Financial services provider Ithala SOC Limited is forging ahead with plans to make banking services more accessible to marginalized communities.

The first pillar of the revenue enhancement and collection solution (RECS) was launched by eThekwini Municipality Mayor, Zandile Gumede, at Durban's Curries Fountain Stadium recently. 

Phase one is the pilot phase of the project which involves the roll-out of ATM self-service devices (SSDs) to 20 merchants in Inanda, Ntuzuma and KwaMashu and will be followed by a broader roll-out to other municipalities across KwaZulu-Natal.

SSDs have the functionality for cash withdrawals and balance enquiries, thus making transactional services accessible, convenient and efficient.

Ithala SOC Limited is a 100 percent owned subsidiary of Ithala Development Finance Corporation and is mandated to serve ordinary South Africans and help them to manage their money and create wealth.

"This is an exciting time for us as the infrastructure to ensure readiness for the roll-out of the full RECS project is being put in place. Bringing banking services closer to the people of KZN and promoting an inclusive economy is well aligned to our development mandate," said Shane Moodley, Head of Segments at Ithala SOC Limited.

"The initiative to uplift SMMEs through innovative banking solutions is testament to our commitment to accelerate government priorities and fast-track the participation of the informal sector market in peri-urban and rural areas when collecting revenue."

RECS will also assist in revitalizing the township economy and give opportunities to small enterprises. Commissions will be paid to spaza shop owners for certain transactions concluded on the SSDs. Moodley said the initiative would increase the impact of job creation and economic transformation which was much needed in a dwindling economy.

RECS will enable the municipality's customers to conveniently pay for their bills online and purchase prepaid electricity through a custom-built mobile app as well as at ATMs situated within spaza shops.

The paperless solution will help the municipality to reduce their current expenditure bill over the three-year period during which the solution will be implemented. The savings from printing and postage costs will be redirected to other municipal social programmes and service delivery projects. 

Residents will access their bills and make payments within their areas with the assistance of trained staff provided by the municipality. Youth will get job opportunities through assistance provided during the transition phase of the RECS project. 

The solution will enable the city to deliver secure electronic documents via cell-phone/smart application/web portal and email, and provide consolidated account bills on different levels which will enable payment linked to the digital bill and continuous service delivery by the municipality.

"Over the past years, Ithala has been at the forefront of the transformation of the provincial economy through wealth redistribution and creation of entrepreneurs at the bottom of the pyramid," said Gumede.

"RECS will be able to create about 325 jobs for our youth and redistribute about R50 million to local businesses such as spaza shops and local supermarkets.

"Ithala has become an effective instrument focusing on driving the new developmental programmes of poverty alleviation through SMMEs and the co-operative sector.

A current distribution network of 39 branches in KZN provides convenient transacting facilities. Ithala offers a comprehensive portfolio of corporate and personal banking solutions. 

For more information visit www.myithala.co.za, call 031 366 2500 or follow #MoveToIthala. 

Ends 

Issued by:       Ithala SOC Limited Head Office

303 Dr Pixley KaSeme (West Street)          

15th Floor Delta Towers

Durban

Lichelle Govender | Consultant

Switchboard:  +27 31 201 0550

e-mail:  lichelleg@meropa.co.za

Website:  www.meropa.co.za