Is In-Store Banking the Next Big Thing in Retail?

Is In-Store Banking the Next Big Thing in Retail?

SHARE

Since launching its In-store banking facility in 2011, Absa has seen over R8 million in transactions recorded over point-of-sale devices at several of its existing merchant retail stores.

This is according to Arrie Rautenbach, Absa Head of Retail Markets who adds that In-store banking has processed more than 50 000 transactions since January 2012.

Banking services available anywhere

Driven by the quest to provide comprehensive banking services outside of the bank’s traditional branches, Absa’s In-store banking facility allows customers to:

  • transact at selected merchant retail stores,
  • withdraw from or deposit money into their accounts,
  • purchase air-time,
  • obtain mini-statements and
  • check balances at point-of-sale machines.

Access to banking for all

The innovation has been identified by Absa as a key tool to achieve the goal of financial inclusion through branchless banking. It also creates foot-flow and additional revenue streams for retailers.

“Absa not only endeavours to be at the cutting edge in terms of providing financial services, but we are also cognisant of our broader responsibility in facilitating the inclusiveness of the large numbers of previously unbanked and under-banked South Africans,” says Rautenbach.

Payment convenience and lower rates

He adds: “This channel has brought about obvious payment convenience to our customers who are now able to perform basic banking transactions at their local shop at reduced rates. Reaching the R8 million transactional benchmark is reflective of the facility’s success in providing easier and cheaper options that will contribute towards bringing this sector of the market into formal banking.”

1 000 facilities established thus far

As of the end of August 2012, there had already been more than a thousand Absa In-store banking facilities deployed across South Africa. The service was enhanced to offer new functionality over and above normal purchases to include basic banking transactions.

“By capitalising on our extensive retail footprint, we were able to extend our In-store banking facility to many of our existing retailers countrywide, thereby ensuring maximum reach and accessibility to a larger customer base. We aim to attract a large percentage of the unbanked and under-banked market, while expanding the scope of transactional platforms for our existing customers,” says Rautenbach.

Entrepreneur
Entrepreneur Magazine is South Africa's top read business publication with the highest readership per month according to AMPS. The title has won seven major publishing excellence awards since it's launch in 2006. Entrepreneur Magazine is the "how-to" handbook for growing companies. Find us on Google+ here.