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Press Office

Please direct all media queries to
fnbmedia@fnb.co.za


 

FNB reveals contactless payment solution at toll plazas on the N3 Toll Route

13 December 2023: FNB, in partnership with Visa and the N3 Toll Concession, introduces secure and convenient contactless card payments. Toll plazas will be equipped with new-age card acceptance devices to reduce time spent at booths and to combat fraud.

 

Helpful tips to protect your family wealth against fraudsters

09 January 2023: Product Head of Wills and Deceased Banking at FNB Fiduciary, Carin Meyer, highlights how families can protect their estates and inheritances against fraud this new year.

 

Pressure to hike interest rates remains

24 November 2022: Following the South African Reserve Bank's (SARB's) decision to increase its repo rate by 0.75%, FNB will raise its prime lending rate by 0.75%. As international trends indicate an uncertain outlook, it is even more critical for our country to stay the course in its monetary policy decisions.

 

Safety tips for Stokvels to keep fraudsters at bay this festive season

14 December 2022: It's important for Stokvel members who plan to withdraw or share their group savings to be aware that fraudsters are looking for ways to defraud them of their hard-earned money.

 

Over R1.8 billion in Stokvel contributions as members adopt digital platforms

14 November 2022: Stokvels urged to take advantage of rising interest rates. FNB reveals that Stokvel members who use its no monthly account fee digital account have contributed over R1.8 billion since the solution was launched in 2020.

 

FNB explores how World Savings Day can encourage healthy financial habits

30 October 2022: CEO of FNB Cash Investments, Himal Parbhoo touches on World Savings Day and South Africa's low savings culture. He also highlights the different ways we can activate the discipline of saving.

 

Should a stokvel be part of your savings and investment strategy?

13 October 2022: Stokvels are a genuine vehicle that many South Africans of all ages and income groups choose to help them save towards achieving a collective financial goal. Sifiso Nkosi, Stokvels and Group Savings Head at FNB Cash Investments, explains how stokvels fulfil some of the needs that individuals have, in order to support their wealth creation journey for their next generation.

 

FNB takes its promise of help to new levels

7 October 2022: FNB is reimagininghelp as it strives to make every day easier and tomorrow better for all its customers,taking a bold step forward on its journey into the future.

 

Physical Property can be a useful addition to your retirement plan - provided you understand the risks

06 October 2022: Given the uncertainty and volatility that has characterised investment markets in recent years, many people are looking for ways of supplementing the retirement savings.

 

FNB explores SARB's aggressive rate hikes, containing high inflation

22 September 2022: The South African Reserve Bank (SARB) has increased its repo rate by 0.75%. FNB CEO, Jacques Celliers and FNB Chief Economist, Mamello Matikinca-Ngwenya, explore this further.

 

FNB Multi Manager Equity Fund shines with five-star rating

21 September 2022: Head of Investments at FNB Wealth and Investments, Renzi Thirumalai shares his thoughts on the recent five-star rating from the highly respected global investment research provider, Morningstar.

 

The importance of having a Will as part of your blueprint and financial planning

14 September 2022: A Will should serve as a blueprint for your life and financial planning journey. FNB shares a few considerations when it comes to setting your estate plan and then ultimately how you draft your Will.

 

About the two-pot retirement saving system

04 September 2022: The two-pot system will see one third of the money you invest in your retirement fund being placed in an accessible savings pot, while the remaining two thirds will be held in a retirement pot, which you will not be able to access until you retire.

 

FNB enables Google Wallet to expand contactless payment convenience and choice for customers

23 August 2022: FNB and RMB Private Bank customers with Android-powered smartphones, tablets, or watches can now also use Google Wallet for safer and more secure contactless payments. Retail customers can now link their physical and virtual FNB debit, fusion, or credit cards to Google Wallet, while Commercial clients can link their physical and virtual debit cards.

 

Six steps to consider when building your investment portfolio

22 August 2022: Saving and investing early on in life gives you a greater chance of growing and protecting your wealth. Samukelo Zwane, Head of Product, FNB Wealth and Investments talks about how financial and investment education is key to unlocking sustainable returns into adulthood.

 

Springbok Women journey towards greatness with new FNB partnership

10 August 2022: CEO of SA Rugby, Jurie Roux, touches on the significance of the Springbok Women's new partnership with FNB being announced on Women's Day and Faye Mfikwe, FNB Chief Marketing Officer also shares her thoughts.

 

FNB shines for 3rd year in a row as the most valuable financial services brand in 2022

8 August 2022: FNB CEO, Jacques Celliers and FNB Chief Marketing Officer, Faye Mfikwe, touch on what it means for the bank to be named the top financial services brand in Kantar BrandZ's Most Valuable South African Brands 2022, with brand value increased by 30% to $3.5 billion this year.

 

FNB announces sponsorship of Cape Town City Football Club

1 August 2022: Rob Gwerengwe, CEO of FNB Middle Market, said the sponsorship formed part of the bank's legacy of supporting the country's sporting talent and providing them with a platform to showcase their skills.

 

Trusts no longer considered useful only to the affluent with 'tax problems'

27 July 2022: Head of Client Experience at FNB Fiduciary, Matlhodi Leteane, highlights the necessity and usefulness of Trusts for any individual's Estate Plan. She also touches on how Trusts work, what they cost and the risks involved.

 

FNB highlights the effect of the recent MPC on Cash and Investments

24 July 2022: With the recent Monetary Policy Committee (MPC) further increasing the repo rate, FNB Wealth and Investments Solutions CEO, Bheki Mkhize, touches on the increase in interest rates and breaks down the impact on equity stocks, focussing on how it will differ per sector.

