‘Branchless banking’ transactions

Selected merchants will offer banking facilities in move to expand domestic footprint as part of Absa’s "branchless" strategy targeting 7-million entry-level clients

SURE KAMHUNGA
Published: 2011/10/12 07:53:29 AM

ABSA yesterday launched an in-store banking facility at selected merchants in a move to expand its domestic footprint.

The launch of the facility is also part of Absa’s branchless banking strategy, specifically targeted at its more than 7-million entry-level clients. Barclays-owned Absa is SA’s largest retail bank by customer numbers, reaching more than 10-million.

SA’s banks are innovating new delivery and distribution channels that are not only cheaper, but also provide convenience to price- sensitive mainstream customers.

FNB recently launched what it said was a first for SA — an innovation called Pay2Cell that allows its account holders to make payments to other FNB customers using only the recipient’s cellphone number.

Ravesh Ramlakan, CEO of FNB Cellphone Banking Solutions, said the solution would benefit 3-million out of its total customer base of 7-million.

Nedbank also allows its customers to withdraw cash from retailers and yesterday it announced the launch of the Nedbank Intelligent Depositor, an ATM allowing customers to deposit cash and also to have immediate access to it.

Absa’s in-store banking facility enabled customers to withdraw or deposit money, purchase cellphone airtime, obtain mini-statements and check balances at point-of-sale machines.

"(In addition), in-store banking forms part of Absa’s overall branchless banking strategy, which aims to provide comprehensive banking services outside of the bank’s traditional branches ..." said Lawrence Twigg managing executive of Absa’s entry-level and inclusive banking unit.

Absa expected to deploy 1000 in-store facilities across SA by the end of this year, and a further 2000 by the end of next year.

Business Day