South Africa: Banks not fully exploiting mobile banking, says research

Dec 01, 2015

A majority of banks perform less than 10 per cent of sales via online or mobile banking.

South African banks are not fully taking advantage of online and mobile banking services to engage with customers, according to a new study.

Conducted by financial services provider NPO Efma and financial software company Misys, the survey reveals that a majority of banks (87 per cent) perform less than 10 per cent of sales via mobile banking.

In addition, only 12 per cent of new customer acquisitions are conducted via digital channels, according to the research, seen by News24 Wire.

"Ambitious plans to drive the majority of sales via digital channels are unachievable in the current technology environment," said Efma chief executive officer Vincent Bastid.

The financial institutions surveyed forecast that sales via online and mobile banking will jump from 13 per cent on average today up to 75 per cent within three years.

However, they believe that some challenges remain, with 39 per cent of them citing cultural resistances and 26 per cent blaming technology barriers on their failure to achieve greater digital sales.ADNFCR-2976-ID-801807046-ADNFCR