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Big four bank First National Bank (FNB) says two million of its customers are doing banking through their cellphones.
Just over 11% of the South African population banks through their mobile phones, a figure that has surpassed the amount of people who have Internet access. FNB says it has a third of this market.
“The option of transacting from the safety and comfort of your own home or workplace, instead of going into a bank, and the significantly lower fees involved, are drawing many people into the realm of cellphone banking,” says FNB Cellphone Banking CEO Ravesh Ramlakan.
Most of FNB's cellphone banking customers are black, at 69%, and 88% of them speak English. Almost a third are young, between 19 and 32 years of age. In addition, just over a third live in Gauteng and 40% earn between R8 400 and R60 000 a year.
About 70% of cellphone banking transactions are mainly for prepaid services, such as prepaid airtime and electricity. “Although convenience is the most frequently mentioned selling proposition for the mobile alternative, what we really are selling is personal empowerment,” adds Ramlakan.
Arthur Goldstuck, MD of World Wide Worx, says cellphone banking will continue to grow faster than online banking. “There is a lot of growth left and cellphone banking will continue to outpace Internet banking. Internet banking won't catch up again.”
