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Sabric encourages alternative banking methods

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 25 Jul 2014
Local businesses, consumers and stokvels are encouraged to use other methods of banking in the wake of a surge in violent, cash-related crimes.
Local businesses, consumers and stokvels are encouraged to use other methods of banking in the wake of a surge in violent, cash-related crimes.

The SA Banking Risk Information Centre (Sabric) is encouraging consumers to take advantage of the technological advances SA's banking sector has seen, and to start accessing the pool of Internet and mobile channels available to them.

This comes as the country - Gauteng in particular - has seen a surge in the number of violent crimes related to cash-in-hand transacting. According to Sabric, six banking customers were killed in associated robbery incidents in the first six months of the year.

There has been a 33% increase nationally in associated robberies over the past 12 months, compared to the same period a year ago. Gauteng has borne most of the brunt, with 53% of the incidents reported in the country's economic hub. Gauteng is followed by KwaZulu-Natal and the Western Cape, with 14% and 11% of incidents reported respectively.

Kevin Twiname, GM for violent crimes office at Sabric, says while the organisation is not dictating methods of banking to consumers, it is concerned by the spike in violent incidents and wants to make people aware of the alternatives.

With a 10% year-on-year increase in cash circulation in SA, cash is still king, he says. "Cash is not going to go away and people will not stop dealing in cash, but we believe, to safeguard themselves, they should consider the alternatives that are there today. They have various platforms available."

Sabric CEO Kalyani Pillay says criminals are ruthless in their operation and will not hesitate in taking lives. "For this reason, we caution the public to be aware of this and practice other methods of banking rather than carry large sums of cash."

Pillay cautions all bank customers - from small businesses to stokvels and individuals - to use the "numerous options" available today, "such as cellphone or Internet banking or using the ATM to do your banking transactions".

In a cautionary statement, Sabric lists a number of tips for consumers to avoid being victims of crime, with electronic banking, cellphone banking and Internet transfers topping the list.

The warning comes in the wake of a flurry of activity in the mobile payments space - as well as an increased focus on Internet banking channels. SA's banks are increasingly encouraging customers to make the move to digital banking and minimise cash handling.

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