FNB data indicates that many households in flood-affected areas in the Garden Route are being forced to tap into their savings to manage immediate financial needs, underscoring mounting financial pressure and the difficult trade-off between long-term financial security and short-term survival.
The analysis, covering the period 1 April to 31 May (61 days) for each year from 2023 to 2026, tracks post-disaster financial patterns, highlighting that while overall customer outflows remained broadly stable in previous years, there has been a clear shift in spending behaviour in 2026.
Customers are increasingly reallocating funds away from savings and investment products towards immediate financial needs, including transfers, debt servicing and essential cash management activities.
While this reflects the immediate realities households face during a disaster event, it also reinforces the importance of maintaining a savings buffer where possible. Even small, consistent saving habits can play a critical role in helping households navigate unexpected events and recover more quickly over time.
One of the clearest indicators of financial pressure is a decline in savings activity. Short-term savings balances declined by 9% during the observation period, representing the largest reduction in absolute value across the categories analysed. This suggests that many customers may be drawing on savings or reducing contributions in order to maintain liquidity and manage immediate financial obligations.
“What we’re seeing in the data is a shift in how customers are prioritising their finances in response to disruption,” says Ilse Smuts, Business Development Head at FNB Cash Investment. “There is a noticeable move away from longer-term savings and investment behaviour towards immediate liquidity needs. Customers are drawing on savings, increasing transfer activity, and prioritising access to cash as they navigate the financial impact of the floods and focus on meeting short-term obligations.”
The data further indicates rising demand for recovery-related and administrative services, with legal services increasing by 82% during the observation period, the largest percentage increase recorded across the categories analysed. This may reflect higher levels of insurance claims activity, legal administration, property repairs, contractor payments and dispute-related costs following the severe weather events. At the same time, electronic payments declined by 21%, the largest reduction observed, while other transfer transactions increased by 24%, suggesting a shift towards instant payments and transfers as customers actively manage household cash flow and financial obligations.
Taken together, these trends point to the broader financial impact of extreme weather events, not only on household finances in the short term, but also on long-term financial resilience. The decline in savings highlights the risk of prolonged financial vulnerability as customers rebuild in the aftermath of disruption.
“While it is encouraging to see customers adapting and making use of available tools to manage their finances, the decline in savings highlights the longer-term impact on financial resilience,” adds Smuts. “Supporting customers through recovery is not only about access to funds in the short term, but also about helping them rebuild savings, strengthen financial discipline, and plan for future shocks. As extreme weather events become more frequent, accessible digital banking solutions and financial education will play an increasingly important role in supporting communities.”
Against this backdrop, cash-based investment solutions can play an important role during times of financial strain, offering customers a combination of capital preservation and relatively quick access to funds when needed. In periods of disruption, the ability to draw on savings without significant penalties or delays can help households manage immediate expenses while maintaining a degree of financial stability. This highlights the broader value of accessible, flexible savings mechanisms in supporting both short-term recovery and longer-term resilience.
The findings reinforce the importance of accessible, flexible financial tools in helping customers navigate periods of disruption. While immediate recovery remains the priority for many households, rebuilding savings and strengthening long-term financial resilience will be critical as environmental and economic pressures continue to evolve. Encouraging and supporting customers to return to saving even incrementally will play a key role in improving resilience against future shocks.
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