BANKING NEWS
players to increase their exposure to African banking. Further
attractions include low levels of banking penetration, African
banks’ strong levels of deposit funding and the scope for buyers
to improve acquirees’ operational efficiency. The case for
investment in African banking is clearly improving.
The report shows that Nigeria also offers growing potential
for M&A activity. The banking sector has gone through several
rounds of restructuring in response to regulatory reforms and
government intervention aimed at raising capital levels and
strengthening balance sheets. Other African markets, such as
Kenya, have similar potential for banking consolidation and
rationalisation, in addition to their attractive growth prospects.
Private equity funds willing to invest in risk-carrying businesses
remain in the minority, but are expected to change over time
as regulators become more comfortable with private equity
ownership, the report states.
‘In the longer term, patterns of banking M&A will become more
complicated and less predictable,’ says Venables. ‘As in other
industries, it will become more important, not just to pick the
right market, but also the right target.’
E-banking survey reveals surge
ONLINE RESEARCH SPECIALISTS Columinate have released
the results of the second annual Internet Banking SITEisfaction
survey, the most comprehensive report on customers’ usage
and perceptions of e-banking in South Africa. The survey
quizzed over 1400 South African e-bankers about their online
banking habits and attitudes, and revealed several interesting
trends. ‘This year we saw big changes in the way customers
approach their digital banking,’ explains Columinate CEO
Henk Pretorius.
The survey revealed that the South African e-banking
landscape has in the last year seen an increase in the number
of customers who use mobile phones and tablets to do their
banking. Mobile phone banking, through both banking apps
and phone browsers, has increased to 54% from 42% last year.
E-bankers who do their banking via tablets have
risen to 17% compared to 10% last year. This
E-bankers who
‘FNB users are most likely to report that their
trend is likely to continue with Absa’s recent
do their banking
e-banking is user-friendly, innovative and secure,’
mobile app release, which means that
via tablets have
Pretorius says. ‘FNB has also succeeded in getting
the traditional “big four” banks now all offer
users to utilise more of the available services
a mobile banking app. Capitec might be missing
than other banking users. This has positive
an opportunity in this regard, with 44% of its
implications for both the users who capitalize on
customers indicating that they intend to use
the convenience of internet banking and for the
a banking app should one be made available
bank to ensure greater customer loyalty.’
to them.
Pretorius notes that the variety of financial fraud
Users are not only using more devices to
types has increased in recent years. ‘Banking
access their bank accounts, but are also making
customers have to contend with familiar and novel
use of more of the available online banking
attacks on their accounts: phishing, smishing,
features. According to Pretorius, the results
deposit refund scams, 419 scams and so on. It’s
showed that aside from making payments and
no surprise then that awareness of the different
managing accounts, online banking users are
scams differs widely. While 90% have heard of
becoming increasingly likely to log in to apply for
phishing, only 54% have heard of the SMS version of this
new banking products (59%) such as loans and overdrafts.
scam, called ‘smishing’. This shows the difficulty in educating
Users also showed an increased likelihood to buy airtime (60%
customers on how to be vigilant against these attacks.’
up from 53%), data (29% up from 23%) and lottery tickets (19%
Various online financial management tools have been launched
up from 13%) via their online banking service.
locally by banks and third parties. The survey revealed that
Customer satisfaction with internet banking facilities was
awareness (11%) and usage (2%) of these services remain very
compared again this year using Columinate’s SITEisfaction
low and on par with last year. Pretorius says, ‘The reluctance
measure. The results revealed that FNB has stretched its lead
of banking users to use these services is predominantly due to
over the competitors by attaining a SITEisfaction score of 75,
security concerns, lack of clarity on protection from users banks
the highest score measured to date. Capitec achieved an overall
if accounts are linked to the service, and low awareness of the
second position in the ranking with a score of 62 – outdoing
advantages offered by these tools.’
three more-established players. Standard Bank and Nedbank
tied with a score