Nedbank to integrate Go Banking

Its core offering is a current account called the Go Account and the Go Credit Card, with Go Banking customers benefiting from discounts at Pick n Pay stores. The business has used a ‘direct' model in which customers have interacted with Go Banking primarily through the internet, contact centre and by using Pick n Pay points of sale to transact.

Nedbank Group CEO Tom Boardman said: “Go Banking has been an innovative business which has consistently offered the most competitive banking products in South Africa. While Go Banking has always been competitively priced and offered numerous benefits to its customers, it has been unable to grow its active client base of about 90,000 customers to a sustainable level, as a separate business. We believe that it is now time to integrate Go Banking into Nedbank.”

Additional benefits

Existing customers of Go Banking will continue to enjoy the same features and benefits to which they are accustomed, including competitive rates, fees, money back discounts and till point functionality at Pick n Pay. They will now also be offered additional products from Nedbank through 430 branches and other distribution channels. While Go Banking products will no longer be sold, similar products are being developed to be incorporated into Nedbank's core offering and these will be made available across all of Nedbank's sales and service channels. Development is also underway to allow all Nedbank clients to benefit from the additional till point functionality at Pick n Pay, previously exclusive to Go Banking customers.

The Go Banking team of 170 people has developed a unique skill set that Nedbank will leverage and integrate where possible. Boardman said: “Nedbank is acutely aware that job losses in these difficult economic times are to be avoided. We will absorb all Go Banking employees into vacancies in the rest of our business.” The integration costs to Nedbank are expected to be insignificant.

Pick n Pay CEO Nick Badminton said: “Nedbank and Pick n Pay enjoy a strong relationship and continue to focus on opportunities such as the roll-out of Nedbank outlets inside Pick n Pay, Score and Boxer stores. Importantly, this integration will mean that our existing Go Banking customers retain all their benefits and some of the most competitively priced banking products available in South Africa.”

Outlet expansion

At the end of July 2008, there were 31 Nedbank outlets in the retailer's premises, with plans to increase this to 42 by the end of 2008. These have been successful in attracting new clients to Nedbank, as well as increasing foot flow into Pick n Pay's stores.

The integration is expected to be completed before the end of the year, during which time a comprehensive client communication strategy will be implemented.