Many take South Africa’s ATM network for granted – simply insert a card and withdraw money. GAVIN REUBENSON, Group CIO, Paycorp, outlines what it actually takes to deliver cash to 17 million South Africans on the first of every month.
It starts very early in the morning on the first working day of every month: 17 million South Africans go to their nearest ATM to withdraw their government (SASSA) grant. It almost doesn’t matter what time you get there, you’ll find a queue of South Africans waiting for their turn at the ATM.
The image below shows the extent to which SASSA withdrawals on the 1st dwarfs those transactions done by other cardholders, and certainly dwarfs the peak that happens on the 25th of each month when the majority of South Africans get paid by their employers. The blue portion of the graph represents SASSA withdrawals; the orange is normal business.
The annual Finscope survey released in November last year reported that 34% of people – that’s 6.1m South African grant recipients – withdraw all their money on payment day every month regardless of the fact that they could withdraw it in small increments during the course of the month, or even use their SASSA cards as debit cards at point-of-sale.
It helps to understand that SASSA’s electronic payment system represents the first time many people have had access to any kind of banking system. We’re beginning to see a change in behaviour; we see more people withdrawing two or three times a month as they learn to trust electronic banking, although it has to be said that recent uncertainty regarding SASSA administration does have a knock-on effect.
Leaving that aside, these newly-banked customers are not the only ones who’ve had to adapt since the grant payment system went electronic in Q1, 2012.
As a company whose primary purpose is to connect people to their money and businesses to their customers, we rate service very highly so we don’t like to see long queues at our ATMs. Like everyone else, we’ve had to get used to it on SASSA payment day.
We’re much more concerned with ensuring that there will be enough cash for every SASSA cardholder at every one of our 5,500+ ATMs. Reliability is our number one priority – people need their cash, and we’re going to make sure they get it!
When SASSA first went electronic there was significant pressure on the national payment system which put strain on everyone, and we all had to adapt very quickly. At Paycorp we were quick to update and reconfigure our cash forecasting systems to ensure that we could service the increased withdrawal volumes and values.
Whilst Paycorp has always been about financial inclusion, moving government grants from cash to electronic through the SASSA card added a new dimension by helping to drive financial activity in remote communities. This is not just because more cash is being circulated. For merchants who have in-store ATMs, 30 – 40% of cash withdrawn from their ATM will be used in their store and therefore the money stays in the local community.
With every local ATM we install – and the majority of our installations are in rural and peri-urban areas – we know that we’re contributing to the local community’s reduction in travel time to access an ATM, which is now down to below 30 minutes. Seventeen years after deploying South Africa’s first independent ATM, nothing is more satisfying than seeing how the addition of an ATM makes life easier for individual South Africans, promotes business growth, and builds local economies.
AppDate: Reserve Bank to choose fintech winner
This week, SEAN BACHER highlights the Global Fintech Hackcelerator, Fortnite’s skin for the Samsung Galaxy Note 10, Standard Bank and iiDENTIFii’s partnership, WRAPP and Zulzi’s latest expansion.
SARB to choose Global Fintech Hackcelerator winner
The South African Reserve Bank will host a Fintech Demo Day on 29 October 2019 to select two winners from 12 innovative and sustainable fintech solutions shortlisted for the Global Fintech Hackcelerator @ Southern Africa.
In August, SARB joined forces with KPMG Matchi to run the 2019 Global Fintech Hackcelerator @ Southern Africa, an acceleration programme that creates a platform for fintech firms to demonstrate their innovative solutions to complex financial challenges in the Southern African region. Fintech firms from all over the world were invited to submit an application in response to problem statements constructed in collaboration with SARB.
The regional hackcelerator received 95 entries from interested fintech firms located across the globe. The 12 shortlisted respondents will showcase their solutions at the Fintech Demo Day at the end of this month in Johannesburg.
