FNB takes on cheap international calling

Johannesburg, 27 Sep 2007

First National Bank (FNB) has added low-cost international airtime to its range of prepaid services.

Len Pienaar, FNB's Mobile and Transact Solutions CEO, says the organisation has seen significant uptake on the prepaid offerings of its cellphone banking service. In the last 12 months, prepaid transactions have grown from 12 million per month to 22 million, he says.

"About three-quarters of our cellphone banking subscribers are holders of entry-level bank account offerings. Our inclusion of prepaid international airtime from Globel is really the next logical step. It takes low-cost international calling to the lower income earners and builds on the breadth of our offerings," he explains.

Globel distributor Liquid Telecom offers two options to access lower cost international destinations.

For now, co-operative marketing with FNB will focus on the "call back" option, says Liquid Telecom executive director Ryan Solovei.

"We have a direct call option, which we will ultimately want to move customers onto. However, the call back option is somewhat easier to understand for first time users. Once a person has used one of our offerings, experienced the call quality and seen the saving, we are confident they will return of their own volition."

Solovei acknowledges that few call back type offerings have excelled in the local market. However, he contends this has been a case of minimalist marketing and a focus on the top end of the market.

"Typically the top end of the market has access to voice over Internet Protocol services anyway through their home computers. However, the lower end of the market - with family in other African destinations - doesn't have that luxury. Cost is also a greater concern at this level," he explains.

Globel has services available for over 120 countries. Calls to African countries like Namibia, Botswana and Zimbabwe are charged at around 69c a minute.

First time users do not need to acquire a card, they only need to buy airtime worth between R10 and R1 000 from FNB Cellphone Banking, says Pienaar.

"The focus here is convenience and ease of use."