Cellphone banking has moved from a fad to a niche service, with the challenge now to achieve mainstream adoption, says Len Pienaar, CEO of Mobile & Transact Solutions at First National Bank (FNB).
Speaking at Terrapinn`s second annual African Banking Congress in Sandton yesterday, Pienaar said a year ago only FNB and Wizzit had launched mobile banking in SA.
"Since then, all four major banks have launched or relaunched their cellphone banking operations and it has become a significant transaction channel for banks," he said.
Transactions and values are now counted in the millions, with a total of about 500 000 South Africans registered for cellphone banking.
Pienaar says the institutions have moved beyond the debate about what technology and business model is the best, and, with lessons learned, the focus this year is on growing volumes.
While cellphone banking was originally held back in SA because of indecision about what technology is best, Pienaar said the banks have learned that there is no right or wrong. The main factor in choosing technology is ease of use for the customer.
The same could be said of the business model, with the four banks seeing cellphone banking as an extension of existing services, while MTN Banking and Wizzit offer a standalone service.
Registration methods
"You need to look at your own customers to determine your model," he said.
Pienaar noted that the banks have also learned that they have to offer a large number of registration methods, such as ATMs, branches, handsets, call centres and the Internet, to ensure that customers can access the service.
He added that he was encouraged to see new services exploiting the channel`s functionality, such as opening accounts and prepaid services needed at home. These included mobile, electricity and fixed-line telephony.
"Prepaid top-ups, especially using cellphone banking, are becoming major banking transactions. Every customer is a prepaid customer and can buy for others as well."
He said cellphone banking had turned out not to be simply a cost saver for banks, but also a new transaction generator.
"This year will be about growing volumes," he said. "We`ve moved past the debate around what technology or business model is best, and we are getting used to seeing people with money on their phones."
He added that the aim now was that seeing people using cellphones to do bank transactions would become as natural as seeing them leaving a branch.
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