Advanced Project and South African Unbanked 3
The banking sector itself is somewhat structurally unsuited to push into the poorer and more remote corners of the country. It is highly concentrated and conservative with regulations that focus on soundness and stability, all of which can make it difficult to commit resources to collecting smaller deposits and making smaller loans. The World Bank has suggested that a tiered system of licensing be introduced, whereby specialised institutions are specifically designed for the lower strata of the market. Similar programmes are currently in place elsewhere in Africa, such as Ghana, where licensed rural banks provide retail loans, often, though not always, to lesser-banked markets.
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