Each Global Fintech Hackcelerator @ Southern Africa 2019 winner will receive the following:
- A stipend towards travel expenses to attend the 2019 Singapore Fintech Festival
- An opportunity to pitch their solution live during the Hackcelerator Demo Day at the 2019 Singapore Fintech Festival and engage with industry experts
- Funding to develop a contextualised proof of concept, to be deployed within a year from the demo day
- An opportunity to work with high-value corporates to contextualise a solution to their needs, while obtaining market entry into the Singapore and Asia-Pacific region.
The top three winners at the Singapore Fintech Festival will each receive a cash prize.
For more information on the Global Fintech Hackcelerator click here.
Click here to read about a Fortnite exclusive for Samsung Galaxy Note 10 users, and Standard Bank’s new way of identifying its customers.
PC market grows again
Worldwide shipments of traditional PCs, comprised of desktops, notebooks, and workstations, reached 70.4 million units in the third quarter of 2019 (3Q19), according to preliminary results from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker. Demand in the commercial segment combined with trade tensions between the United States and China to drive the market forward, resulting in a second consecutive quarter of growth with shipments increasing by 3% over the third quarter of 2018.
Jitesh Ubrani, research manager for IDC’s Mobile Device Trackers, says: “With higher tariffs on the horizon PC makers once again began to push additional inventory during the quarter though the process was a bit more difficult as many faced supply constraints from Intel, leaving AMD with more room to grow. The trade tensions are also leading to changes in the supply chain as most notebook manufacturers are now prepared to move production to other countries in Asia, such as Taiwan and Vietnam.”
“Commercial demand should accelerate as enterprises work through the remainder of their Windows 10 migration,” says Linn Huang, research vice president, Devices & Displays. “The number of months until the end of service (EOS) date of Windows 7 can be counted on one hand. With January 14, 2020 drawing nigh, the commercial market should be able to digest the extra inventory over the next several quarters. Supply constraints may loom in subsequent quarters, so excess may not be a bad position for channel inventory through the remainder of the year.”
Traditional PC shipments in Asia/Pacific (excluding Japan) posted a year-over-year decline but the market performed above expectations. Back-to-school demand drove the consumer market in China, while online sales and preparations for the Diwali festive season supported consumer shipments in India, as two of the largest countries in the region surpassed the previous forecast. Meanwhile, the commercial market in China recorded a decline in line with expectations, impacted by macroeconomic pressures.
Coming in slightly above forecast, the Canadian traditional PC market delivered its 13th consecutive quarter of growth. The market is becoming increasingly solidified as the top 5 vendors now capture more than 85% of all shipments.
In Europe, Middle East and Africa (EMEA), the traditional PC market achieved stable growth in 3Q19 with both desktops and notebooks performing relatively well. A strong pipeline of deals ahead of the ongoing Windows 10 transition continued to translate into commercial strength, offsetting the softness in the consumer market and the overall negative impact of the component shortage.
In Japan, both the commercial and consumer markets largely outperformed forecast, driven by Windows 10 migration and the consumption tax increase respectively. Commercial shipments established a new third quarter record beating the mark set in 2013 when Windows XP EOS created similar momentum in the commercial PC market.
The traditional PC market in Latin America was very much in line with previous expectations of a 4.1% year-over-year decline. During this period desktop shipments were better than expected mainly due to the large enterprise segment and verticals such as banking, retail, and manufacturing. Notebook shipments also declined during the quarter due to a weak consumer market and delays in some education deals.
The United States saw low single-digit growth in the third quarter with both desktop and notebooks seeing continued year-over-year growth. Inventory pull-in continued to be supported by Windows 7 EOS and continued tensions in the trade war. As most List 4 tariffs have been delayed until the end of the year, inventory pull-in overall was slightly weaker compared to the previous quarter. According to a recent survey among IT decision makers in the USA, more than 60% of businesses have transitioned their Windows-deployed PCs from Windows 7 to Windows 10. Another 13% plan to do so by the Windows EOS date in January 2020.