Beefing up on digital pays off for banks
Investments made by banks to enhance their digital capabilities and offer clients cost-effective services appear to be paying off.
Nedbank, which is aiming to create a “more agile, competitive and digital” bank, reported a 68% increase in value of transactions facilitated via its app suite to R18.6 billion during the six months ended June 30.
Standard Bank, too, reported good progress. Mobile transactions across its domestic Personal and Business Banking unit rose 55% to almost 500 million transactions over the same period while its ATM and teller volumes fell by 5% and 15% respectively. It recorded 100 million digital transactions across its rest of Africa business, up 47% from the previous corresponding period.
The bank is focusing on enhancing its digital capabilities, re-skilling staff and revising its branch formats in a bid to meet changing client expectations and improving client experience.
FirstRand reported a 7% increase in fee and commission income growth at subsidiary FNB, partly driven by strong transaction volume growth in the bank’s digital and electronic channels, for the financial year ended June 30, 2017.
FNB reported a 68% increase in transactions via its banking app to just under 100 000 000. Mobile transactions recorded rose 20% to 43 818 000 while internet banking transactions ticked up 7% to almost 215 000 000.
Capitec reported 220 753 cellphone and internet banking transactions over the six months ended August 31, up 39% year-on-year. It also reported an increase at self-service terminals from 116 to 2 899. It said 71% of all possible transactions were done on self-help devices with clients banking via the app or phone saving a combined R165 million.