The survey on consumer attitudes found<\/span> that more than two-<\/span>thirds of South Africans (69%) <\/span>believe that the country\u2019s <\/span>banks will transition to a fully <\/span>digital banking system within <\/span>five years. <\/span>This consumer paradigm shift <\/span>goes beyond an expectation <\/span>that banks will simply offer <\/span>digital apps and websites atop <\/span>their core brick-and-mortar <\/span>services and operations<\/span><\/p>\n And a majority of South Africans <\/span>(60%) believe that in just five <\/span>years, there may be no need <\/span>for banks to have physical <\/span>branches at all.<\/span><\/p>\n Presenting the data on Monday (29 August), Discovery Bank said that banks cannot accomplish the transition to a cashless society by themselves, however.<\/p>\n “A clear regulatory policy is essential to have a roadmap to a cashless society,” the bank said, adding that regulatory changes are needed to drive down costs and assure all potential users that the cashless system is secure.<\/p>\n The new report by the BCG surveyed 1,000 South African consumers from various walks of life, 400 businesses, and several industry experts to explore what they think the future of banking will be.<\/p>\n Managing director of BCG, Tijsbert Creemers, said that in terms of a cashless banking system, there is still a legacy issue in which people are used to doing transactions in cash.<\/p>\n It’s a long-held habit, he said, and there are concerns around the reliability of online banking and its participation in the informal economy.<\/p>\n BCG noted that among the approximately 11 million \u201cunderbanked\u201d residents of underserved townships or rural areas, the cost of going cashless is often prohibitive. Consumers also often still require in-person banking for specific needs such as home loans, retirement queries or onboarding into the bank, Creemers added.<\/p>\n However, Martin Grunewald, the chief business officer of clearing house BankservAfrica, said that even if there is a hesitancy in the market, Discovery and other banks need to move toward and plan for a cashless future.<\/p>\n “If we just sit back and accept that that’s the way it will always be, we don’t reimagine that world. I can imagine a world that is cashless; maybe it’s not even five years out, but we can dent it,” he said.<\/p>\n On top of consumers wanting cashless systems, the data showed that more than two-thirds of South Africans believe that the country\u2019s banks will make a full transition to digital banking within the next five years.<\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2022\/08\/DiscoveryBank.png\")
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