The Impact of the Internet and Mobile Banking on the South African Banking Industry Presented by: SYNDICATE 1 FUNCOM 0 Lesego Koapeng 0 Bongane Zwane 0.

The Impact of the Internet and Mobile Banking on the

South African Banking Industry

Presented by:

SYNDICATE 1

FUNCOM

0 Lesego Koapeng0 Bongane Zwane0 Nyambeni Nefale0 Taryn Thorpe0 Dieketseng Meletse0 Katja Janicke

13 March 2013

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Agenda

What is Mobile Banking

Mobile Banking Timeline

Developments in the Telecoms space

Factors Influencing Mobile Banking

The Growth of Mobile Banking in South Africa

Benefits of Mobile Banking

Key Challenges in Mobile Banking

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Mobile Banking

Usage of a mobile device to perform online banking tasks

Mobile banking has been on the increase

Mobile devices are well positioned for making payments

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Timeline

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e

1996ABSA

launches first online

banking services

2000 ABSA

introduces mobile banking

2008ABSA

launches cash send

2012The other

banks followed suit

2011FNB offers the

first mobile banking

application

2009FNB launches

e-wallet

2010 Vodacom and

Nedbank launch M-pesa

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Developments in the Telecoms Space

New Technology-Based Services in South Africa

Mobile Banking increases people’s access to finance

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9%

92%

Europe

Mobile Banking

Non-Mobile Banking

37%

63%

South Africa

Mobile Banking

Non-Mobile Banking

Source: MOBILE BANKING USE BY MOBILE DEVICE USERS (World Wide Worx Feb 2011)

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Increasing Popularity of Mobility in SA

Increase in the ownership of mobile phones in South Africa

In 2011: 39% of urban and 27% of rural users were browsing the internet on their mobile

devices

Mobile internet offers a cheaper alternative to stationary internet

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Benefits of Mobile Banking

Retaining bank customers

Increased market share – reaching the unbanked

Reducing costs and improving bank efficiency

Improved product and services

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Key Challenges in Mobile Banking

Security

Customer relationship

Competition and partnership

Market share

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Conclusion

Banks stand to benefit significantly from:

Cost savings,

Customer growth

More spending from the user community that will increase the

profit margins.

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1013/03/2013 Funcom Syndicate

“I saw a bank that said 24hour banking but I don’t have that much time” Steven Wright

“There is a way of transferring funds that is even faster than electronic banking… It’s called marriage” unknown

Quotes