South Africans 'shunning banking'

Safer under the mattress?

Two out of every five South Africans do not use banking services, a survey by the FinMark Trust has found.

Lack of funds and high charges were the main reasons given for not using banks.

Others complained that paperwork was too complicated and they could not communicate with bank tellers. The country has 11 official languages.

Meeting their requirements may allow lenders to tap a fast-expanding market in a country where the gap between rich and poor is widening.

Potential market

The average annual income in South Africa is $2,820, according to the World Bank.

The majority of people without a bank account were non-white, tended to be less well educated and lived in informal or township areas, the survey found.

These people wanted banks to focus on providing services and investment products for the poor, to simplify opening accounts and to make it easier to access money.

"These people are not the poorest of the poor," said FinMark, which questioned 1,000 South Africans over the age of 18.

"They may have problems with ready cash, but they do have reasonable living standards."

The national Post Bank was rated as the safest place to leave money, while family members were seen as the least trustworthy.