1. The Impact of the Internet and Mobile Banking on the South African Banking Industry Presented by: SYNDICATE 1 FUNCOM 0 Lesego Koapeng 0 Bongane Zwane 0 Nyambeni Nefale 0 Taryn Thorpe 0 Dieketseng Meletse 0 Katja Janicke 13 March 2013

2. Agenda What is Mobile Banking Mobile Banking Timeline Developments in the Telecoms space Factors Influencing Mobile Banking The Growth of Mobile Banking in South Africa Benefits of Mobile Banking Key Challenges in Mobile Banking 13/03/2013Funcom Syndicate 2

3. Mobile Banking Usage of a mobile device to perform online banking tasks Mobile banking has been on the increase Mobile devices are well positioned for making payments 13/03/2013Funcom Syndicate 3

4. Timeline 13/03/2013Funcom Syndicate 4 e 1996 ABSA launches first online banking services 2000 ABSA introduces mobile banking 2008 ABSA launches cash send 2012 The other banks followed suit 2011 FNB offers the first mobile banking application 2009 FNB launches e-wallet 2010 Vodacom and Nedbank launch M-pesa

5. Developments in the Telecoms Space New Technology-Based Services in South Africa Mobile Banking increases people’s access to finance 13/03/2013Funcom Syndicate 5 Source: MOBILE BANKING USE BY MOBILE DEVICE USERS (World Wide Worx Feb 2011)

6. Increasing Popularity of Mobility in SA Increase in the ownership of mobile phones in South Africa In 2011: 39% of urban and 27% of rural users were browsing the internet on their mobile devices Mobile internet offers a cheaper alternative to stationary internet 13/03/2013Funcom Syndicate 6

7. Benefits of Mobile Banking Retaining bank customers Increased market share – reaching the unbanked Reducing costs and improving bank efficiency Improved product and services 13/03/2013Funcom Syndicate 7

8. Key Challenges in Mobile Banking Security Customer relationship Competition and partnership Market share 13/03/2013Funcom Syndicate 8

9. Conclusion Banks stand to benefit significantly from: Cost savings, Customer growth More spending from the user community that will increase the profit margins. 13/03/2013Funcom Syndicate 9

10. 13/03/2013Funcom Syndicate 10 “I saw a bank that said 24hour banking but I don’t have that much time” Steven Wright “There is a way of transferring funds that is even faster than electronic banking… It’s called marriage” unknown Quotes