The 6 biggest reasons why South Africans hate using their online banking app

Despite a 33% increase in the number of customers using the FNB Banking App, who earn less than R300,000 per annum, some customers in this segment are still reluctant to take advantage of digital banking channels due to certain barriers and misconceptions.

This is according to Ryan Prozesky, CEO of value banking solutions at FNB.

“When engaging customers about the benefits of cellphone, online and app banking, we found that once they understand the benefits and trial digital banking, they are much more receptive to these technological advancements,” he said.

Prozesky unpacked some of the biggest misconceptions and barriers that prevent this market from banking digitally.

1. Lack of exposure and knowledge – given the virtual nature of digital banking channels, customers are largely uncertain as to how they work, how to access or set them up, as well as what they can do on digital channels.
2. Established behaviour – while some customers are aware of digital channels they are still more comfortable banking through branches due to the entrenched creditability and trust they have in branch agents in a face to face environment.
3. Cost – there’s a misconception that digital banking channels are expensive relative to conventional platforms, due to high data costs and banking fees, said Prozesky. Banking via digital channels is significantly cheaper than transacting within branch and there are no travelling costs associated.
4. Fear and lack of trust in their own ability – some have tried using these channels, but find it too difficult to navigate them at first. Most are intimidated by technology and fear making costly mistakes when transacting, especially in context of limited financial resources.
5. Fraud – trust is still an ongoing issue, coupled with the fear of becoming victims of fraud due to a lack of knowledge and exposure to digital banking channels. Since security and privacy are of paramount importance, FNB makes use of a number of security features to protect customers, said Prozesky.
6. Access – despite the smartphone penetration rate increasing, a small portion of customers stated that they don’t have access to digital banking channels, said Prozesky.

Prozesky highlighted that digital channels allow customers to bank on the go through multiple devices of their choice and immediately reduce the cost of banking.

“With the world going digital, it is essential for consumers to take advantage of innovation and technology that has been designed to offer them the best value, experience and service possible,” he said.

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