Low-balance bank accounts — Part 2: Must banks collaborate to succed?

David Porteous

Journal of Payments Strategy & Systems, 2015, vol. 9, issue 3, 311-320

Abstract: Low-balance transactional accounts on their own probably lose money for most large banks. There may, nonetheless, be a business case to issue them. Forms of collaboration among issuers may help to reduce losses, even though collaboration may not be necessary to achieve success. This paper reaches these conclusions based on reviewing evidence of South Africa’s experience of promoting entry-level banking between 1994 and 2014 and, in particular, of the Mzansi basic bank account launched collaboratively by the four large commercial banks and the state-owned Postbank in 2005 in the context of other market dynamics.

Keywords: low-balance bank accounts; business case; Mzansi; collaboration (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hstalks.com/article/924/download/ (application/pdf)
https://hstalks.com/article/924/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:jpss00:y:2015:v:9:i:3:p:311-320

Access Statistics for this article

More articles in Journal of Payments Strategy & Systems from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().