South Africa’s telecom operator Telkom has branched into the aggressive house of economic providers by launching a life insurance coverage enterprise that it stated will initially promote funeral insurance coverage.
Telkom and different cell operators in South Africa want to faucet greater than 11 million South Africans who wouldn’t have financial institution accounts to supply lending and different monetary providers, a transfer that’s set to threaten conventional and digital banks.
They’re additionally searching for to increase their cell fee apps into on-line market locations to leverage their community and buyer base.
“In recent times Telkom has made a strategic shift to digital distribution, which places it in a great place to distribute insurance coverage merchandise utilizing its appreciable digital construction and mental property,” Sibusiso Ngwenya, managing government for Telkom Monetary Providers stated in a joint assertion on Sunday with insurer Guardrisk which can underwrite the service.
Partly state-owned Telkom has been diversifying its revenue streams past the fixed-line enterprise, which now contributes simply over 20% to group income, up from 56% in 2013.