Digital banking offers value for money
Easy, affordable channels
Digital banking has taken the world by storm and locally, FNB Namibia has been leading the pack. Business7 spoke to Jerome Namaseb, the head of transactional banking retail at FNB Namibia.
B7: FNB Namibia recently launched the first fully digital account offering in Namibia, called FNB DigiPlus. In general, what are the benefits of digital banking?
JN: The benefits of digital banking are significant in terms of value proposition to the customer. The ability to manage your financial affairs on self-service channels is a key value proposition at FNB Namibia.
Digital banking provides value-for-money through affordable banking - the majority of transactions conducted through self-service digital channels are priced significantly lower in relation to their non-digital alternatives. Digital banking also allows for access to 24/7 banking services, not constrained by queues or branch opening and closing times. This ensures that customers can bank at a time and in a location that works best for them, guaranteeing overall convenience for customers.
B7: What is the current status of financial inclusion in Namibia? To which extent does an offering like FNB DigiPlus promote financial inclusion?
JN: The last available Namibian Financial Inclusion Survey conducted by the Namibian Statistics Agency in 2017 showed that approximately 22% of eligible Namibians over the age of 16 are financially excluded, and 27% of all individuals in rural parts of Namibia are financial excluded. This is a significant portion of society that does not have access to financial services.
The FNB DigiPlus promotes financial inclusion by being a digital bank account that allows Namibians to open the account anywhere, anytime, without visiting a branch. This ensures that all Namibians can have access to banking irrespective of their location or proximity to a branch.
In addition to this, the product is cardless with zero monthly account fees. Customers will only pay per transaction for transactions done. DigiPlus allows customers the ability to conduct a full range of transactional banking, thus being a truly digital product with no branch banking.
Through the launch of DigiPlus, FNB Namibia has certainly demonstrated commitment, capability and willingness to enable financial inclusion.
While financial literacy may be the starting point, it is only part of the equation as consumers then need actual products and modalities for applying the knowledge to result in actual financial capability.
B7: Do you think the Covid-19 pandemic played a significant role in consumers increasingly using digital services and offerings?
JN: We have seen a significant increase in the usage of digital and self-service channels before Covid-19. It has been an ongoing strategy for FNB Namibia to encourage the uptake of these convenient self-service channels. Thus, I will not say that Covid-19 has been the sole reason for the uptake of digital services and offerings, but it has certainly caused an acceleration in the growth of usage of these channels, among many other strategies and initiatives.
During Covid-19, FNB Namibia offered Covid-19 relief discounts of up to 50% for digital and card transactions to its customers. This was done to ensure the safety of our customers and staff members. These initiatives assisted in discouraging face-to-face interactions noting the risk Covid-19 presented, but also helped encourage the further use of digital services. This subsequently resulted in a significant increase in the use of self-service channels.
During Covid-19 and since then, FNB Namibia has seen impressive adoption of its mobile banking app and other digital channels, facilitating the migration from cash transactions to electronic ones, such as transfers and cashless payments to name a few. In addition to this, some of our newer channels that provide customers with convenient alternatives - such as Cash@Till, eWallet@Till and CashPlus - continue to show good rates of adoption in the market.
B7: Please tell us more about FNB DigiPlus specifically.
JN: The FNB DigiPlus Account was formally launched on 21 July 2022. As mentioned earlier, the product is a digital, cardless bank account with zero monthly fees. Customers only pay for transactions that they conduct. Customers can open the product anywhere, anytime at their own convenience.
Customers who wish to open an easier, and more cost-effective banking product, can dial *140*321# and follow the easy prompts. Non-FNB customers can also open the product by dialing *140*321# and completing all the steps on the phone. We will however need to verify the customer’s identity. As a result FNB Namibia has set up FNB Kiosks up all over the country where customers can take their original identity document to let us verify the ID, and then the account will be active.
