FNBs mobile banking app is dominated by the younger demographic
Mobile banking has existed in Sub-Saharan Africa for years now, with M-Pesa being a major player in the market. However, South Africa has a slightly different market, and First National Bank have noticed that its mobile banking app is dominated by 18 – 25 year-olds.
While this shouldn’t really be a big surprise, what with many 18 – 25 year-olds having mobiles or smartphones, and presumably bank accounts, the growth of FNB’s app has been phenomenal. Back in 2011, when FNB launched its app, the 18 to 25 year-old demographic accounted for just six per cent of users. Now, just three years on, users have grown by over 100 per cent, now accounting for 14 per cent of FNB mobile banking app users. This growth is in correlation with the increased number of chequeing accounts for the same age group.
Overall growth for FNBs app has been positive, seeing a 100 per cent growth all-round. In early 2014 it reached 750,000 users, and is still growing month-on-month.
While 14 per cent may not sound much at all, the 18 to 25 demographic has seen a huge increase in recent years. It seems that many of them use FNBs app for day-to-day transactions such as balances, payments, and transfers. They also use it to purchase airtime, data, and SMS purchases.
“We think that the growth in the 18-25 year-old market is down to the characteristics and trends shown by the two different generations that overlap within this age group,” Giuseppe Virgillito, head of channel, banking app, FNB Mobile and Connect, said in a statement. “Generation Z, also known as digital natives, were practically born with smartphones in their hands and will naturally adopt digital banking trends once they open their own bank account. On the upper end of the age group are the Generation Y group or Millennials, who are young, working and have adopted digital channels with ease and for on-the-go banking.”
The most popular transaction type on FNB’s mobile app are payments of some form – accounting for up to 50 per cent of all transactions made with it’s app.
“As the increase in banking app users from generation Z and beyond give birth to a new type of banking customer, we are expecting to see new banking needs and trends emerging, and customers who overall interact with their bank on digital channels.”
[Image: r abzug - Flickr]