First National Bank (FNB) has sold more than 250 000 devices, worth over R1 billion, since the inception of its smart device deal, three years ago.
According to the bank, 90% of these devices are using FNB's digital banking channels. "Digital banking is no longer something that we can refer to as the 'future of banking'. With over one million active devices transacting on FNB's banking app alone, it is clear this is the banking of now.
"However, we understand that in order for our customers to bank digitally, they need access to the devices that enable this, which is what our smart device offer provides," says Kartik Mistry, head of FNB smart devices.
Device trends over the last three years show tablets and smartphones are the most popular devices among FNB customers, with Apple iPads the top seller, followed by Samsung Galaxy smartphones. Overall, smartphones make up 42% of FNB's overall sales, with tablets making up 34%, says FNB.
"With 76% of all device sales being smartphones and tablets, it proves these are the modern day tools that have become essential in today's world of instant access and on-the-go living," says Mistry.
Health growth rate
FNB says it has seen an 18% year-on-year growth in device sales, with 22% of customers choosing to own more than one device through the FNB smart device deal. Ordering online is the way most people choose to purchase their device, with 59% of people ordering online and 11% of customers choosing to do so at one of the bank's dotFNB stores.
"We are encouraged at the growth rate we've seen to date as it not only proves that we made the right call to launch the offer in the first place but also that people have taken so keenly to banking digitally," says Mistry.
"The last three years have also seen FNB's smart device range expand from phones and tablets to include laptops, gaming consoles and televisions. The popularity of the devices with customers has enabled us to expand our range and in turn pass the discounts that we get from our suppliers back to our customers," he adds.
"With continuous interest and growth of our smart device offer and digital banking, we will be able to offer more value, convenience and cost savings to our customers, reducing the dependency on cash, building on our digital ecosystem and digital lifestyle."
Providing competition
BMI-TechKnowledge analyst Brian Neilson say FNB has done "something quite amazing since the start of its smart device deal. They have captured the imagination of their customers, at the same time running a very successful marketing campaign around their digital banking channels."
Neilson says other banks are in catch-up mode, and are also rolling out innovative digital banking solutions. "Perhaps the gap is narrowing, as the others are innovating, but it is debatable whether they will also be exploring similar smart device deals."
As far as tablets outselling smartphones among FNB customers, Neilson says this is not surprising. "Most people already have smartphones on contract from operators such as MTN, Cell C or Vodacom, so the iPad would be a second device that people are keen to get their hands on."
Independent telecoms analyst Spiwe Chireka says the bank has changed the landscape of the local digital economy with its smart device deal, by providing competition to traditional telecoms players. "We are seeing a non-traditional player coming to the fore and emerging as a viable player in the telecoms space."
However, Chireka says telcos need not see this as a negative, as it gives them additional channels via which to distribute their products and services.