How banks work


Senegal Low-Income Workers Open Bank Accounts

In the West African nation of Senegal, fewerwhy did they take out this ten dollars. When
than 10 per cent of people have accounts atwe went to the bank, they told us it was for
traditional banks. Such accounts haveinsurance,"  she  says.
traditionally been seen as only for the very
rich. But a growing network of branchesSeck says the bank also debits just over two
extending into more remote areas means thatdollars every three months for maintenance
more people than before have access to banks.costs.
Naomi Schwarz visited on the outskirts of
Dakar with a new mother who has a savingsBut despite these costs, she says the bank
account.account has helped her save more money than
before. "In the house, it is no good, because
In a one-room apartment on the outskirts ofyou can spend the money. At the boutique it
Senegal's capital, Dakar, Margot Seck iswas better, but when you have problems, you
cooking lunch on her small balcony. She iscan go straight to the boutique and take the
using her short maternity leave from her jobmoney. But when it is at the bank, sometimes
as  a  cashier  to  set  up  the  apartment.you are slower to withdraw your savings," she
says.
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Despite Seck's story, most Senegalese do not
Since 1995 SEO/SEM tools, training, andhave  bank  accounts.
professional "full service" Search Engine
Marketing  help  at  very  affordable  rates.Oumar Diene, of the Senegalese
non-governmental organization CRESP, says
Since she is not working now, she has beenthis may be changing. "We have the impression
spending from her savings. But ever since thethat these days, there is an accent on
25-year-old came to Dakar from herfamily'spotential clients who, until now, have not
village and began working, she has beenbeen taken into account by the big banks," he
putting aside a small portion of her paychecksays.
for just such an occasion. "When I was paid
my salary, I would spend what I needed, and IHe says that banks are directing their
would bring the rest to the corner shopkeepermarketing campaigns at university students,
to  hold  on  to  for  me,"  she  says.many of whom have little or no income. He
also notes the increasing number of bank
Two years ago, with the help of her boss,branches  across  the  country.
Seck opened an account at one of Senegal's
commercial  banks.But obstacles are still keeping many
Senegalese  from  opening  accounts.
Seck's boss advanced to her and three
co-workers the 150-dollar minimum deposit theMohammed Wilson, a director at Senegal's CBAO
bank required, and she helped them acquirebank, says one obstacle is a culture that
thenecessary  papers.prefers cash transactions. He says Senegalese
are wary of entrusting their money to someone
Seck goes to a small bedside cabinet andelse, and they are unfamiliar with how banks
pulls  out  a  simple wooden box with a lock.work.
She unlocks the box and takes out the papers,But even for those who are interested in bank
explaining that before she moved in with heraccounts, the minimum deposit can seem
husband, she shared a room with many singleoverwhelming, especially for non-salaried
cousins, and the locked box was needed toworkers whose income varies from week to
keep  her  finances  private.week. Wilson says the minimum deposit is
required for the banks to cover their
She says she told only her brothers andoperating costs. He says if more people had
sisters about the bank account, and justbank accounts, the banks would be able to
recently, her husband. "Ah, when you say thatreduce the minimum deposit and also the fees.
you have an account, people will think that
you have a lot of money, even though it isSince so many businesses rely on cash
nothing."transactions, Wilson says his branches must
be prepared for large cash withdrawals. This
Seck says the bank takes money out of herwould be less of a burden if more people had
account for various fees. "The first month,accounts, and money could change hands
they took out 10 dollars. We were shocked,invisibly, through checks.



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