Card-free banking service gains traction
Isaac Pinielo | Friday March 11, 2016 13:55
One of the largest banks in the country, First National Bank of Botswana (FNBB) has the FNB Smartphone Banking App that works on IOS Apple, Blackberry 10 as well as Android Smartphones.
The bank also introduced eWallet that allows FNBB customers to send money to anyone with an active mobile phone number. FNBB says cardless cash withdrawal serves as a complementary feature, which ensures that one can gain access to cash whenever needed. FNBB’s director of marketing and communications, Obonye Malope said cardless service is a functionality that allows withdrawals and deposits on self-service devices or ATM’s without the use of an ATM card.
“The functionality gives our customers banking convenience because with the extensive ATM network that FNB has, customers have 24-hour access to their funds,” she said. FNBB has a total of 209 ATMs, out of which 36 ATMs have deposits while 34 are slimline ATMs. “All the 209 FNB ATM devices support the cardless functionality,” she stressed. The FNBB cardless does not need scanning of bar codes. The process of cash withdrawal requires one to log into cellphone banking, select banking option, select cardless withdrawal, select amount and create a PIN number that they will use at the ATM to withdraw cash.
“This is a safer and user friendly process that enables quick access to cash using cellphone banking and the FNB Banking App which is downloadable from relevant App stores,” she added.
She said the advantages of using smartphones for banking include convenience, security, cost effective and fastness.
Malope explained that Smartphone banking uses cardless deposits and withdrawals, therefore it eliminates the threat of skimming and shoulder-surfing that is possible with the use of an ATM card.
“It also reduces theft exposure by removing personal payment data from physical transactions,” she said.
According to Malope, fraudulent transactions through skimming can have cost implications to banks linked to losses incurred, adding that it also negatively affects trust between customers and their banks.
Last year, Stanbic Bank Botswana also introduced Instant Money service, which falls under the bank’s Self Service Channels offering. Stanbic Bank public relations manager, Ruth Modisane explained that this is a cardless person-to-person money transfer product that allows banking users to send money to anyone, anywhere. One can then go to any Stanbic Bank ATM to withdraw the cash.
The service, which is targeted at individuals without bank accounts, joins the likes of FNBB, Barclays, cellphone giants Orange, Mascom that in recent times introduced their various versions of cell-phone banking with great success.
Modisane said with increased technology comes enhanced platforms for convenience, adding that this is a welcome development, so long as every measure is taken to ensure comfort and security of the user.
“Instant Money provides banking users with a new and cost-effective way to send and cash out electronic vouchers. In today’s busy times, we understand that customers require quick, convenient and safe platforms for their banking needs,” she said.
She added that with Instant Money, one can buy and send instant money from their bank account via Internet banking or cellphone banking with ease. In order to redeem the Instant Money Voucher, Modisane said all one needs is a cellphone, the secret PIN and the voucher reference number.
She noted that all of the 29 ATMs that the bank has allow for the use of cardless system. According to Modisane, the advantages of using smartphones for banking are plentiful and that they can sometimes vary from bank to bank. “Broadly speaking, this hinges on the convenience factor. One can bank on the go without having to go into a branch, or needing to adhere to set operational hours as you can bank on your smartphone 24/7, 7 days a week,” she added.
Certain functionalities also ensure efficiency, citing as an example, prepaid mobile top-up or buying electricity.
She said small businesses can now manage their money via their smartphones, thus making money management and even budgeting easier as one has ready access to their finances.
“At Stanbic Bank, we want to move our customers forward through a better banking experience, and smartphone banking is one way in which we do this,” she stressed.
She also said that moving into a cardless society is becoming a real possibility, and the use of smartphone banking means even less card usage. She added that the use of smartphones reduces the risk of card cloning or skimming.
Other prominent banks such as Barclays Bank Botswana have also introduced card-free services. Barclays Bank has CashSend, which is a money transfer service on its ATMs, which allows one to send or receive cash at any Barclays ATM nationwide.
The bank stated that the service is easy and convenient, adding that the recipient does not need to be a Barclays’ customer or have an ATM card to withdraw the transferred cash. The bank has over 140 ATMs nationwide. It is understood that Standard Chartered Bank will soon introduce InstantMoney payment solution, stating that recipients, who do not need to be customers, can immediately withdraw the funds at any Standard Chartered Bank ATM by simply keying in the access code and PIN once sent to them by the sender. InstantMoney is essentially a card-less form of cash withdrawal that allows customers to send money to themselves, friends, staff or relatives in a convenient and accessible manner.