In addition to the above, the product also comes with a nifty addition in that a savings pocket will automatically be opened for customers who open a DigiPlus account. It pays customers a competitive credit interest, helping the customer save.
DigiPlus customers can receive money, deposit and withdraw cash without a card, transfer money from the account to their savings pocket, buy prepaid airtime and electricity, send eWallets, make payments, as well as view their balances whenever they want to. The fees on the product are also less than our “traditional” banking accounts.
B7: The DigiPlus account forms an important part of the FNB Namibia’s journey in and ever-evolving world. Please elaborate on the journey and what we can expect going forward.
JN: It has been an exciting journey to date. Innovation is a key focus area at FNB Namibia and our innovation track record in delivering affordable, easy and convenient banking speaks for itself.
Over the years, FNB Namibia has often been first to the market with innovative solutions that aim to improve customer experience.
In 2006 and 2013, FNB Namibia launched cellphone banking and the FNB App respectively, thus ushering in the era of customer self-service in a cost effective convenient manner.
In 2012, FNB Namibia was first to the market with the eWallet solution, which is currently the most popular wallet solution in the market with over 1.3 million active wallets monthly.
In 2017, FNB Namibia launched FNB Rewards. FNB Rewards is a cash-back solution that rewards customers for good banking behavior. The programme was another first in our market and continues to be one of the foremost customer loyalty solutions in Namibia.
In 2018 and 2019, FNB Namibia launched its Cash@Till and CashPlus solutions, which provides customers with a value-for-money way to withdraw cash from their local stores in our communities, thus taking banking solutions closer to our customers.
A lot can be expected of FNB Namibia going forward as we continue to strive to provide relevant solutions for our customers and the Namibian nation. I cannot elaborate too much on what is to com, but can assure our customers and the nation alike that we will continue to innovate.
B7: Digital development is a complicated, lengthy and costly exercise. Please elaborate on FNB Namibia’s investment in this regard.
JN: Digital development is costly, but the benefits to customers to be able to bank wherever, whenever is priceless.
Once we have announced our results, we will be happy to share what we’ve spent on customer solutions and experience over the past years. ‘How can we help you?’ is the driver of innovation for FNB Namibia.
JN: The benefits of digital banking are significant in terms of value proposition to the customer. The ability to manage your financial affairs on self-service channels is a key value proposition at FNB Namibia.
Digital banking provides value-for-money through affordable banking - the majority of transactions conducted through self-service digital channels are priced significantly lower in relation to their non-digital alternatives. Digital banking also allows for access to 24/7 banking services, not constrained by queues or branch opening and closing times. This ensures that customers can bank at a time and in a location that works best for them, guaranteeing overall convenience for customers.
B7: What is the current status of financial inclusion in Namibia? To which extent does an offering like FNB DigiPlus promote financial inclusion?
JN: The last available Namibian Financial Inclusion Survey conducted by the Namibian Statistics Agency in 2017 showed that approximately 22% of eligible Namibians over the age of 16 are financially excluded, and 27% of all individuals in rural parts of Namibia are financial excluded. This is a significant portion of society that does not have access to financial services.
The FNB DigiPlus promotes financial inclusion by being a digital bank account that allows Namibians to open the account anywhere, anytime, without visiting a branch. This ensures that all Namibians can have access to banking irrespective of their location or proximity to a branch.
In addition to this, the product is cardless with zero monthly account fees. Customers will only pay per transaction for transactions done. DigiPlus allows customers the ability to conduct a full range of transactional banking, thus being a truly digital product with no branch banking.
Through the launch of DigiPlus, FNB Namibia has certainly demonstrated commitment, capability and willingness to enable financial inclusion.
While financial literacy may be the starting point, it is only part of the equation as consumers then need actual products and modalities for applying the knowledge to result in actual financial capability.
B7: Do you think the Covid-19 pandemic played a significant role in consumers increasingly using digital services and offerings?
