Fancy the idea of being able to do your banking via your cellphone but you don't have the high priced new generation WAP cellular phone? There is another, cheaper option that works with any cellular phone.
Absa and MTN have launched cellphone banking in South Africa based on SIM cards and SMS messaging.
Santie Botha, the executive director of Absa Group, says Absa cellphone banking is a cost-effective mobile alternative to telephone or internet banking and allows you to conduct your day-to-day banking transactions wherever you are.
Another advantage is that you do not need to be near a landline or a computer. Although the concept of mobile banking is already a reality on a WAP (wireless application protocol) format, this technology is limited to expensive, new generation cellphone models.
WAP is also expensive in terms of call costs because it requires you to go on-line at cellular rate to do your banking. The new Absa service uses SMS rather than on-line cellular rates as the medium for accessing information.
The cost of sending an SMS message is considerably cheaper than the unit cost of a call.
How it works
To make use of Absa cellphone banking, you need to buy a 32k SIM card from any MTN cellphone retail outlet or service provider. A SIM card is the card that you insert into your phone to activate it and on which your account details and phone number are stored.
The shop assistant will transfer all existing information from your old SIM card to the new one without changing your phone number. Once the SIM card has been put into the phone, a menu option will prompt you to download the Absa banking menu which will list the options available.
After this, a simple step-by-step procedure will register you for the service. To use the banking service, you have to type in your access account number and secret personal identification number.
You will be able to do a wide range of banking transactions over the phone excluding drawing or depositing money. Transactions available to you include live balance and statement inquiries, transfers between accounts, payments, cancelling services and changing your PIN numbers
.
Bruce Cockburn, the general manager of products and innovations at MTN, says the service is totally secure as it uses specially developed encryption technology.
The service is not available to businesses and pre-paid cellphone users.
COSTS
The cost of using SMS banking include a once-off R100 for a new SIM card and a monthly R11, which is charged by Absa.
For the next three months, Absa account-holders using this service will not pay for SMS messaging. The rates after that are being reviewed. Bank transaction charges for the SMS service for the next three months will also be free. After that the costs will probably be similar to internet bank charges.
For further information visit the Absa website at www.absa.co.zaor the MTN website on www.mtn.co.za. You can also contact Absa on 0860 111123 or MTN on 173 from your cellphone. At present the banking service is available exclusively to MTN subscribers.