FNB has revealed that South African consumers are showing strong appetite to save after its customers initiated nearly 20 000 savings goals in just a few days since the launch of the Savings Goals feature on the Bank’s App.
To date, some of the top Savings Goals that have been chosen by consumers include: saving for a car, travel, home improvements, emergencies and education.
The Savings Goals feature is a continuation of FNB’s journey to help customers navigate life which began in 2016 when FNB introduced nav» Home, followed by nav» Car and more recently, nav» Money. The Bank has enhanced the nav» Money feature to enable customers to set up and track Savings Goals.
“The need to save cannot be ignored,” says Himal Parbhoo, CEO of FNB Retail Cash Investments. “We are offering customers help to minimise reliance on debt by saving more. More importantly, we are walking the savings journey with customers by enabling them to use the right savings product to reach their goal. Customers have the option of selecting up to 10 main Savings Goals categories, including: education, emergencies, travel, saving to start a business and health and wellness; with over 50 different sub categories.”
Doret Jooste, CEO of FNB’s Money Management unit says, “Empowering customers with convenient and efficient tools that helps them to set up and track their savings will go a long way in helping clients achieve their goals, whilst also reducing the reliance on debt to do the things they really want.”
“Over the last year, our stats showed that more than half of middle income consumers spend their income in less than five days after receiving it. If you’re not intentionally saving for something special, chances are that money will be spent. These customers are also heavily reliant on debt with some using as much as 25% of their income monthly income to pay interest on debt. This further limit families’ capacity to save,” says Jooste.
FNB says in line with its goal based philosophy, the Bank is also empowering customers through its Wealth and Investments offering which focuses on long-term investment solutions in various asset classes. Core to this is the focus on enabling customers with robo tools and advice from its experts. The Bank is committed to be a trusted partner in helping customers and their families.
Conversations around the low South African savings culture have intensified this Savings Month with emphasis placed on encouraging consumers to save more and spend less. Whilst disposable income continues to place pressure on households, consumers are increasingly urged to save for a rainy day and a better financial future.