Category Archives: Banking

Zimbabwe and Kenya lead the way in Africa's dash from cash

Efficiency and safety of mobile money has millions forgoing notes and coins

“Drunks love paying by M-Pesa,” the owner of a bar in a low-income area of Kenya’s capital, Nairobi, explained drily. “It’s easy to get conned when you have cash.”

The well-known mobile money platform may not choose to commandeer this observation as a marketing slogan, but it does capture some of the reasons why M-Pesa is starting to shift Kenyans away from using cash.

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Source: gad

Amazon and Warren Buffett to create 'reasonable cost' healthcare company

  • Business giants partner with JP Morgan to help employees find care
  • ‘The ballooning costs act as a hungry tapeworm on the US economy’

Amazon is diving into healthcare, teaming up with Warren Buffett’s Berkshire Hathaway and the New York bank JP Morgan to create a company that helps their US employees find quality care “at a reasonable cost” and tackle the “hungry tapeworm on the American economy”.

The business giants offered few details on Tuesday and said the project is in the early planning stage. But the move from Amazon, which has long eyed the US’s enormous health market, sent shares in health insurance companies and pharmacy chains into a tailspin.

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Source: gadt

Jackpotting: hackers are making ATMs give away cash

Two of world’s largest cash machine makers and US Secret Service warn of attacks that empty ATMs at rate of 40 notes per 20 seconds

Cybercriminals are hacking cash machines to force them to give out money in what is known as “jackpotting”, according to two of the world’s largest ATM makers and the US Secret Service.

Diebold Nixdorf and NCR sent out an alert to their customers over the weekend, but did not identify victims or specify how much money had been stolen. The US Secret Service started warning financial institutions that jackpotting was now a risk in the US last week, having started in Mexico last year, according to a confidental alert seen by Krebs on Security.

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Source: gadt

Are we heading for another developing world debt crisis? | Larry Elliott

Western bank loans for projects in Africa were to be paid off via rising commodity prices. At least that was the theory …

Global interest rates are rising. Poor countries are finding it tough to pay back money borrowed from banks in anticipation of a commodity windfall that never materialised. Stir in some dirty dealing that has seen funds stolen and what do you have? That’s right: the makings of another debt crisis.

Poor country debt was supposed to have been sorted back in 2005, the year the Guardian changed from a broadsheet to its Berliner format. Now, 13 years later, we are changing format again and debt is back albeit in a different form. Last time, the focus was on public debt, money that poor-country governments owed to the International Monetary Fund, the World Bank and individual rich nations – and which was mostly forgiven as a result of the Gleneagles G8 agreement in 2005. These days, the issue is private-sector debt and while as yet only a handful of countries – mostly in sub-Saharan Africa – are in serious trouble, the warning signs are there. The IMF and the World Bank both know it.

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Source: gad