First National Bank (FNB) has reported record numbers for its cellphone banking services over the festive season.
FNB reportedly processed in excess of 15 million transactions in December 2010, with a total transaction value of R1.7 billion, compared to R1 billion in 2009.
According to FNB, two-thirds of all transactions over the festive season were for prepaid products. “This is attributed to the convenience of being able to 'top-up' 24/7,” said FNB.
“Balances are also very popular as customers regularly check the status of their accounts and mobile payments are starting to grow in popularity.”
“The numbers are evident of more and more customers finding the mobile banking channel convenient, simple and cost-effective, says Ravesh Ramlakan, CEO of FNB Cellphone Banking.
Upward trend
In June last year, FNB reached the two million mobile banking customers milestone. The business recorded over 2.5 million registered customers in October and added another 100 000 customers over November and December.
Responding to what could have driven the increase in customers, FNB says: “People have overcome their security concerns with this channel and are now confident to transact using their cellphones.
“We have also simplified the registration process so customers can register using online banking, ATMs or branches.”
Just over 11% of the South African population banks through their mobile phones, a figure that has surpassed the amount of people who have Internet access. FNB says it has a third of this market.
Of its 2.6 million customers, 65% earn less than R100 000 per annum and are between the ages of 18 and 40 years.
“Although our predominant customer base resides within the mainstream market, a strong increase in usage among the affluent target market is also evident. During the festive period for example, the FNB.Mobi site, which is generally accessed by the tech-savvy via their cellphone Internet browsers, attracted more than 250 000 visitors,” says Ramlakan.
Mobile appeal
Arthur Goldstuck, MD of World Wide Worx, says cellphone banking will continue to grow faster than online banking.
“There is a lot of growth left and cellphone banking will continue to outpace Internet banking. Internet banking won't catch up again.”
In addition, he says, cellphone banking will appeal to people who do not have Internet access, and have to travel great distances to get to a physical bank
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