Survivors see banks as inflexible and intimidating

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'Mashonisas' or loan sharks are expensive, but more familiar. This market does still take credit and debt is a part of life. Spazas are an important provider of credit, it's key to their survival. The mass market make limited use of formal financial offerings for three things only, saving, credit and insurance.

According to the UCT Unilever Institute, survivors (defined as individuals with a household income of less than R6,000 per month) usually go to the ATM once a month and check that their money has come in, whether through a job or social grant, and then withdraw all of it in cash. They would rather take the risk of carrying cash around because they mistrust banks, they avoid charges, and find it easier to budget with tangible cash in hand. Cash is the currency of the informal trade and one can negotiate with cash.

Bank charges

"We don't trust banks any more because they charge us more than they should," a respondent in the UCT Unilever Institute survey said. Survivors have a huge suspicion towards financial institutions, and the evidence shows that they are intimidated around ATM's and there is a general disgust around bank charges.

Terms and conditions and fine print grate with an entrenched verbal culture. A respondent said, "At the banks they say we must sign here and here and that the pages of writing are not important - but what are they hiding?" Survivors are rightfully suspicious as they are often being lured into taking further credit, there is a huge growth of credit, but also a massive credit burn.

The lack of understanding of interest structures and the experience of getting into bad debt because the T&Cs are not understood has led many Survivors to opt for loan sharks. There is a greater trust for people on the street and in the community. English is the language of the marketer but not of the market, and financial service providers who have made their product offerings simple, easy, accessible, and not intimidating have thrived in this market.

Asset rich, cash poor

"There are various credit offerings, through retailers both informal and formal. Nothing is black and white, the mass market is relatively asset rich but cash poor. Not all income is reported, and as cash is not always used in transactions, complex barter systems can be at play," says Tania Barzu, portfolio manager of trade marketing and business strategy at Ads24.

There are still huge barriers to electronic payments in the cash based informal world. Many survivors have not had successful exposure to innovation stepping stones such as cheques, ATMs, credit cards, and online banking. It is a big leap to mobile banking with a virtual account and money.

The UCT Unilever report advises financial institutions to think sustainability and not to take advantage, to do business sustainably and to remember that they are creating a market for the future.