First National Bank (FNB) has created a cellphone banking offering for the business market.
FNB introduced the cellphone banking channel to consumers in March 2005 using SMS technology.
According to research completed by the bank, by the end of that year, consumer uptake had grown fourfold.
In November last year, Len Pienaar, CEO of FNB mobile and transact solutions, said the bank processed 100 million cellphone banking transactions per month.
World Wide Worx's annual study of mobile technology, conducted in November, showed the growth in the mobile channel, for banks across the board, had more than doubled in 2007.
The big four banks all actively pushed the technology in the consumer market last year, and each showed good growth figures in the channel.
SMS for two
The Cellphone Banking for Businesses product allows companies to have a dual authorisation agreement in place. This means a minimum of two registered cellphone banking users will be required to successfully process a financial transaction.
"As part of the security features, once a customer has registered for this service, only registered cellphone numbers can perform transactions. This service also includes SMS notification to inform you of pending transactions waiting for your authorisation," says Pienaar.
Registered cellphone banking users can use the service to transfer, make payments, check balance statements and purchase prepaid electricity and airtime. "The business owner can now enjoy the benefits of electronic banking through the use of their cellphone without having to incur any additional expenses, such as purchasing a personal computer," says Pienaar.
Customers can make these transactions using their handsets in a similar manner to those used by consumer services. Once a dual authorisation user initiates a financial transaction, all possible authorisers will receive an SMS notifying them of the pending transaction.
All financial transactions will trigger an SMS to all cell numbers registered for InContactPro (a free messaging service that notifies customers of any activity on their business account). FNB has also guaranteed the service, allowing business customers to claim on the full amount if fraud occurs.
Look at the market
All of the big four banks have a cellphone channel offering; however, only FNB and Absa seem to have taken the product to the business market.
Absa head of digital channels Christo Vrey says it has offered a comprehensive business cellphone service for some time. The bank introduced its version of a dual authorisation system in March last year.
According to Vrey, Absa's business cellphone banking service has around 46 000 customers, primarily from the small to medium business sector.
Standard Bank could not confirm whether it offered a similar service. When questioned, the bank responded: "We are constantly reviewing our product offerings according to the needs of our customers." However, there seems to be no similar offering listed in the products covered on its Web site.
Nedbank's site also did not show a business cellphone offering, nor could the bank be reached for comment.
Want, not need
KPMG IT advisory Gerald Kasimu says there is no reason why the channel will not be successful in the business arena. "However, it must be presented in a way that will be convenient and enhance business efficiency."
He says the popularity of the cellphone channel really took off around two years ago, and all the banks have been actively pushing the service to clients. "In the consumer market, the cellphone gives access to those who would not otherwise have had banking services before."
The cellphone has been the core of the technology channels explosion the banks have implemented, he adds. "That is why it is no surprise that banks are now starting to target the business segment with the channel."
The popularity of the payments option is the primary difference between the consumer offering and the business offering, says FNB. "Nearly a quarter of all transactions on the business platform to date have been payments," says Pienaar.
Related stories:
SA cellphone banking matures
Mobile commerce hits its stride
Share