FNB's latest Banking App statistics reveal that the youth market, age 18 - 25 years, have shown the highest growth in App uptake and usage with an 8% increase from 6% in 2011 when it launched, to 14% this year - the highest growth across all age demographics.
As of 31 December 2013 the FNB Banking App has seen growth of over 100%, this is according to FirstRand's interim results announced yesterday. The FNB banking app reached the 750 000 active user mark early in 2014 and is still showing a month-on-month increase in number of transactions and active App users. Although cheque account users aged 18 -25 is small in comparison to other FNB customer groups, the portion of this market has also doubled since 2011. Their behaviour revolves around day-to-day transactions such as balances, payments, transfers, prepaid airtime, data and SMS purchases.
According to Giuseppe Virgillito, Head of Channel, Banking App, FNB Mobile and Connect, "18 - 25 year olds now account for 14% of active users on the platform, which correlate with the growth in cheque accounts for this age group."
"We think that the growth in this market is down to the characteristics and trends shown by the two different generations that overlap within this age group. 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," continues Virgillito.
80% of all transactions on the FNB Banking App take place between 07:00am and 19:00pm daily and unlike Cellphone Banking, which is mostly used for prepaid transactions such as prepaid airtime and electricity purchases, the most popular transaction on the FNB Banking App are payments, which make up 50% of the transactions made via the 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, expectations that are changing and a customer that overall, interacts with their bank on digital channels," concludes Virgillito.