FNB CEO Michael Jordaan describes it as "a significant milestone in taking banking to the previously unbanked. The opening confirms our commitment to ensuring that banking is accessible to all and ensures we have a growing presence in the mainstream market. "
The bank's low-cost paperless banking model already has more than 105 000 customers, showing year-on-year growth of 770% for the period June 2010 - May 2011. This is supported by the fact that the branches have collectively increased the loan payout from an average of R10m per month (June 2010) to about R90m per month (May 2011).
"The bank has a long history of catering to the under-banked and the previously unbanked, going back to the days of Bobsave. We have come a long way since then and, going forward, we intend to accelerate our presence in rural areas, not only because of the increasing demand for services, but because of our commitment to directly addressing the needs of our customers.
"We have consistently grown our customer base and our book through the innovative use of technology and the development and introduction of new products," adds Jordaan.
"The scale of customer take-up shows we are succeeding in offering real value-for-money banking. The system makes banking simple, accessible and affordable to lower-income earners."
Through EasyPlan, the bank is able to offer loans from as little as R250, opening its doors to consumers who never qualified for formal credit and enabling them to start building their credit profiles so that they can qualify for bigger credit in the future.
FNB EasyPlan CEO, Gift Manyanga, says the bank's pricing structure has been a key driver of the product's growth. "For three years running, we have pegged the monthly banking fee for this service at R3.95. Advanced technology, such as real time cash-deposit ATMs, cellphone banking and eWallet enables us to offer our customers quality banking at affordable rates," he says.
In addition, its customers can use their cards free when they make purchases at tills. "It is crucial that we encourage a culture of not carrying cash, as carrying cash can be expensive, especially in our market. We contribute to this by eliminating fees on point-of-sale purchases, ensuring that customers are able to avoid carrying cash," Manyanga concludes.
