Banker Boy

As part of its unique business approach to make retail banking simpler and more accessible for its clients, South Africa’s youngest retail bank, Capitec Bank, this week announced a first for its industry: permanent Sunday trading. Launched at 84 of its 460 branches located in or around shopping centres on Sunday 7 May, 2011, the bank has aligned its trading hours to those such as FMCG retailers and restaurants to give clients increased flexibility to do their banking. This follows its successful roll out of longer banking hours at its inception.

Carl Fischer, marketing and corporate affairs executive said: “Capitec Bank has a single-minded approach to banking: it is based on the retail model and challenges the traditional banking experience. By opening our branches on Sundays, we will not only enable clients to do their personal banking when it suits them, but also further align ourselves to other retailers’ opening hours. It will also help to reduce in-branch pressure experienced over month end peak days.”

Read the rest of this entry »

South Africa’s youngest retail bank, Capitec Bank, this week announced plans to further simplify its unrivalled retail banking offering by making it more transparent, easy to understand and consumer-friendly. This comes in the wake of Finance Minister Pravin Gordhan’s recent call for “absolute transparency in banking institutions” as well as his announcement during the National Budget Speech that bank fees be capped.
 
Carl Fischer, Executive: Marketing and Corporate Affairs, Capitec Bank says, “We understand consumers are frustrated by red tape, unexplained conditions and banking jargon as it prevents them from staying in control of their own money. As such, we are striving to improve our simplified service to ensure all communication, fee structures and pricing is easy to understand, in plain language and is accessible.”
 
Fischer says this has led to the bank tackling a common grudge among consumers – terms and conditions – head on in its new advertising campaign. He says, “It’s one thing for the big print to sell the product and all its perks, but it’s quite another for the small print to place extensive restrictions or clauses on it. This approach has been the ‘norm’ for years but consumers are now savvier and know that a * means there are strings attached.”

Read the rest of this entry »

The 2011 Euromoney Private Banking Survey has ranked FNB Wealth as the Best Private Banking Services provider overall in South Africa and Best Private Banking Services Overall in Africa.
 
FNB Wealth services the unique needs of high net worth customers through a portfolio of private banking brands, namely FNB Private Clients and RMB Private Bank.
 
Iris Dempsey, CEO of FNB Wealth, says, “We are very proud that our private banking services have been recognised by the industry. This award stands testament to our continued commitment to the collaborative relationships we build with our customers in order to provide them with sound financial advice, innovative banking products and carefully considered wealth management solutions for every stage of their wealth development.”
 
The annual Euromoney Private Banking Survey provides a qualitative and quantitative review of the best services in private banking, by region and by areas of service. The Survey covers both global and regional categories and includes over 65 countries, as well as the vast array of services that wealth management provides. Factors such as assets under management, profitability and services offered, among other things, are all considered when ranking the top private banks.
 
“With our asset management specialist, Ashburton, recently winning their third consecutive Raging Bull award, along with this Euromoney Private Banking award, we are well placed to take full advantage of FirstRand’s expansion plans into Africa and India. However, none of this would have been possible without the continued dedication of our people and the support of our clients,” concludes Dempsey.

First National Bank, the banking division of leading financial services group, FirstRand Limited, has been appointed by South Africa’s largest economic hub, the Gauteng Provincial Government as its main banker for a period of five years commencing from April 1, 2011.

Sizwe Nxasana; FirstRand Limited Group Chief Executive, says; “We are extremely excited to have been chosen as the banking partner to such an important province in the economy of the country. We view this appointment as a further opportunity to enhance our partnership and build enduring relationships with the Gauteng Provincial Government.”
Nxasana said that FNB Public Sector Banking is at the core of the Group’s strategy and as such this relationship will provide FNB with the platform to offer innovative financial solutions that will support the developmental programmes of the Gauteng Provincial Government.

“The bank has a solid track record in partnering with the public sector, we are the main banker to four of the country’s nine provinces and we bank around 50% of the country’s 283 municipalities. Through this experience, FNB looks forward to supporting the Gauteng Provincial Government in achieving the set priorities that will improve the lives of the people of the Province;” says Nxasana.

Wow – one must really feel for the top brass at Standard Bank. A few weeks back they announced that job cuts were on the cards and then on Thursday it was confirmed that about 1500 SA workers plus another 600 contractors were being chopped.

This image has been doing the rounds on Friday depicting the CEO of Standard Bank Jacko Maree as “The Terminator” – good for a laugh:

In May 2010 First National Bank’s (FNB) eWallet solution began processing transactions worth R1 million a day making great strides into the ‘virtual money’ environment.

With the advent of technology, especially Cellphone technology banking has evolved dramatically. Banks and Network Operators have created solutions to address the unbanked population. The FNB eWallet solution specifically, has seen a remarkable up-take in a very short period, predominantly because it speaks to people’s needs to replace cash easily and safely.  Since its inception in October 2009 more than 150,000 eWallets have been created with over R 100,000,000 been sent to friends and family from FNB accounts.

The eWallet solution is a success because it has given customers an alternative to sending cash instantly and securely to family and friends without having to pay exorbitant bank fees or transport costs.

“The recipient does not have to be an FNB customer to receive the cash sent to them and they do not require a debit card to withdraw the cash at an FNB ATM. The recipient also has a choice to either withdraw cash or make use of various electronic transaction options, including purchasing prepaid products such as airtime or sending money to someone else,” says FNB Smart Services CEO Yolande Van Wyk.

Since its inception the eWallet from FNB has seen a phenomenal growth. “This growth is accredited to our customers who reside in urban areas who are sending money back home to rural areas, which indicates its ease of use and safety,” she adds.

