As a testament to the resilience and dedication of South African stokvel savers, FNB revealed that its customers’ stokvel net deposits have increased by 42%. Since November 2019, FNB stokvel customers have continually increased saving via a stokvel surpassing the R8.3 billion mark in total member contributions. The growth is a potent indication of the Stokvel members’ financial tenacity in the face of a challenging economic climate.
“Stokvels remain among the most popular savings options among many of our customers who earn entry-level to middle income,” says Lytania Johnson, CEO of FNB’s Personal Segment. “While the make-up of stokvels continue to evolve, the principles of trust, community and mutual benefit remain the glue in the management and growth of stokvels. Over the years, we’ve digitized our stokvel offering to minimize the risks associated with carrying large sums of cash in contributions or cash withdrawals, and this helps FNB-banked stokvels to easily manage their money without any hassles.”
Sifiso Nkosi, Product Growth Head at FNB Retail Cash Investments, says, “The surge in Stokvel savings comes against the backdrop of a high interest rate environment, highlighting the importance of financial discipline among those who use Stokvels to accumulate savings for their goals. It’s also important to acknowledge that Stokvels have a profound significance beyond promoting a savings culture, as they facilitate economic participation for individuals and families. In addition, people who save through Stokvels generally have very clear savings goals, whether it is to save for home-related expenses, large purchases, or even school fees. As we approach the festive season period, we also urge members of Stokvels to avoid exhausting their savings so they can generate even better returns in the future.”
To help Stokvels better manage their administration, deposits, and fund distribution using its award-winning digital channels, FNB introduced a digital Stokvel account with no monthly account fees in 2020. Stokvels begin receiving interest on the account from just one Rand. By using the account, Stokvels can purchase funeral insurance for their members and enjoy discounts on the premiums based on how many members of the Stokvel contribute. If a contributing Stokvel member passes away due to accidental death, the funeral cover pays out twice as much.
Additional features of the Stokvel account include the ability to check account balances and transactions, add and update members, make safer payments, and make secure payouts with authorisation. Members of Stokvels also have the option of using a FNB eWallet, where they can withdraw cash without paying fees, or a bank account. Members can also get cash via Cash@Till at Checkers, Shoprite, Pick n Pay, Boxer, some SPAR, and Usave tills at no additional cost if they receive a payout into their own FNB bank account.