Internet banking transactionsup 34.9%, says RBM
A National Payment System (NPS) monthly report for August 2015 has shown that Malawi’s Internet banking transactions have increased thanks to positive response by customers to special promotional campaigns by some banks.
The report by Reserve Bank of Malawi (RBM) reveals that daily average volume of transactions increased by 34.9 percent to 1 740 transactions in July 2015 from 1 290 the month before.
This surge pushed Internet subscriber base by 3.9 percent and the value of transactions by 79.3 percent to K26.1 billion in the month under review, according to the report.
The report further indicates that total volume of retail transactions processed through Internet banking increased by 17 percent to 15 558 transactions in July 2015 from 13 265 transactions in the preceding month on account of retail funds transfers which increased by 42.4 percent to 10 1106 transactions in July 2015 from 7 103 transactions in June 2015.
According to the central bank, the corresponding total retail transaction value also increased by 130 percent to K9.7 billion from K4.2 billion the month before, with funds transfers surging by 157 percent to K8.8 billion from K3.4 billion.
On the other hand, the volume of utility bill payments through Internet banking dropped by 16.4 percent to 4 051 transaction in July 2015 from 4 851 transactions the month before while the value increased slightly by 5.5 percent to K694 million from K658 million.
The total number of subscribers, transaction volumes and values declined in the review period by 18.2 percent, 17.7 percent and 5.5 percent to 453 863 subscribers, 1.3 million transactions and K5.4 billion from 554 626 subscribers, 1.6 million transaction and K5.7 billion respectively.
“The decline in bank-led mobile banking could reflect growing customer preference for Internet banking, following special promotional campaigns by some banks aimed at increasing uptake and usage of the service,” said the report.
However, the report said average value per transaction increased to around K4.2 billion in July from K3.6 billion in June.
