FNB offers free cellphone banking

By Kirsten Doyle for FNB
Johannesburg, 24 Apr 2007

First National Bank (FNB) is offering its customers free cellphone banking from 1 June, allowing them to perform any number of cellphone banking transactions at no charge.

James Fowle, FNB pricing executive, says the zero-rate will apply to transactions such as transfers, prepaid purchases, mini-statements, third-party payments and balance enquiries. Users need to register online, he says.

FNB says it made this move to encourage customers to shift to the cost-effective electronic banking channels, as well as enable customers who have had to traditionally travel long distances to reach branches or ATMs.

Xolasi Vapi, FNB spokesman, says most people, even ones living in remote and rural areas, have cellphones and signal has certainly improved over the years. "Access barriers to banking have been lowered through the setting up of the Mzansi account, whose users will also benefit from the free cellphone banking we are announcing today.

"FNB would prefer its customers to shift to electronic banking because it is a cheaper and more convenient way of doing banking, using a handset device that the majority of South Africans have. Through cellphone banking, we are able to bring many people who have no physical access to banking into the banking loop," adds Vapi.

"Our success in SA and Botswana, where we launched cellphone banking in November last year, indicates cellphone banking is gaining resonance in the minds of many people, with prepaid services like airtime, electricity and Telkom airtime driving transaction volumes."

According to Fowle, electronic banking is convenient because it addresses security risks associated with handling cash and offers 24-hour access to banking.

He says there are 370 000 registered cellphone banking users and FNB aims to have a million users by the end of 2008. "Cellphone banking transaction volumes sit at about 850 000 per month, and FNB aims to up this to a million by August 2007."