It seems that consumers are naturally making a shift towards increased digital interactions with their banks through Apps and web portals.
This is both because the banks are promoting them and it is just easier. Gone are the days when you needed cash or to head to the bank to print some sort of proof of banking letter. You can now use an app for most of these functions.
Standard Bank have reported a 30% rise in online transactions, reaching 1.5 billion transactions in the first half of the current financial year, while in-branch transactions have so far dropped by 13%. Similarly, Nedbank experienced a 20% jump in digital servicing volumes alongside a notable decrease in branch visits.
As a result, the banks are reacting and adapting, they’re further expanding their digital capabilities and shrinking their physical presence (like branches) to match this change in demand.
The increased move toward digital banking has brought a noticeable change in how services are delivered. Banks like Nedbank and Standard Bank report that digital transactions have shot up since the pandemic, while in-branch transactions continue to drop. This trend is also reflected in how they manage their physical branches, with Standard Bank making big changes and reducing its branch floor space across the country (and other banks following suit).