Statistics from local banks indicate a strong upward trend in Internet banking in the past year, with increases in the value and number of transactions processed by their Internet banking divisions.
Despite some technical difficulties towards the end of last year, First National Bank`s Internet banking portal, eBucks.com, recorded an increase of 77% in the number of transactions and an increase of 71% in the value of transactions from December 2002 to December 2003. Absa says its transaction volume increased by 39%, representing a value increase of 40%.
Angus Brown, CEO of eBucks.com, says the increase can be attributed to two factors. "Firstly is the noted increase in general Internet usage in SA, and secondly, people are realising the convenience and value that Internet banking adds, with the result that more customers are taking advantage of this banking channel."
Greg Harwood, Nedbank`s media liaison officer, agrees consumers are gaining confidence in online banking. "Economic factors such as the drop in interest rates are also likely to have played a role because clients have increased buying power and subsequently more bills to pay which in turn results in more payments and other online transactions."
Banks also report a substantial increase in the number of Internet bankers of between 21% and 73%. Brown says the increase in the number of Internet bankers is indicative of consumers` growing confidence in e-banking. "The additional security we offered by SMS authentication may have influenced the more security-conscious client to start banking online," says Harwood.
Banks are expecting further increases in 2004, and FNB says it plans to introduce a number of innovations to enhance the local Internet banking experience.
Share
