Stokvel customers are making remarkable progress in their saving efforts. Since November 2019, FNB stokvel customers have significantly increased their savings, surpassing the R8.3 billion mark in total member contributions.
FNB revealed that its customers’ stokvel net deposits have increased by 42%, indicating the resilience and dedication of South African stokvel savers. The growth is a prolific indicator that Stokvel members’ financial tenacity in the face of a challenging economic climate.
FNB has also opted for digitizing its stokvel offerings to minimize the risks of having to carry large sums of cash. Digitizing the service will also help Stokvels better manage their administration, deposits. By introducing a digital Stokvel account with no monthly account fees in 2020, Stokvels can now generate interest on the account from as little as R1,00. Through the use of the account, Stokvels can purchase funeral insurance for their members and enjoy discounts on the premiums based on how many members of the Stokvel contribute.
Lytania Johnson, CEO of FNB’s Personal Segment stated, “Stokvels remain among the most popular savings options among many of our customers who earn entry-level to middle income,” adding, “We’ve digitized our stokvel offering to minimize the risks associated with carrying large sums of cash in contributions or cash withdrawals, and this helps FNB-banked stokvels to easily manage their money without any hassles.”
However, according to Sifiso Nkosi, Product Growth Heat at FNB Retail Cash Investment the surge in Stokvel savings is offset by the high interest rate environment – which further reiterates the importance of focusing on developing financial discipline among those who use Stokvels.
Beyond promoting a savings culture, Stokvels facilitate economic participation for individuals and families and provides communities with a means of reaching their savings goals.
By using the account, Stokvels can purchase funeral insurance for their members and enjoy discounts on the premiums based on how many members of the Stokvel contribute. If a contributing Stokvel member passes away due to accidental death, the funeral cover pays out twice as much. Additional features include, an account balance and transaction checker, the ability to update members, make safer payments and make secure payouts.
Members will also have access the no-fee FNB eWallet, with the option to withdraw cash from ATM’s or Cash@Till at Checkers, Shoprite, Pick n Pay, Boxer, SPAR, and Usave tills at no additional cost.
Stokvels are an economic enabler in close-knit communities and allow savers to meet larger financial obligations that they would otherwise not be able to meet, with FNB’s decision to digitize the service – savers will now have more control over their finances increasing their chances of meeting even higher goals than before.