JN: We have seen a significant increase in the usage of digital and self-service channels before Covid-19. It has been an ongoing strategy for FNB Namibia to encourage the uptake of these convenient self-service channels. Thus, I will not say that Covid-19 has been the sole reason for the uptake of digital services and offerings, but it has certainly caused an acceleration in the growth of usage of these channels, among many other strategies and initiatives.
During Covid-19, FNB Namibia offered Covid-19 relief discounts of up to 50% for digital and card transactions to its customers. This was done to ensure the safety of our customers and staff members. These initiatives assisted in discouraging face-to-face interactions noting the risk Covid-19 presented, but also helped encourage the further use of digital services. This subsequently resulted in a significant increase in the use of self-service channels.
During Covid-19 and since then, FNB Namibia has seen impressive adoption of its mobile banking app and other digital channels, facilitating the migration from cash transactions to electronic ones, such as transfers and cashless payments to name a few. In addition to this, some of our newer channels that provide customers with convenient alternatives - such as Cash@Till, eWallet@Till and CashPlus - continue to show good rates of adoption in the market.
B7: Please tell us more about FNB DigiPlus specifically.
JN: The FNB DigiPlus Account was formally launched on 21 July 2022. As mentioned earlier, the product is a digital, cardless bank account with zero monthly fees. Customers only pay for transactions that they conduct. Customers can open the product anywhere, anytime at their own convenience.
Customers who wish to open an easier, and more cost-effective banking product, can dial *140*321# and follow the easy prompts. Non-FNB customers can also open the product by dialing *140*321# and completing all the steps on the phone. We will however need to verify the customer’s identity. As a result FNB Namibia has set up FNB Kiosks up all over the country where customers can take their original identity document to let us verify the ID, and then the account will be active.
In addition to the above, the product also comes with a nifty addition in that a savings pocket will automatically be opened for customers who open a DigiPlus account. It pays customers a competitive credit interest, helping the customer save.
DigiPlus customers can receive money, deposit and withdraw cash without a card, transfer money from the account to their savings pocket, buy prepaid airtime and electricity, send eWallets, make payments, as well as view their balances whenever they want to. The fees on the product are also less than our “traditional” banking accounts.
B7: The DigiPlus account forms an important part of the FNB Namibia’s journey in and ever-evolving world. Please elaborate on the journey and what we can expect going forward.
JN: It has been an exciting journey to date. Innovation is a key focus area at FNB Namibia and our innovation track record in delivering affordable, easy and convenient banking speaks for itself.
Over the years, FNB Namibia has often been first to the market with innovative solutions that aim to improve customer experience.
In 2006 and 2013, FNB Namibia launched cellphone banking and the FNB App respectively, thus ushering in the era of customer self-service in a cost effective convenient manner.
In 2012, FNB Namibia was first to the market with the eWallet solution, which is currently the most popular wallet solution in the market with over 1.3 million active wallets monthly.
In 2017, FNB Namibia launched FNB Rewards. FNB Rewards is a cash-back solution that rewards customers for good banking behavior. The programme was another first in our market and continues to be one of the foremost customer loyalty solutions in Namibia.
In 2018 and 2019, FNB Namibia launched its Cash@Till and CashPlus solutions, which provides customers with a value-for-money way to withdraw cash from their local stores in our communities, thus taking banking solutions closer to our customers.
A lot can be expected of FNB Namibia going forward as we continue to strive to provide relevant solutions for our customers and the Namibian nation. I cannot elaborate too much on what is to com, but can assure our customers and the nation alike that we will continue to innovate.
B7: Digital development is a complicated, lengthy and costly exercise. Please elaborate on FNB Namibia’s investment in this regard.
JN: Digital development is costly, but the benefits to customers to be able to bank wherever, whenever is priceless.
Once we have announced our results, we will be happy to share what we’ve spent on customer solutions and experience over the past years. ‘How can we help you?’ is the driver of innovation for FNB Namibia.
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