out is having a significant impact on the South African payments system and on socio-economic development,” said Philip Panaino, division president of MasterCard SA.

The system was introduced by Sassa to minimise fraudulent grant applications and collections and reduce grant administration costs by distributing all grant payments electronically.

The National Development Plan sets the target for the SA financial inclusion to reach 70% in the country by 2013. A target of 90% is set for 2030.

Access should, however, be accompanied by financial education, warned Ramsamy.

The survey also revealed that 65% of banked adults surveyed said that they prefer using bank cards instead of cash to make their purchases.

“It is clear that electronic payments are being embraced by millions of South Africans, who are now realising the benefits of a cashless society,” said Panaino.

“It is our goal to continue to grow financial inclusion both in South Africa and abroad by introducing innovative payment solutions."

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