Also known as online banking, this is an electronic payment system that enables customers of a financial institution to conduct financial transactions on a website operated by the institution.
First introduced in the early 1980s in New York and the UK, internet banking gained increasing popularity in South Africa from 2004. Research by the internet analysts World Wide Worx (WWW) indicated that the number of online bank accounts in South Africa grew by 28^% in 2003, reaching 1.04 million accounts in South Africa.
More banks in South Africa are shifting their business to the digital platform.
The outlook for online banking in South Africa is positive. The growth in the mobile market sector as well as technology in general on the African continent has created numerous opportunities for digital banking platforms. Banks are able to created tailor-made solutions for specific consumers within the unique African market.
A major barrier to entry for many people has been the high data costs in South Africa – something which could change sooner rather than later.
Consumers are able to access a range of services through online banking, such as:
- Being able to transfer funds
- Airtime and data purchases
- Forex trading services
- Being able to edit recipients
- Scheduling payments
- Buying prepaid electricity
- Buying smart devices
- Applying for loans
How does one access online banking?
A customer with internet access and a secure connection would need to register with the institution for the service, set up a password and other credentials for customer verification.
Once the registration process has been completed, individuals can log in and transact.
According to the latest South African Customer Satisfaction (SAcsi) for banking, Capitec and First National Bank came out tops in terms of online banking services.
Capitec achieved the highest online banking satisfaction ratings, followed closely by FNB. The latter bank’s app had the highest satisfaction rate. The FNB banking app has more than 1 million users.