What are the best and worst digital banks in South Africa in 2022?
Digital banks are gaining popularity across South Africa as customers choose flexibility. Internet and mobile banking ensure 24/7 access to financial services, although not all banks offer the expected customer satisfaction. Find out which digital banks in South Africa are rated highly.
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South Africa has seen an increase in the establishment of fully digital banks, including Spot Money and TymBank. Traditional financial services providers like FNB, Capitec, Absa, and Standard are also making major innovations in the digital banking field.
Which bank is fully digital?
South Africa has several fully digital banks, and their clients can access their services online via phones, tablets, or PCs. The top 5 best neobanks revolutionizing the country's banking system include;
TymeBank
Source: UGC
Is TymeBank a digital bank? TymeBank is a digital financial services provider based in Johannesburg, South Africa. The bank was established in 2015 but started to operate exclusively online in 2017. TymeBank has a partnership with Pick n Pay and Boxer retailers, and TymeBank kiosks are found in the retailers' stores.
TymeBank customers earn Pick n Pay Smart Shopper points everywhere they shop and double points when they shop in Pick n Pay. It is free to send money between TymeBank online banking users, and customers are charged R7 to send money to any South African number. The service provider's savings accounts earn up to 8% interest annually.
Spot Money
Source: UGC
Spot Money is a South African mobile banking provider. The Cape Town-based service provider was founded in 2006 as Viirgin Money. The company launched the Spot app in 2018. The application is operated in partnership with Bidvest Bank.
There is no monthly fee for the digital accounts, and customers can access a free Mastercard, which is ordered via the Spot app. The online services provider offers loans and insurance products to its clients, and interest rates are based on one's credit score. There are free instant money transfers between Spot users, and you can scan any QR code to make payments.
Sol Wallet
Sol Wallet offers online financial services with 24/7 access, and its card is both virtual and physical. Customers have to pay an R25 fee per month and R9.99 per card load fee. It is free to make transfers between Sol Wallet users and when swiping at any South African store or making EFT deposits to SOL accounts. The company does not have any other hidden fees.
Bettr
Bettr Finance is a Fintech company founded in 2015 by CEO Tobie van Zyl, Angus Brown, and Andrzej Stempowski. The Cape Town-based digital bank targets millennials and generation Z customers. Bettr allows its users to sign up via WhatsApp and has zero monthly fees. The financial services provider offers financial guidance powered by Ai Rewards.
Bank Zero
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Bank Zero was launched in 2021 as a mutual digital-only bank. It offers financial services to individuals and businesses via a smartphone application. Individual accounts have unique features, including patented cards and email chats that prevent skimming. Bank Zero's business accounts are designed with built-in accounting software integration. The financial services provider offers zero to low fees on their products.
Which digital bank is best?
A survey by InSites Consulting South Africa reveals which digital banks are preferred by customers in 2022. The ranking looks at a company's internet and mobile banking and gives scores from –100 to 100. The list includes neobanks and traditional banks with digital products.
Capitec - 80 points
Capitec is the top-rated digital services provider in South Africa in 2022. It was also number one in the 2021 survey. The company clinched the top spot in the mobile banking category and the second spot in the internet banking category behind FNB. The Capitec Remote Banking app allows customers to access financial services anywhere, including making payments, transferring credit, blocking stolen or lost cards, and making insurance applications.
Source: Getty Images
FNB - 78 points
Is FNB a digital bank? The First National Bank has moved into the digital banking industry but still offers traditional banking services. The FirstRand Group subsidiary has maintained the second spot since 2021 behind Capitec in digital banking performance. The company is preferred for its innovative features and ranked first in 2022's internet banking category.
Nedbank - 73 points
Nedbank is one of the best banks in SA and ranks third in 2022's InSites ranking with 73 points. The company improved its internet banking score from 63 points in 2021 to 69 points in 2022. Customers rated it highly because of the platform's reliability and improved communication. Nedbank also saw its mobile banking performance improve from 76 points in 2021 to 77 points in 2022 due to its constant innovation.
Standard Bank - 70 points
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Standard Bank is the fourth-most preferred digital financial services provider in 2022, with 70 points. Customers prefer the company for its excellent online customer service and user-friendly interface. The financial services provider ranks second with 78.9 points in the mobile banking category ahead of FNB, which has 78.4 points in 2022.
Standard Bank's MyMo account gives customers access to online shopping using a Virtual Card and exclusive access to deals from over 80 retailers in South Africa through Varsity Vibe. You will only need to pay R4.95 per month for the MyMo account. The company also introduced the Standard Bank Mobile SIM, where customers' banking fees are transferred to airtime and data, and they only pay R5 per month.
TymeBank - 65 points
TymeBank offers one of the best internet banking services and was ranked third with 75 points, just two points behind the industry leader FNB who had 77 points. TymeBank is a fully digital financial services provider operating in partnership with Pick n Pay and Boxer.
Absa - 64 points
Source: UGC
Absa has shown consistent performance over the last five years. The banking giant won the best digital bank in South Africa award during the 2022 Middle East & Africa Retail Banking Innovation Awards. Customers can access their services via the Absa App or online banking using their laptops or desktop. Customers without smart devices can also access services via USSD. Absa's digital banking security is enhanced by its Two Factor Authentication and high-level encryption.
Which bank has no monthly fees in South Africa?
Several financial services providers in South Africa have no monthly fees. They include;
- FNB
- Nedbank
- Spot Money
- TymeBank
- Bank Zero
Online banking has completely changed the way South Africans access financial services. Digital banks in South Africa have taken various measures to ensure their customers' online security when making transactions, including OTP and Two Factor Authentication features.
READ ALSO: List of STD Bank branch codes in 2022: All universal codes for Standard Bank
Briefly.co.za highlighted all the Standard Bank branch codes. The South African-based financial service provider is one the largest banking institutions in the country, with branches spread across Africa and overseas.
Branch codes help identify a specific bank branch when making transactions. In the absence of a branch code, a universal code can be used to make electronic fund transfers.
Source: Briefly News
