140k more customers qualify for eBucks & monthly account fee increases on non-Fusion are sub-inflation
As part of its annual review, FNB has announced several changes to its account pricing and value propositions, effective in July and August 2023. These changes are in line with the Bank’s refined segment strategy, which services individual customers through its Personal and Private segments.
Lytania Johnson, FNB Personal Segment CEO, explains that “The changes are consistent with our efforts to meet the individual, family, and business needs of our customers by offering excellent value in all economic conditions. The current economic environment is characterised by high inflation and high interest rates. As a result, we are keeping some of our monthly account fees unchanged and limiting increases to below inflation. We are also delighted to announce a new customised solution for customers with ‘side hustles’ – a growing phenomenon in South Africa across all income brackets.”
Sizwe Nxedlana, FNB Private Segment CEO adds, “We have refined our rewards and are expanding the value that customers receive from value-added services such as eBucks, FNB Connect, and our nav» ecosystem on the FNB App. In addition, we continue to make it easy for customers to pay and get paid by reducing some interbank payment fees and offering them more payment options, largely free for low-value payments.”
Key highlights in FNB’s annual review of pricing and value propositions include:
A new ‘FNB Solopreneurs’ bundle account
In response to the growing trend of customers with ‘side hustles’, the Bank will introduce a new ‘FNB Solopreneurs’ value proposition that caters to the needs of customers who typically manage personal and business affairs using their personal bank account. Customers will not pay an additional monthly account fee, will have the same point of contact for all their needs, and will get the best of both worlds in eBucks benefits, with single login credentials to manage their money and to pay or get paid through FNB’s digital channels, such as the FNB App and Online. The value proposition complements other business or commercial accounts that FNB offers customers.
Account Pricing
FNB supports financial inclusion through FNB Easy Zero, where customers can bank for free as there are still no monthly account fees, cash withdrawals are free at Cash@Till®, prepaid purchases on all channels are free, and cash deposits are also free for up to R1 000 per month. In a tough economic environment, FNB is maintaining its current monthly account fees for Fusion Aspire (R99) and Fusion Premier (R230), which provide customers with additional rewards in reduced monthly fees, up to 30 days interest-free, and eBucks benefits. The Fusion solution also helps customers by providing them with a credit facility that is only charged when more than R200 is used, putting them in a better financial position when those unforeseen expenses arise. Non-Fusion accounts will see sub-inflationary increases in monthly account fees, giving customers some relief during this high inflation period.
Family Banking
A spouse receives a 50% reduction on monthly fees, and children do not pay monthly account fees in family banking. Over 210 000 families have taken up the offer, with around 20% of families freeing up cash flow by saving over R260 million in monthly account fees. Exclusive benefits include up to a 40% discount on selected flights booked through eBucks Travel, as well as Netflix and Spotify benefits.
Simpler and expanded eBucks Rewards benefits
The new eBucks earn rules will go into effect in August of this year, and the programme has been simplified to make it easier for more customers to qualify and progress through the levels. Approximately 140,000 additional customers (FNB Easy Smart and FNB Aspire account holders) will be eligible for eBucks Rewards, in addition to the about 3 million members who currently participate in the programme. Roughly 2 million FNB Easy PAYU customers have received grocery vouchers through the programme, and starting in August, the voucher amount per qualifying customer will increase from R15 to R20. Customers have been able to use eBucks to pay bank fees since 2021, and R92 million worth of eBucks have been used to pay account fees. Since its inception, eBucks has paid out over R19.2 billion and has an average earn-to-spend ratio of 95%, with most customers spending their eBucks within 30 days.
Affordable real time payment fees displace cash for micropayments
In recent months, FNB has expanded its market-leading payments ecosystem by introducing innovations such as Instant Payment, which uses a card number, and PayShap, which uses a ShapID or account number to perform a real-time inter-bank payment. Both solutions are designed to process transactions below R3000 and have no charge for transactions of R100 or less, which will assist with digitising low-value cash transactions. For high-value interbank payments, customers typically use ‘Pay and Clear Now,” and from July, FNB will reduce its fee for these transactions by 33% from R45 to R30 per transaction. The Bank’s customers will still enjoy free eWallet send money benefits for their qualifying accounts.
To help customers with their cash needs, FNB still offers free withdrawals via Cash@Till® at participating retailers, free withdrawals via ATM on bundle accounts, free cash deposits via ATM on bundle accounts, a 50% discount on cardless ATM withdrawals, discounted non-FNB ATMs on peak usage days (like when SASSA pays out), free EFT payments on bundle accounts, and free prepaid airtime via the FNB App and Online.
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