http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.18Change: 0.05
R/$ = 11.24Change: -0.02
Au 1210.44 $/ozChange: -7.53
Pt 1304.00 $/ozChange: -5.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
May 11, 2012

Big opportunity for banks to use Web to communicate, survey shows

Back
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
Africa||Africa||Services|
africa-company|capitec|columinate|first-national-bank|africa|south-africa|bank|basic-banking-functions|internet-banking|internet-banking-facility-industry-term|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 Statistical Releases News
During the three months ended June 30, the total turnover of all industries in the South African economy, excluding agriculture, financial intermediation, insurance and government institutions, declined by 0.5% quarter-on-quarter to R1.86-trillion, with the mining...
Purchases of electricity by municipalities increased by 27.8% quarter-on-quarter for the three months ended June 30, to R15.26-billion, while purchases of water increased by 1.4% over the period, data released by Statistics South Africa (Stats SA) on Monday, has...
Sacci CEO Neren Rau
The South African Chamber of Commerce and Industry (Sacci) on Friday expressed concern about the marked increase in crimes against business, evident in the 2013/14 crime statistics released by the South African Police Service (SAPS). Sacci CEO Neren Rau said the 13%...
Article contains comments
More
 
 
Latest News
Updated 45 minutes ago As part of new listing requirements implemented by the JSE on Tuesday, companies listed on select international bourses will now be able to fast-track their secondary listings on the JSE. The local bourse announced to the market in August that it had made global...
Updated 45 minutes ago Mauritius has been ranked first in the Ibrahim Index of African Governance (IIAG) 2014 for the eighth consecutive year, while South Africa ranked fourth overall and third in the region. Among the 52 countries rated by the Mo Ibrahim Foundation, Mauritius scored the...
Updated 1 hour 28 minutes ago The Companies and Intellectual Property Commission (CIPC) says it is encouraged with the response to its new look and online transaction website. The new website was launched on 17 September, and the commission says it has received both positive and negative feedback.
More
 
 
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
The South African new vehicle market is likely to reach around 630 000 units in 2014, down from the 650 000 units recorded in 2013, says Toyota South Africa Motors (TSAM) president and CEO Dr Johan van Zyl. Van Zyl is also president of the National Association of...
Efforts by the Kenya government to increase energy generation by 5 000 MW over the next three years received a major boost following the award of a $2-billion contract to build a coal power plant in Lamu.  Despite allegations of irregular tendering process, the...
Using crafty wordplay on a well-known Internet meme, brilliant South African-born US entrepreneur and businessperson Elon Musk announced that Tesla Motors would not initiate patent lawsuits against anyone who, in good faith, wanted to use its technology. Instead,...
August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37 953 units, contracted by 1 047 units, or 2.7%, compared with August last year.
With South Africans facing the challenge of reducing electricity consumption, the biennial Eskom Energy Efficient Lighting Design Competition, to encourage the integration of energy efficient lighting in architectural, engineering and interior design, received a...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks