South Africans eBanking: A Growing Trend

Internet banking is gaining momentum in South Africa, and customer online banking behaviors are continuing to evolve.

According to BizCommunity.com, there is new online research from Columinate that focuses on South African consumers’ usage and perception of online banking. The survey corresponded with over 1,400 South African consumers who use eBanking, and discussed habits and attitudes about their experiences. The consumer responses presented several trends and important insights for those in the payments space.

Columinate explained that the survey’s results strongly supported the notion that online banking is quickly changing.

Henk Pretorius, CEO at Columinate, stated, “This year we saw big changes in the way customers approach their digital banking. The increased availability of mobile apps, wider usage of self-service features and new security concerns are a few of the changes that banks and customers have had to adapt to.”

We take a look at some of the study’s more interesting findings in this PYMNTS.com Data Point.

Rise of Mobile Banking In South Africa

The survey indicated a significant increase in eBanking amongst South African consumers in the last year. More people are using smartphones and tablets to complete banking transactions and view account information. Consumers are accessing their online accounts both through mobile applications provided by the bank as well as online phone browsers. In 2012, 42 percent of South Africans said they were using their mobile phones for banking. The number of mobile users increased to 54 percent by 2013. Only 10 percent said they were using tablets for eBanking in 2012, and by 2013 this number jumped to 17 percent. The report stated that the trend is likely to continue increasing with new mobile applications constantly being released. The four big banks in South Africa should be paying close attention to these results, as 44 percent of respondents said they intend to use banking applications if they were made available.

How South Africans Use Online Banking

Further survey results reported that users are taking advantage of online banking services and using multiple features. Along with making online payments and checking account balances, 59 percent of South Africans are logging on to online banking sites to apply for new products, such as overdraft programs or loans. Consumers are also using online services to purchase airtime (60 percent from 53 percent), data (29 percent from 23 percent) and lottery tickets (19 percent from 13 percent).

“FNB users are most likely to report that their eBanking is user-friendly, innovative and secure. FNB has also succeeded in getting users to utilize more of the available services than other banking users. This has positive implications for both the users who capitalize on the convenience of Internet banking and for the bank to ensure greater customer loyalty,” Pretorius stated.

Online Banking Concerns

In regards to concerns, the survey reported that consumers said fraud remains a pressing concern. The number of people who have fallen victim to fraud rose to over 50 percent since last year. In addition to the growth of fraud activity, criminals are also coming up with different ways to scam.

Pretorius said, “The reluctance of banking users to use these services is predominantly due to security concerns, lack of clarity on protection from users’ banks if accounts are linked to the service, and low awareness of the advantages offered by these tools.”

To see more South African online banking stats, view the complete infographic below.