South Africa’s First National Bank (FNB) has seen a 59% surge in prepaid electricity sales.
FNB customers are able to purchase prepaid electricity via the bank's cellphone, internet and banking application offerings.
Customers purchasing electricity through FNB’s channels can recharge without leaving their home, and also have access to records of their purchases.
And in a statement, the bank noted that cellphone banking is the chief channel that the majority of customers use to purchase electricity at 51%, followed by online banking at 28% and the FNB app at 20%.
“Our electricity sales have seen a strong year-on-year growth of 59% as consumers become more cost conscious and want to control their bills more carefully through prepaid services, as well as the fact that we have expanded our network of municipalities,” said Ravesh Ramlakan, chief executive officer of FNB Service Provider.
Ramlakan added, "Interestingly, while customers are still predominantly using cellphone banking to purchase electricity, since 2010 customers have moved increasingly towards the use of online banking and, more recently, the FNB banking app as channels to purchase electricity.”
The bank stated that the average user spends in the region of R360 per month on electricity.
“Consumers are opting for prepaid as a way in which to control costs and prepaid also makes it easier for customers to keep track of their electricity spend,” said Ramlakan.
There are 4.7 million South African prepaid electricity customers according to electricity public utility Eskom.
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