Over the period of a year, First National Bank's (FNB's) banking app has “superseded its expectations” in terms of growth, with over 30 000 users now signing up each month.
Close to the day a year ago, FNB became the first bank to bring a mobile banking app to the South African market.
FNB was followed this year by other big four banks Nedbank and Standard Bank, which both announced app offerings last month. SA's largest retail bank by customer numbers, Absa, has yet to release details of a smartphone app, which it says is in the pipeline.
Almanac uptake
Evaluating the path as FNB marks the one year anniversary of its app, FNB Connect head of products and markets, Farren Roper, says the growth rate of FNB's banking app in terms of acquisition has been unflagging. “From an acquisition standpoint, each month has been a bigger month than the one prior. We have grown from gaining close to 10 000 clients a month, to over 30 000 - which we hope to sustain.”
There are currently about 230 000 banking clients signed up for the app. From a purely banking perspective, says Roper, the most common activities are checking balances, transfers, payments, prepaid airtime, sending money and - more recently - GeoPayments.
From a value-added services perspective, he says the bank's Connect phone tops the popularity poll. “It provides clients with an FNB directory, as well as free calls to FNB and other clients. TopUps of Connect voice and data are also growing in popularity [as] clients realise they can make some of the cheapest local and international calls, from 25c per minute.”
Roper says, currently ahead of projections in terms of user numbers, sign up rates can only improve as smartphone penetration grows.
In May, when FNB unveiled GeoPayments - a location-based, cashless mobile payment option - the bank gained over 30 000 new users. Roper says this was up 10 000 from the previous month - more than 60% month-on-month growth. Referring to the recent World Wide Worx mobility study, which revealed GeoPayments has a 2% stake in mobile transactions, Roper says: “Geo pay could be the 'dark horse' in the mobile money and cashless payments race in the long term.”
Looking ahead
Roper says the app - and customers' response to it - has taught the team that sophistication and convenience is critical. “One of the reasons for the success of the app has been the ease of use,” he says.
“With our native apps, the adoption curve for our smartphone and tablet users has been an easy one for our customers. We have also seen user demographic behaviour start to shift, with the largest proportion of users (57.5%) still being 25-36. In our 36 and older base we have seen this amount grow to 30.5%, dispelling the myth that apps and smartphones are for the youth only.”
With a year under its belt and a number of observations having been made, Roper says FNB has “an extensive roadmap” in terms of future plans. “A lot of which includes traditional banking and some of which will be first to market.”
While he says he cannot elaborate now, Roper assures that customers can expect new functionality on a regular basis. “We have launched an array of different features since we launched in July 2011, including SMS, stop orders, e-mail statements, Contact your Premier Banker, Switch to FNB directly from the app, Send Money and Geo Payments.”
The competitive landscape has changed, he admits, “with other banks now having realised that apps in banking are a necessity”. Roper says it is important for FNB to “keep innovating and not be complacent”.
Nedbank's app, currently in beta and being trialled by employees, goes live to the public early in August, while Standard Bank brought a mobile phone app to market at the end of June.
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