Cellphones overtake PCs in banking

Almost twice as many people bank on their cellphones than on PCs, new research has revealed.

World Wide Worx research shows that more than a quarter of bank customers use cellphones for services ranging from informational transaction types such as balance enquiries, to financial transaction types, which include account payments.

The research, backed by First National Bank (FNB) and Research In Motion (RIM), forms part of the consumer phase of the Mobility 2009 research project, which is being undertaken by World Wide Worx.

Len Pienaar, CEO of FNB mCommerce, says: “It is encouraging to see that, not only in FNB, but across the country, cellphone banking is now part of people's lives.”

The study is being conducted in four phases, with the first three looking at the use of mobile technologies by small and medium enterprises (SMEs), consumers and corporations, and the final phase exploring the mobile Internet.

The second phase of the study showed that, while 16% of banking customers in SA use the Internet for banking, 28% use their cellphones. A total of 34% use one or both of these channels. Outside of the branch and ATMs, only 6% rely exclusively on the Internet, while 18% rely only on cellphone banking.

“The fact that services like cellphone banking are taking off so strongly shows that consumers no longer see their cellphones only as voice and text messaging devices, but use them to stay in touch with everything that matters in their business and personal lives,” says Deon Liebenberg, regional director for sub-Saharan Africa at RIM.

The study revealed the main services driving cellphone banking are balance enquiries and notifications of transactions, with three-quarters of cellphone bankers using these features.

Just under half view statements on their mobiles, 35% transfer between accounts, and 28% pay accounts on their cellphones. In contrast, only 8% add beneficiaries via the cellphone, indicating both security concerns and set-up issues.

“Our research shows that South Africans are becoming comfortable with cellphone banking, but precisely half of general banking customers are still nervous of it, citing trust as their major concern,” says Arthur Goldstuck, MD of World Wide Worx. “However, this concern must be seen in the light of 34% also saying the issue is not knowing how to use the service.”

At the same time, two-thirds of cellphone banking users were satisfied with the security of the channel. This suggests that, once customers start using cellphone banking, they grow increasingly confident in both security and usability aspects, the survey says.

Liebenberg adds: “The success of cellphone banking shows there is a strong demand in SA for powerful and easy to use mobile data services and applications that help people to save time and stay in control of their lives at all times. With mobile penetration at more than 114% in SA, we can expect to see the adoption of mobile banking and other personal services and applications ramp up quickly.”

The study also shows purchasing through cellphones is beginning to take off, with 24% of cellphone banking customers purchasing prepaid electricity and 21% making general purchases of items like movie tickets and flowers. Purchase of airtime still leads the way here, accounting for 61% of cellphone banking users.

Mobility 2009 included research among 1 000 consumers in metropolitan areas, 1 000 SMEs and 240 large enterprises in SA.