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The advantages of digital transacting over other modes of banking have been highlighted by the lockdown. Although remote banking has been gaining ground in South Africa long before the lockdown, the limitations on physical movement imposed by the lockdown have given online and mobile banking a significant boost.
The current environment will most likely see more people opt for digital banking platforms. This is confirmed by a recent Nielsen syndicated study on the impact of COVID-19 on consumer behaviour in South Africa, which reports that 37% of South Africans say they are shopping and transacting more online.
“Apart from being more convenient, digital banking and shopping are cheaper than traditional channels. The lockdown and its effect on the economy have made consumers more conscious of costs, and has increased the appeal of affordable solutions,” says Will Mason, Head of Business Development at Old Mutual.
One way that Old Mutual is said to make banking more affordable is through the Old Mutual Money Account, which costs only R4.95 per month and does not charge for card payments and online purchases.
This account was rated by the SA Retail Banking diagnostic report as one of the most affordable, low-cost transactional accounts in South Africa. It is also linked to a money market unit trust, this enables customers to save a percentage of their spend through the unique Swipe and Save feature.
Each time the user swipes/taps their card, the desired savings amount is automatically transferred to the “save” pocket and invested into a money market unit trust account. Customers can set their Swipe and Save anywhere between 1-15 % or can choose to turn it off altogether (i.e. 0%).
This means if consumers set their Swipe & Save to 10% and swipe or tap their card for purchases that cost R100, another R10 will be automatically transferred into their Save Account. The aim of the product is to help South Africans across the income spectrum become “instant investors” by encouraging simple, automatic savings that can be accessed easily when needed.
“Not only does this give customers a regular, convenient way of saving, it also puts them in complete control of how much they save,” says Mason.
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