Telkom says it will enter the financial services sector by launching a life insurance business.
Telkom Financial Services, which will initially only sell funeral insurance, seeks to address the needs of over 11 million South Africans who do not have bank accounts.
To do this, the company said it will also use its network and extensive customer base to expand its mobile payment apps into a variety of ecommerce platforms.
This new financial services business will be underwritten by cell captive insurance and risk solutions provider Guardrisk, which is a part of Momentum.
“In recent years Telkom has made a strategic shift to digital distribution, which puts it in an ideal position to distribute insurance products using its considerable digital structure and intellectual property,” said managing executive for Telkom Financial Services Sibusiso Ngwenya.