Banking apps boom

South African banks are reporting phenomenal growth in the utilization of banking apps regardless of the country’s finite banked population, stagnant numbers of smartphone penetration and comparatively lower levels of financial literacy.

Recent figures released by leading retail banks show digital banking is fast growing, understandably so with the fierce competition to innovate and meet the requirements of digitally savvy consumers.

FNB’s tactic to migrate customers from physical to digital channels showed much progress with physical financial transaction volumes declining from 68% just last year to 29% in 2018 while digital financial transaction volumes grew from 32% to 71% over the same period. It notes that increased digital functionality has enabled it to advance some transactions which could previously basically be performed in-branch across to digital channels.

The bank reported annual development of 65% in mobile banking app volumes, bringing the extent almost on par with that of online or desktop banking, which fell 4% during the year by way of June 2018. FNB says it processed around R105 billion in payments through digital channels within the 12-month period, typically R8.7 billion in digital payments each month.

Similarly, Standard Bank says its customers “continued to point out a preference for digital as an alternative to physical”. Its Personal and Business Banking unit reported a 7% increase in active mobile banking users, with transactions increasing by 58%.

According to Nedbank, its new app launched in November 2017, was downloaded on the million times and registered 400 000 active users inside of 10 months. It told investors with a third quarter roadshow that enrolments and transactions across all versions of the app increased by 61% and 26% respectively. ?

Capitec, the country’s fastest growing retail bank, registered a 62% increasing amount of the employment of its banking app to one.8 million clients throughout the several months ended August 2018. Additionally, self-service banking transactions

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