France’s second-biggest listed bank, Societe Generale (SocGen), has introduced a digital wallet solution, YUP in a bid to meet its target of doubling its retail clients in sub-Saharan Africa to 2 million come 2020.
The French bank is optimistic about attaining a double-digit revenue growth in the continent, at a time when its peers such as Barclays and Credit Agricole are announcing plans to exit the continent so as to focus on core markets. Creating a solution that will cater for the unbanked is perhaps, a great way to capture the obviously deprived market.
Reuters reports that the digital wallet called ‘YUP’ was launched specifically for the African market. It was introduced to Ivory Coast and Senegal and there are plans to roll it out to four more countries by the end of 2018. The bank plans to gain 1 million wallet accounts by 2020.
YUP is built on technology from French startup firm TagPay. It will allow customers transfer money, receive cash and pay bills with a mobile phone. According to Alexandre Maymat, head of Societe Generale in the Africa/ Asia/ Mediterranean Basin & Overseas region, the solution is expected to break even in three years.
The banking industry in Africa is obviously experiencing an innovative disruption as different innovations are bfinding their way to the space. With the launching of YUP, it is obvious that the competition for relevance will thicken as the years go by.
FinTechs like Paystack and Flutterwave are already breaking grounds and changing how payments are made in Africa, but they are not tied to any specific bank. SocGen, having the backing of a banking institution, is surely going to be a force to reckon with. Although, the sentiments of being ours truly may be in favour of the other players (i.e. Paystack).
— Societe Generale Group (@SocieteGenerale) September 14, 2017
Maymahas said that SocGen will detail its ambitions in Africa come November when an overall group strategy plan has been scheduled to be released. Anyways, more players are welcome in the space, as they will help improve the economic growth of the continent.
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