Changing Lives
be part of this growth. Some banks such as
NSIA, Ecobank, Banque Atlantique, Bank of
Africa and BNP Paribas have become e-money
issuers and agents for mobile money services
diversifying their revenue. 29 out of 33 digital
financial services in WAEMU are based on
partnership between banks and MNOs or
non-banks. Banks are also enabling money transfer
between bank account and mobile money wallet
offering additional services to existing users.
vritti
September 2017
23
Some bigger banks like Societe Generale are
taking a different approach and competing
with MNO led mobile money services. Societe
Generale is promoting itself as a new age
bank by launching its own mobile financial service
and positioning it as an alternative to traditional
banking. To extend the reach of their service,
the bank is partnering with third-party agents.
YUP
Societe Generale, a French multinational bank has launched a mobile money service called YUP in Côte
d'Ivoire and Senegal. Societe Generale has adopted agency banking model for YUP. Societe Generale has
partnered with third-party agents (service stations, traders, small shops) to offer last-mile services such as
cash-in and cash-out. YUP is accessible via an expanded network of distributors equipped with adapted
terminals and via the mobile banking app of Societe Generale's banks.
Any customer with bank or without bank account can use YUP using their mobile phone irrespective of their
telecom operator. YUP's customers can withdraw, deposit and transfer money. They can also pay bills, buy
phone credit, and make payments to merchants. The YUP solution also digitizes corporates' payment flows.
Societe Generale plans to launch financial services like payday advances, loans, savings and international
transfers to YUP’s portfolio.
The loan service will be offered via the micro-credit bank Manko, launched by Societe Generale in Senegal.
These agents travel by scooter on the ground with a tab to estimate activity, stock, take pictures, scan IDs,
etc. The granting of the credit is then completely dematerialized and unlocked via the Yup account.
YUP already has more than 30,000 open wallets and nearly 600 agents in Côte d'Ivoire and Senegal. Societe
Generale plans to launch the service in Ghana and Cameroon by end of 2017 and in Burkina Faso, Guinea and
Togo in 2018. The bank aims to open one million accounts by 2020 and expand the distribution network to
8000 agents over the same period.
Source: Societe Generale and La Tribune
Going digital is not easy for Banks. They face
multiple challenges which need to be resolved
to accelerate the growth of digital payments
in WAEMU. For example, most banks offer
web and mobile app as the only channels for
accessing their digital financial service, limiting
the uptake of the service. In WAEMU region
70% mobile connections are feature-phones.
Hence, for majority of the feature-phone
users, banks should offer Unstructured Supple-
mentary Service Data (USSD) as an access
channel in addition to web and mobile apps.
The USSD channel is controlled by MNOs. In
WAEMU, it is not mandatory for MNOs to offer
access of USSD channel to banks and non
MNOs. MNOs refuse or restrict access to USSD,
posing a challenge for bank in extending their
mobile financial service to basic phone users.
Constructive regulation in this area should be
formulated which will benefit both banks and
MNOs.
Unlike banks in Kenya, India and Brazil, most
WAEMU banks have not focused much on
creating agent network restricting their reach.