May 11, 2012
Big opportunity for banks to use Web to communicate, survey showsBack
Africa|Capitec|Columinate|First National Bank|Africa|South Africa|Bank|Basic Banking Functions|Internet Banking|Internet Banking Facility|Internet Banking Offerings|Internet Banking Solution Providers|Investigated Online Banking|Online Transacting|Product|Retail Bank|Scope Internet Banking|Services|Limits
© Reuse this
Banks in South Africa have a significant oppor- tunity to connect more closely with Internet banking users to facilitate communications and use of the full scope Internet banking and online transacting, says market research company Columinate cofounder and senior research specialist Henk Pretorius.
The company has released the results of its SITEsfaction survey of 1 353 users’ views of investigated online banking in South Africa.
“The survey results show that very few Internet banking customers currently use this electronic medium for more than basic banking functions and, with only 24% of users saying they use their Internet banking facility to communicate with their bank, this represents an opportunity for banks to find ways to better connect digitally with their customers,” says Pretorius.
Responses reflecting the overall satisfaction of customers with their Internet banking offerings revealed that there was room for improvement as the industry SITEisfaction score was an unexceptional 55. Against this backdrop, retail bank First National Bank (FNB) scored best on the SITEisfaction index with a score of 68.
However, while retail bank Capitec’s SITEisfaction score (70) actually trumped FNB’s, the number of Capitec customers included in the survey did not reach the mini- mum sample size to be included as a contender for the position of Internet banking SITEisfaction winner. That said, Columinate points to Capitec’s top score as a clear indicator that the bank is worth watching as a “rising star” among South Africa’s Internet banking solution providers.
“Regardless of the reasons for this reticence by customers to fully engage with their banks online, or use their Internet banking for anything more than basic functions, these issues could be limit- ing the ability of banks to capitalise on the full potential of their digital channels,” emphasises Pretorius.
In support of this deduction, he points to survey findings that a mere 28% of users say they log in to their Internet banking pages to obtain information on financial product offerings or account options. This figure drops even more when it comes to managing their bank accounts, with 27% saying they use Internet banking to apply for overdraft or withdrawal limits, 19% to issue electronic stop payment instructions, 17% to apply for a loan of any sort, and just 15% using Internet banking to manage their investment accounts online.
The research also looked at Internet Banking behaviours to contextualise the SITEisfaction scores and some interesting findings emerged. It found that basic transactional and nontransactional activities top the list of typical uses of Internet banking channels, with 88% of respondents indicating that they use Internet banking mainly for viewing balances and making bene- ficiary payments. Accessing bank statements (72%), making interaccount transfers (66%), and setting up recurring beneficiary payments (53%) were the next most popular Internet banking transactions.
Some 53% of users also indicated that they use Internet banking to buy their cellphone airtime, while a mere 5% of those surveyed make use of online share trading or foreign exchange services.
“Most users have yet to fully harness the potential of their online banking facilities,” he concludes.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Other Economy News
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...