The future of digital banking
You might be wondering what the move towards digital means for your financial future. Richard Ketley, director of financial services and infrastructure at Genesis Analytics, breaks it down – and we offer a roundup of five SA Banks.
Ketley notes that there is much focus on new digital and lowcost banks these days, with some banks even closing branches.
‘So in choosing a bank a customer must be clear on how comfortable they are transacting digitally, when it comes to the full range of products they need,’ he says. If you prefer walking into a bank to chat to a consultant about your financial needs/goals, then it’s a good idea to consider a bank that has a branch near you. Another factor to consider is that most South African banks have “segmented offerings” that target different population, age and income groups with a range of products and related benefits. Ketley recommends doing research to find out what each bank offers for your segment and whether it appeals to you. Factor in the kind of relationship you want to have with your bank when making your decision, ‘most banks present us with a tradeoff between service and fees; do you want to be able to call your banker (who you know by name and knows you) and pay for the piece of mind?’
The number of cards you want is also a factor, ‘most banks offer a confusing array of different cards, each of which has costs associated with them. So ask yourself if you value the benefit of being able to use different cards for different purposes or value a slimmer wallet with one card in it?’ When it comes to fees and rates, it’s not always clear what you’re paying for. Ketley explains that most banks offer a combination of flat fee and fee per activity, ‘flat fee may be easier to understand but look carefully at how you actually transact before you decide, based on past activity.’ If saving costs is a priority for you then consider using your card to swipe instead of withdrawing money. ‘This will allow you to enjoy the benefits of the loyalty scheme the bank provides, but make sure the benefits of the scheme are relevant to you.’
Mobile Banking
For millennials and Gen Z, mobile banking is the answer to a busy lifestyle, as it allows you to keep track of your finances through the various banking apps on your phone. You can do anything from transferring funds between accounts, payments, buying airtime, managing debit orders and much more. FNB offers the notifications feature, which reminds you of any scheduled debit orders so you don’t find yourself falling back on payments. Mobile banking also supports the move towards a paperless society to protect the environment.
Standard Bank
Banking App features: Make local and international payments and transfers Change your payment limits Buy data, airtime and SMS bundles
Buy pre-paid electricity Send cash vouchers to anyone with a cellphone Block lost or stolen cards, and order new ones
Get pre-approval on car financing
Manage your car and home loans
Submit and track building insurance claims
Get officiated statements, bank letters and tax certificates
Open savings accounts
Link your accounts to your share trading profile
FNB
Banking App features: Accounts and balances Payments and transfers
Buy airtime, electricity, lotto Access to coupons, vouchers and specials ewallet and cardless cash withdrawals
Global payments and access to Forex
GEO payments
Digital on-boarding (selfie banking) ncontact secure messaging Share trading, buying Krugerrands
Capitec
Banking App features:
Buy airtime, data, SMS bundles, electricity
Pay a Capitec Bank client using their verified cellphone number
Pay Dstv accounts
Add, sort, update and delete beneficiaries
Add recurring (stop orders) and future-dated payments View transaction or beneficiary payment history Do credit facility transfers Stop and/or dispute debit orders
Email electronically stamped statements
View credit plan balances and details
Do credit facility transfers View your credit rating and find ways to improve it Step-by-step guide to create your budget
Track your spending and take control of your money
Apply for funeral cover for up to 22 people
Block lost or stolen cards immediately
Loan management function
Rewards
The move towards a pure electronic banking system means a bulk of our currency is now digital so banks use rewards as a way to encourage consumers to use their cards to swipe instead of carrying money around. Not only is it safer for you but you also save money on transaction fees and you can use the points accumulated to buy the products you need.
Standard Bank – You earn Ucount Rewards for using your debit or credit card for daily purchases, whether in store or online. Your Ucount rewards can be redeemed for food, airtime, flights, accommodation, car hire, etc. The fee for this service if R24 or R288 per year, and you can improve your rewards tier to get more rewards points. Based on your monthly banking activity and the number of Standard Bank products and services you use every month, you automatically get tiering points which put you into one of five rewards tiers. The more products and services you use every month, the higher your rewards tier will be – and the more rewards points you will collect from your qualifying purchases.
FNB – Your reward rate determines how many ebucks you earn, this is the percentage of your qualifying purchases that you earn back in ebucks (eb10 = R1 for example).your reward level is determined by how many points you have collected in a calendar month. You collect points based on how you use your bank account(s). So the more points you have collected, the higher your reward level and the more ebucks you earn. To start earning ebucks, you must first meet the qualifying requirements specific to your FNB account.
Capitec – The Global One Facility also gives you access to travel discounts, online courses, car rental services and Uber rides.
Digital disruptors
Tyme Bank is the first digital retail bank in South Africa; it does not have any physical bank branches and relies on an Android banking app, an banking website and a partnership with retail chains Picknpay and Boxer stores to host a national network of selfservice kiosks that facilitate the process of opening an account. If you’re digital savvy and priceconscious, you’ll appreciate this offering which allows you to do all your banking online.
It takes less than five minutes to open a bank account either online or at the two retail chains. There’s no paperwork required which makes the process quick and easy.
Accounts: The Everyday Account – there are no monthly bank fees and you’ll have access to the Goalsave tool which allows you to save with no restrictions, fees or penalties and earn up to 10% savings interest per year.
Rewards: You earn Smart Shopper points wherever you shop, and double points when you use your card to swipe or pay at Pick n Pay.
Discovery Bank is the world’s first behavioural bank; a banking system that encourages consumers to make better financial decisions and get rewarded for it. This promotes a healthier banking culture, and allows you to generate higher saving levels. The ultimate vision is to reduce debt and focus on saving which will lead to increased wealth for all South Africans. Discovery aims to effect change by encouraging clients to change these five key controllable behaviors: spend less than you earn, save regularly, insure for adverse events, pay off your property, invest for the long term.
Accounts:
Credit card – an interest fee account for up to 55 days, paired with a day-to-day transaction account.
Vitality Savings Account – a single credit facility, which puts you in control and offers comprehensive benefits. Rewards: Vitality Money; a behavioural change programme that aims to guide and incentivise financial resilience. As a client you will have a vitality money status which ranges from blue to diamond. Your interest rates for loans and savings will be based on your status, and you will be rewarded and move up the levels for making financial savvy choices. You can also download the Discovery Bank app. The mobile banking security features will give you peace of mind by making use of the most advanced fingerprint and facial recognition technology. Biometric identification ensures that no one else will have access to your app.
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