Go Banking is urging South Africans to use their cellphones as a means to reduce the time and money spent on banking transactions.<\/p>\n
Head of Go Banking, Toby Wooldridge, says that although it is estimated that the number of people using cellphone banking doubled in 2007, too many South Africans still do not realise time and money that can be saved by using cellphones to conduct banking transactions. <\/p>\n
There are 17,5m cellphone users in this country, which means that the vast majority of people with a bank account have access to a cellphone. In fact, according to the 2007 FinScope survey for the FinMark Trust, roughly 60% of South Africans over the age of 16 have a bank account and 66% of them have access to a cellphone. Yet only 4% use their cellphones for banking.<\/p>\n
Wooldridge says he expects this situation to change in the near future once people realise the advantages of cellphone banking. "People often overlook the costs involved in making branch visits, which with the rising petrol costs, can add up very quickly. From a time-saving perspective, why sit in traffic getting to a branch or wait for the Internet connection to be restored when all you have to do is tap a few buttons on your cellphone."<\/p>\n
He adds that there are a number of other reasons why cellphone banking is increasingly compelling. "Mobile devices are also becoming more powerful and sophisticated, increasing the functionality and ease of use through better user interfaces," says Wooldridge. "The modern economy also demands mobility, be it local or global mobile technology. It is therefore becoming a necessity rather than a luxury."<\/p>\n
When comparing mobile to Internet banking, Wooldridge believes that the two will co-exist, and that Internet banking is by no means a thing of the past. With that said, he believes however that mobile banking will soon have a wider acceptance in SA than Internet banking.<\/p>\n
"Firstly, local adoption of cellphone technology far exceeds that of the Internet, particularly SMS technology. Secondly, it is more cost-effective to use mobile banking. The menu-driven approach of SMS banking will also make it easier to use, as opposed to the Internet. Finally, mobile banking can be done any time, anywhere; as opposed to the Internet, where most people are still limited to a connection point and therefore dependent on the electrical grid."<\/p>\n
With regards to digital banking as a whole, Wooldridge’s opinion is that it has completely changed the relationship and banking behaviour of the customers that use it. "Convenience, efficiency and control are the three major benefits to clients. Digital banking customers seldom recall the last time they visited a branch or stood in a queue."<\/p>\n
There are two options available for people wishing to do their banking with a mobile phone.<\/p>\n
Firstly, there is Wireless Application Protocol (WAP). To access this, the phone needs to be WAP-enabled, i.e.: the handset must be WAP2 with GPRS\/EDGE or 3G-enabled. Secondly, there is the Unstructured Supplementary Service Data (USSD) Banking service, commonly referred to as ’SMS banking’. SMS banking is accessible via any phone on the GSM network that has the ability to send and receive SMS’.<\/p>\n
How does SA fare in comparison to the rest of the world? According to Wooldridge: "SA’s mobile banking functionality is actually on a par with international standards. Currently, most local banks have adopted WAP and USSD2 banking, both of which are internationally accepted and widely used platforms for mobile banking. On an acceptance level however, we are unfortunately behind the rest of the world."<\/p>\n
He says this adoption level can be directly linked to education; and convincing customers that mobile banking is in fact a normal, safe and effective transaction medium is still proving to be a challenge. Another challenge facing mobile banking lies in the need to make bank systems more compatible with various mobile devices, as well as to ensure that this form of banking is foolproof in terms of safety.<\/p>\n
Wooldridge is confident that we have only seen the tip of the iceberg when it comes to mobile banking. "While we are still a long way off from doing general payments at stores and restaurants on our mobile phones, as there are still too many security and system concerns needing to be addressed, these possibilities will become reality at some point." <\/p>\n