CAPE TOWN – Innovation in banking is driving up transaction activity, according to the BankservAfrica Economic Transaction Index (BETI) for January 2020.
The BETI in January reached 123.4 and grew by 3.7 percent in real, annual terms. Growth from the last quarter was 2.6 percent after a 2.3 percent quarterly growth in December. The monthly change, however, was 0.4 percent in real terms.
Head of stakeholder engagements at BankservAfrica Shergeran Naidoo said rapid transformations in banking in South Africa were benefitting customers who were at the receiving end of the improved experience and lower fees. “This is evident in the current data that shows a pick up in transaction activity.”
Chief economist at economists.co.za Mike Schüssler said at first glance, the data did not sync with the economic reality.
He said on an annual basis, it could also reflect the low base of the first quarter in 2019 when the BETI reached a two-year low. However, on closer inspection, it is telling of the interbank activity that has created some disruption in the world of transactions.