Standard Bank Mobile, based in South Africa, has started selling smartphones to its customers with a financing option. The South African bank had previously launched an MVNO (Mobile Virtual Network Operator) in 2018.
The offering of mobile financial services is considered to be a major factor that prompted the bank to enter into mobile space.
Standard Bank Mobile is offering a range of smartphones which include iPhone, Samsung and Huawei. The bank is also providing enough funds to its customers for buying the phones.
Through the new scheme, the customers can buy smartphones through an extended payment facility. The facility is provided for Standard Bank credit card account holders. The payment for the phone can be done in a twenty four month period at an interest rate of 11 percent per year.
Standard Bank Mobile is also planning on introducing more flexible time periods for payments such as twelve months or thirty six months.
According to a statement given by the bank, “Standard Bank believes that the only way to enter a crowded telecommunications market is by offering additional value to consumers.”
There are around 91.7 million mobile subscriptions in South Africa. The two biggest telecom operators MTN and Vodafone claim two third of the market while Cell C and Telekom Mobile account for 2 percent of the subscription base. Standard Bank Mobile is using both MTN and Cell C’s network for the project.
Standard Bank’s MVNO venture made it the first financial institution in South Africa to explore that field.
Stephen Bailey, CEO of Standard Bank Mobile said that the integration of mobile and financial services to suit everyday requirements of the customers has always been the primary objective of the firm.