Maroela Media reports that the Solidarity Research Institute’s (SRI’s) 2022 Bank Charges Report, which was released on Thursday, shows that online banking is turning the banking sector on its head.
“It seems that a revolution is taking place in the banking sector in that Tyme Bank and Bank Zero offer the same services as traditional banks, but at a fraction of the price. It will even be possible to do business at these banks completely free of charge if cash transactions and the sending of money to cell phone numbers are avoided,” commented Theuns du Buisson, economic researcher at the SRI. Although banks are increasingly competitive in terms of added value such as reward programmes, costs remain a determining factor. According to the SRI, it is also clear that competition in the banking sector is on the increase. "The new online banks, which compete purely on the basis of costs, are by far the overall winners when it comes to costs alone. A list of 25 transactions that would cost between R99 and R143 at the traditional banks, costs a mere R21,50 at Tyme Bank, or R25 at Bank Zero. Even when compared to the cheapest accounts of the traditional banks, those with branches, the traditional banks are lagging far behind,” Du Buisson reported. The methodology for this year’s report was adjusted by the SRI to keep pace with changes in consumer behaviour. “Following a survey, we also decided to adjust the list of transactions to include fewer cash transactions this year. These have been replaced with sending money to cell phone numbers, as well as internet transfers,” Du Buisson explained. He indicated that he would not be surprised if the new banks become big banks as well within a few years.
- Read the full original in Afrikaans of the news report in the above regard by Tania Heyns at Maroela Media
- Read Solidarity press statement and access the complete 2022 Bank Charges Report at Solidarity News
Get other news reports at the SA Labour News home page