The full spectrum of financial services
The bank employee talking to Christian Wessels
"It bothers me sometimes that so many people still talk about Africa only in terms of development aid, because it's changed: Africa is a lot more advanced these days," Financial Services Partner Christian Wessels recently told Deutsche Welle TV, Germany's international broadcasting station.
He would know: For over a year now, Christian and his team have crisscrossed sub-Saharan Africa, talking to chief bankers in big cities as well as to farmers, artisans and housewives in remote rural villages of Ghana, Tanzania, Kenya and Nigeria.
Working toward financial inclusion
Their goal: financial inclusion, i.e. finding innovative ways to provide millions of Africans with reliable access to affordable financial services, starting with savings accounts. After all, sub-Saharan Africa is the least banked region in the world: 80% of its population or about 400 million adults lack access to a bank account. For most poor households, using savings to pay for large purchases is cheaper and more efficient than taking out a loan. This is according to the Bill and Melinda Gates Foundation, for whom Christian did Roland Berger's first financial inclusion project in Ghana.
Acting as the intermediary
In a Deutsche Welle TV broadcast, we see Christian returning to Ofada in Southern Ghana. When he first came here in the spring of 2010, people were very skeptical of institutional banking, relying rather on private money collectors who charge high fees for their service. It was the Ofada village leader's decision to open a (cost-free) bank account that swayed the other inhabitants into doing the same. Today, more than half of the village population has a savings account.
According to Christian, development workers and bankers have been talking at cross-purposes for a long time, and this is where Roland Berger is stepping in. "We are translating a development need into concrete business opportunities, convincing banks in Africa through our business cases that you can actually earn good money offering mass banking to the poorer population." In Ghana, for instance, Roland Berger client Ecobank Transnational now sends mobile bank clerks to the countryside, riding their bikes from village to village and collecting peoples' savings, whatever their size.
He would know: For over a year now, Christian and his team have crisscrossed sub-Saharan Africa, talking to chief bankers in big cities as well as to farmers, artisans and housewives in remote rural villages of Ghana, Tanzania, Kenya and Nigeria.
Working toward financial inclusion
Their goal: financial inclusion, i.e. finding innovative ways to provide millions of Africans with reliable access to affordable financial services, starting with savings accounts. After all, sub-Saharan Africa is the least banked region in the world: 80% of its population or about 400 million adults lack access to a bank account. For most poor households, using savings to pay for large purchases is cheaper and more efficient than taking out a loan. This is according to the Bill and Melinda Gates Foundation, for whom Christian did Roland Berger's first financial inclusion project in Ghana.
Acting as the intermediary
In a Deutsche Welle TV broadcast, we see Christian returning to Ofada in Southern Ghana. When he first came here in the spring of 2010, people were very skeptical of institutional banking, relying rather on private money collectors who charge high fees for their service. It was the Ofada village leader's decision to open a (cost-free) bank account that swayed the other inhabitants into doing the same. Today, more than half of the village population has a savings account.
According to Christian, development workers and bankers have been talking at cross-purposes for a long time, and this is where Roland Berger is stepping in. "We are translating a development need into concrete business opportunities, convincing banks in Africa through our business cases that you can actually earn good money offering mass banking to the poorer population." In Ghana, for instance, Roland Berger client Ecobank Transnational now sends mobile bank clerks to the countryside, riding their bikes from village to village and collecting peoples' savings, whatever their size.
Financial inclusion was the team's initial business focus
Full range of financial services on offer
In fact, the project for the Gates Foundation in Ghana opened doors for our Financial Services team in sub-Saharan Africa. "They were very happy with what we did and directly recommended us for a similar but much larger project at Tanzania's largest bank, and to an assignment in Nigeria," explains Project Manager Benedikt Wahler.
Financial inclusion was the team's initial business focus. Given the vast catch-up potential that Africa's retail banking market holds, it continues to be a key strategic topic in the region. Far from being pro bono projects, this is where the future of African banking will be decided, as highlighted by Equity Bank of Kenya. Starting out as an almost bankrupt building company, they fully focused on the mass market. Growing more than 50% per year over the last decade, they are now East Africa's largest bank.
The team likes to compare the situation in Africa to that of Europe in the 19th century. At the time, the big private or merchant banks in the cities were disinclined to cater to village laborers or farmers. "The cooperatives and savings banks founded in Germany back then today earn two-thirds of the entire market revenues and rob the likes of Deutsche Bank of a strong home market," says Benedikt. "And this is what we try to bring home to the large banks in sub-Saharan Africa: It is dangerous to neglect the business potential generated by medium and low incomes."
Putting Roland Berger on the map in sub-Saharan Africa
Taking an innovative, business-focused approach to a topic that had been occupied by NGOs and small microfinance outfits has boosted Roland Berger's reputation in the region and equipped the team with an understanding of the realities and opportunities African banks face.
In fact, the project for the Gates Foundation in Ghana opened doors for our Financial Services team in sub-Saharan Africa. "They were very happy with what we did and directly recommended us for a similar but much larger project at Tanzania's largest bank, and to an assignment in Nigeria," explains Project Manager Benedikt Wahler.
Financial inclusion was the team's initial business focus. Given the vast catch-up potential that Africa's retail banking market holds, it continues to be a key strategic topic in the region. Far from being pro bono projects, this is where the future of African banking will be decided, as highlighted by Equity Bank of Kenya. Starting out as an almost bankrupt building company, they fully focused on the mass market. Growing more than 50% per year over the last decade, they are now East Africa's largest bank.
The team likes to compare the situation in Africa to that of Europe in the 19th century. At the time, the big private or merchant banks in the cities were disinclined to cater to village laborers or farmers. "The cooperatives and savings banks founded in Germany back then today earn two-thirds of the entire market revenues and rob the likes of Deutsche Bank of a strong home market," says Benedikt. "And this is what we try to bring home to the large banks in sub-Saharan Africa: It is dangerous to neglect the business potential generated by medium and low incomes."
Putting Roland Berger on the map in sub-Saharan Africa
Taking an innovative, business-focused approach to a topic that had been occupied by NGOs and small microfinance outfits has boosted Roland Berger's reputation in the region and equipped the team with an understanding of the realities and opportunities African banks face.
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