Absa Bank and low-cost carrier 1time Airlines have partnered to pilot an in-flight banking initiative.
The bank is allowing in-flight passengers to use full banking services that would normally be offered in-branch, except withdrawals and deposits.
"It is about providing services that would include attending to customer complaints, opening of various types of accounts and applying for various types of loans and providing financial advice as a whole," says Bev Counihan, GM for the bank's group service innovation.
Two seats on each plane are allocated to banking personnel, where they are equipped with digital cameras and laptops to cater to customers' banking needs. The pilot consisted of 10 personal bankers, reaching, according to Absa, over 20 000 passengers on nearly 200 1time flights.
Customer information is transported back to the branch once the bankers land at any given destination. The information is synchronised within the secure environment of the Absa network.
"This approach represents a significant shift in the way we gather customer insights, as it allowed for real customer responses to real situations. Besides, we experienced passengers as curious, understanding and generous in their participation," says Counihan.
However, industry analysts have questioned the validity of following through with the initiative, given that local flights are, at most, two hours long. "What can customers gain from in-flight banking that they can't wait two hours to do at their destination?" asks BMI-TechKnowledge financial services principle analyst Althea Bacchialoni.
Absa believes customers will have the same banking needs in the air as they would on the ground. "It's about access, availability and convenience to use in dead time." The bank says the service has been successful so far.
KPMG director in IT advisory Graham Teare says the biggest issue the bank will face is in the security of the information being transported on laptops between the airlines and the branches.
"Client information will be on the laptops after the customers have been served on the plane, and will have to be well protected in case laptops are lost or stolen in transit," he says.
The bank will face heavier implications in this regard when the Privacy Bill is introduced, he adds. "The regulations stipulated in the Privacy Bill will be more stringent in terms of customer information for the banks."
The obvious solution would be to use a remote connection with the bank; however, legal aspects and cost implications make this impossible. "Current flight regulations and lack of satellite availability in the air prohibited access to any client data or Absa systems. Synchronisation has to be done once on the ground," says Absa.
Bacchialoni says there is already a resistance to performing banking transactions in public arenas, such as the Internet and the mobile phone. "Customers now looking at filling banking needs in a public area, like a plane, will have the same resistance."
Absa says it has taken this into account. "We realise how confidential financial matters are and this had been taken into consideration in respect of bank-client confidentiality," says Counihan.
The conversation would be discreet, and few personal details would be discussed in the initial meeting on the plane other than advice provided and notes being taken. This will mostly be used as a point of contact, and reference for the customer and Absa.
The bank is looking at recommendations to consider the future positioning of in-flight banking. Absa says the customer response will dictate whether it will go forward with a full service for the airlines.
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