South Africa’s First National Bank (FNB) has launched a money transfer service in Mozambique, barely a year after introducing the service to Zimbabwe.
The service is available to qualifying FNB customers in South Africa to send money to residents in Mozambique instantly, through its Cellphone and Online Banking channels, the Johannesburg-based bank said today.
“We have seen with the FNB Zimbabwe Money Transfer service that there is a real need for a remittance service that is readily accessible,” Leonora van der Plas, head of Cross-border Remittances at FNB, said in a statement.
“People don’t always have the time or money to travel to the bank during working hours and often need to send money home at short notice.”
Launched a year ago, FNB said that it has seen a 26% month-on-month growth in send transaction volumes for its FNB Zimbabwe Money Transfer service. With good customer feedback and over 66% repeat usage, the service is showing solid growth.
Although the World Bank estimated that around $220 million was remitted to Mozambique from across the world in 2012, money transfer services to the country are not as developed as between other countries.
This has resulted to people relying on informal channels such as taxis and friends or family.
Informal charges can be up to 20% of the remitted value, FNB said.