First National Bank (FNB) has expanded its Internet banking service to bring virtual banking another step closer for ordinary retail bankers who apply for products online.
"Until now, the virtual banking model has been limited to high-income earners at private banks and clients of exclusively Internet-based banks, but by introducing a courier component for all holders of FNB cheque or credit card accounts, near-virtual banking is now available to many more people," says FNB MyBranch`s Sean Mulcahy.
FNB has extended its facilities for applying for cheque and credit card accounts online, by making it possible to complete the entire application process without having to go to branch.
Mulcahy says by offering these first two "virtual fulfilment" products, FNB has taken a "significant" step closer to providing full-service banking online.
"It is now no longer necessary to go to a bricks-and-mortar branch to present original documentation or collect the means of access such as a cheque or credit card, because this part of the process can be fulfilled by a courier at time and place of the customer`s choosing," says Mulcahy.
Although this service is available only to customers who apply online and qualify for a cheque or credit card account, once the initial process has been completed, that customer is free to transact using any banking channel offered by FNB.
"For the first time, anyone applying for an account online has the flexibility and choice in future of banking via the Internet, by telephone, ATMs and even an ordinary FNB branch, which distinguishes our offering from an Internet-only bank like 20Twenty," says Mulcahy.
FNB plans to extend the near-virtual banking experience to other product offerings as the market develops, but Mulcahy says FNB`s Mzanzi low-cost banking offerings are likely to incur additional charges if virtual fulfilment services are required. Otherwise virtual fulfilment will be free and standard charges will apply for all transactions, depending on the channel of choice.
"The move towards more virtual banking is in line with FNB`s belief that the role of the branch is changing. For straightforward banking activities, e-channels are much more cost-effective. It`s about using technology as an enabler to work effectively and efficiently," says Mulcahy.
"The need for branches is a critical as ever, but the role of the branch is evolving away from standard products and services towards advice to customers concerning more complex or personal products, such as estate planning," he explains.
Application forms for FNB`s first two virtual banking products will be available on the bank`s Web site from 14 March by selecting the "door-to-door" option found under the "personal" or "services" option on the main menu bar.
None of the other big four banks contacted have plans to give retail customers the choice of branch banking, virtual banking or both. However, the banks say they are all working on new technology-based channels to improve service delivery and these will be announced in the coming weeks.
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