The success of using this technology to send someone cash instantly has enabled FNB to evolve this solution and develop a similar solution that enables employers to pay their un-banked employees’ funds into a cellphone.
Van Wyk says Pay Wallet is yet another innovative solution from FNB that aims to ensure that all South Africans are active participants in the growth of our economy. “It affords those with no access to banking services to be paid electronically without the need of a bank account.”

Cellphone banking offers everyone access, is not bound by physical infrastructure, income brackets and is available 24 hours a day. It dramatically reduces the costs of transactions as the negation of bricks and mortar services reduces the total cost of service provision; a cost saving that is then translated back into a benefit for the customer.
“Virtual banking and virtual money is gaining momentum in our country and at FNB we are always looking at other alternatives to provide convenience and affordability to our customers,” Van Wyk concludes.

Cellphone banking is increasingly proving to be the ideal way to do banking in Africa and this is evident in the growth that FNB Cellphone Banking is seeing in the African countries where it has introduced this facility.

Ravesh Ramlakan, CEO FNB Cellphone Banking Solutions says: “Cellphone banking offers an inexpensive and convenient method for the previously unbanked to have access to banking services traditionally reserved for a privileged few.  The African continent, by pure virtue of the fact that its infrastructure is still catching up with first world countries, is an ideal market for cellphone banking centric services and it is with this that we coupled cellphone banking services into our African expansion portfolio.”

Read the rest of this entry »

With the number of internet users now banking online on the increase, criminals are increasing their efforts to target consumers via the internet in order to steal their identity and commit online fraud.  As part of the bank’s commitment to protect clients from fraudsters and assisting them in practising safer online banking, Nedbank will introduce ‘Rapport’, a new piece of free software from Trusteer, the leading provider of secure browsing services.

Read the rest of this entry »

Capitec Bank’s simplified single solution to money management has found great appeal with the cost-conscious consumer looking for good value, easy to use banking products. Particularly in the light of the recent recession and relatively slow economic recovery, its appeal has grown across all income groups.

At its Annual General Meeting (AGM) in Stellenbosch today, the bank attributed its sustained success largely to client growth. The bank has been acquiring about 70 000 new clients every month, since September 2009, increasing its active client base to over 2.1million clients – a growth of 37% in numbers year-on-year.

“The world as we know it is evolving and how we do businesses continuously changes. As the only South African brand, and one of only 27 global brands, to be named a ‘Great Brand of Tomorrow’ by Credit-Suisse, Capitec Bank is staying ahead of the retail banking curve by remaining flexible to market trends. Based on innovative technology that affords greater simplicity and value, our solution is underpinned by a unique product offer and service experience. The approach of being adaptable, scalable and implementing systems that are efficient and controlled, has put us in good to stead to handle significant growth comfortably,” CEO, Riaan Stassen commented at the AGM.
Read the rest of this entry »

It will be interesting to see how the other banks respond to this challenge….

In a first for the local banking industry, Capitec Bank – the only South African brand to be included in the Credit Suisse 27 Great Brands of Tomorrow report – announced today that for the next three months as of May 1, 2010, all cash withdrawals from participating retailers will be free. This bold initiative is part of the bank’s commitment to foster a change in South Africans’ banking behaviour by offering clients more convenient and free access to their money.

Carl Fischer, Capitec Bank’s Executive: Marketing and Corporate Affairs, says: “Against the backdrop of the recession, consumers have been under pressure to lower personal and household expenses. Our solution is therefore two-fold: Firstly, partner with well-known retailers, such as Pick n Pay and Shoprite Checkers that have a widespread national footprint as this will offer greater access to clients. Secondly, encourage them to draw cash from these retailers by offering free withdrawals for the months of May, June and July. This three-month campaign is one of our initiatives to encourage clients to change their banking behaviour and view till points as the new ATMs thereby cutting the costs of accessing their money.”

Drawing cash at till points is not only less costly, but is also safer, as ATMs are a common target for fraudsters, card skimmers and muggers.

Capitec Bank, with its low-cost model based on technology, is no newcomer to affordable banking: Its Global One facility, a single solution to daily money management, offers clients free balance enquiries and debit card purchases. In addition, the bank offers among the most competitive banking fees for transactions, cash deposits and withdrawals in the country.

Fischer suggests that South Africans can do more to reduce bank costs and be more in control of their bank balances. “It’s common knowledge that using other banks’ ATMs costs a lot more than using your own.” But, he said that few South Africans have fully grasped the cost-saving benefits of withdrawing cash from their preferred retailers’ tills as  “it is not only safer, it also saves time and money”.

And it is not just the consumer who saves. Retailers partnering this offer do so too.

Fischer explains, “The high costs of security and handling cash, are additional drivers behind this initiative. The collaborations with retailers, which allows them to channel their cash overflows back to the consumer without facing the high cash-deposit fees when doing daily cash-ups, is a win-win situation.”

Participating retailers include Pick n Pay, Checkers, Shoprite, Pep Stores, Boxer and selected Spar stores. To access their money, clients can withdrawal cash for free when making a purchase, except at Pick n Pick where a purchase is not required to make a cash withdrawal.

“Up until now clients have enjoyed unlimited cash withdrawals at our retail partners for as little as R1. Now, with the ‘free’ three-month promotion in place, we hope to encourage more South Africans to make use of this service and enjoy the saving benefits both now and in the long-term,” concludes Fischer.

For more information on the ‘free withdrawal’ promotion or Capitec Bank visit www.capitecbank.co.za.