The potential social capital benefits of entry-level banking in South Africa.

Coetzee, Pieter Jakobus.
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ABSTRACT More than half of the world’s working-age population does not have access to affordable financial services. That said, microfinance has become the darling of the developing world. In South Africa, banking for the poor has been implemented through initiatives such as the Mzansi account. Globally, institutions such as Grameen Bank have found alternate models for providing financial services to the poor. This research report determines the potential contribution to social capital that may result from the implementation of entry-level banking in South Africa. Data for this quantitative research study was collected through Likert-scale questionnaires completed at three sites around Johannesburg, South Africa, by individuals that earn less than R2 500 per month. It was found that the necessary elements of social capital and entrepreneurial propensity required in establishing entry-level banking operations in South Africa exist within the urban poor communities. Entry-level banking should be possible in South Africa.
MBA 2012
Banks and banking, Microfinance, Economic development .