SA will soon have its first virtual bank, when a new initiative launches this weekend. 20twenty is an online banking service owned primarily by Saambou Bank, one of the country`s last independent banks.
Despite a media embargo, news of the 20twenty offering emerged this week in various Sunday and daily newspapers. The site has been in a pilot-testing phase for the past two months, and offers regular transactional capabilities, such as online payments, and budget management and other tools.
The bank`s first product offering is the 20one account, which features characteristics of a saving and current account, a Mastercard and an optional line of credit.
20twenty offers:
- . Near-instantaneous credit decisions;
- . Flexible transaction fees (R50 per month flat fee or a R5 per transaction -- an online fee calculator provides a reference to other banks` fees);
- . A three-month 100% satisfaction or-your-fees-back guarantee;
- . A 100% online security guarantee;
- . A 100% online anti-fraud guarantee; and
- . 6% interest on a balance between R1 and R9 999, or 9% on balances over R10 000.
There are several aspects of the offering which differentiate the 20twenty product from other online banking services. The company punts its strong focus on customer service, and its flexible fee options as among the most important.
Christo Davel, CEO of 20twenty, comments in a statement: "20twenty delivers on the promises bankers have thus far not dared to make. This is possible through integrated modern technology, recognised as robust and secure enough to back-up these claims in the harshest of Web traffic. Even those so-called online banks that have latched onto the legacy systems of partners cannot lay claim to the value that we offer."
The bank is confident that its target market - people who currently bank online through other financial institutions - will snap up the offering. In part, this assurance stems from another service offered by 20twenty - that of account migration on behalf of the client.
"All the customer has to do is to provide us with authorisation and account payment details, and we`ll transfer their account to us, complete with debit orders and the rest of it," says Davel.
In addition, the bank offers a three-month satisfaction guarantee, and is willing to reimburse all service fees incurred, as well as manage the transfer of accounts, should clients be dissatisfied with the service.
The aggressive approach is aimed at securing 20twenty a 15% slice of the South African online banking market, currently 600 000-strong, by the end of year one.
Davel says this figure compares well with other banks` current online market share, and adds that with that share 20twenty can be profitable in the third year of operation. It plans to increase profitability by growing its market aggressively and increasing customer profitability.
"Future roll-out will include everything required for 20twenty to be a financial partner for the global citizen," says Davel, "including a reward programme, electronic bill presentment and payment and financial aggregation. But the customer is still at the very core of his or her financial portfolio. We essentially offer one line of credit, and future credit is merely an expansion of that."
The bank will also explore other technology channels as and when it becomes appropriate, says Davel. "Our technology is open to additional future channels, allowing us to adopt the gamut of future customer touchpoints, including wireless computing, mobile commerce, interactive TV and others, as they prove themselves and are accepted and used by customers."
20twenty has partnered with Microsoft, Compaq and Cisco for its banking and communications platform, secured on multiple levels. FinCentric (formerly ProLogic) provided the banking engine.
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