 

FNB lifts its prime lending rate after repo rate increase

21 July 2022: FNB CEO, Jacques Celliers commented that the South African Reserve Bank's rate hike aligned with global trends to curb inflation and cautioned that further rate hikes by the central bank are a possibility in the coming months.

 

FNB is officially the new Comrades Marathon sponsor!

12 May 2022: Comrades Marathon Association (CMA) Chairperson, Mqondisi Ngcobo proudly announced the new FNB sponsorship and the FNB Brand Experience Head, Bonga Sebesho also shared his thoughts.

 

FNB customer service takes the lead

12 May 2022: FNB CEO, Jacques Celliers touches on the release of the Ombudsman's 2021 Annual Report and its critical role in assisting customers and banks resolve complaints.

 

Bank Your Change® helps FNB retail customers save over R5.5 billion

09 May 2022: CEO of FNB Retail, Raj Makanjee touches on the success of the innovative Bank Your Change® feature, alongside CEO of Cash Investments for FNB Retail, Himal Parbhoo, who also shares his thoughts.

 

FNB top 40 ETF voted as having the best tracking efficiency over 3 years

03 April 2022: FNB Top 40 exchange-traded-fund (ETF) has been voted as South Africa's best exchange traded product (ETP), when considering tracking efficiency over three years, in the annual South African Listed Tracker Awards (SALTA).Bheki Mkhize, Head of FNB Wealth and Investment Solutions, explains why this award is a major feat for us and highlights our commitment to enabling better and simpler access to the stock market.

 

SA can reap the benefits of commodity boom despite crosswinds, says FNB

25 March 2022: 24 March 2022, Johannesburg: Following the South African Reserve Bank's (SARB's) decision to raise its repo rate by 0.25%, FNB will adjust its prime rate by 0.25% with effect from Friday, 25 March 2022.

 

FNB sees growing appetite for investments as clients embrace digital platform

16 March 2022: Significantly more investment accounts were opened by clients between June and December 2021. As part of FNB's focus of becoming an integrated financial services provider that is relevant to customers' needs, FNB Wealth and Investment's proposition is attracting clients who are new to investing.

 

Exclusive Rugby World Cup Sevens pre-sale tickets now on offer for FNB customers

17 February 2022: Great news for both FNB customers and RMB Private Bank clients, as they can now access a private 72-hour pre-sale opportunity to purchase tickets for the Rugby World Cup Sevens 2022 in Cape Town. FNB Chief Marketing Officer, Faye Mfikwe elaborates further.

 

What you need to know about Tax-Free Savings and the closing tax year

15 February 2022: We are fast-approaching the end of the tax season making it the best time to look at your Tax-Free Savings Account and identify how you can take advantage of savings incentives.

 

Tips to navigate the month of love without falling for scams

13 February 2022: Just because it is the month of love doesn't mean you should stop being vigilant with your finances. Fraudsters look for opportunities to like these to scam and defraud you, don't let last-minute decisions result in you letting your guard down when browsing online. Read these tips from FNB to navigate the month of love.

 

FNB unveiled as official Global Partner of Rugby World Cup Sevens 2022

11 February 2022: First National Bank (FNB) is an official Global Partner of Rugby World Cup Sevens 2022 (RWC7s), which will take place from 9 -11 September 2022 at the Cape Town Stadium in South Africa. 'The RWC7s 2022 South Africa is another opportunity for us to continue living our legacy of 'help', 'hope' and 'togetherness', said FNB CEO, Jacques Celliers.

 

Retirement Annuity on App' lets you apply in under three minutes.

07 February 2022: FNB now offers a fast and uncomplicated way for clients to start, or accelerate, their retirement savings journey, using the FNB Banking App. With no lengthy forms to fill out, no financial advisor commission payments and no investment processing fees, this is just another way we aim to assist customers throughout their money management journey.

 

FNB lifts its prime lending rate after SARB repo rate increase

27 January 2022: FNB CEO Jacques Celliers said the Reserve Bank's decision to adjust rates were indicative of a recovery in underlying economic activity. He added that normal operating conditions would be conducive to broad-based economic recovery and benefit the sectors impacted by the pandemic.

 

Handling your retirement capital when emigrating

26 January 2021: Before emigrating, it is vital to consider the financial and opportunity cost implications of moving your local retirement funds offshore. Samukelo Zwane, Head of Product at FNB Wealth and Investment, advised South Africans to be cautious without letting fear influence their decisions.

 

Your New Year lunchbox investment guide

20 January 2022: It's time to set new goals for the year ahead. Just like your lunchbox, you can make better and healthier financial decisions. Let the experts tell you more.

 

What you need to consider when reviewing your Will

21 December 2021: As 2021 draws to an end, it is important to re-evaluate your long-term financial planning, by updating your estate planning (which includes your Wills and Trust affairs). Matlhodi Leteane, Head of Operations, FNB Fiduciary, offers useful tips on what you need to consider when reviewing it this holiday season.

 

World class innovation by employees is both recognised and rewarded

13 December 2021: In celebration of the first cycle of a refreshed Innovators Programme, FNB CEO, Jacques Celliers, shares how the Innovators Programme is designed to help customers with pain points in their money management journey, whilst positively impacting customers in all corners of society, across Africa.

 

Steer clear of investment scams this festive season

07 December 2021: With the festive season upon us, Head of Fraud at FNB Wealth and Investments, Ramesh Ramdeen, highlights some of the most prominent investment scams that seem to be on the rise.

 

FNB Connect partners with Vox Telecom for new fibre for business and software vouchers

06 December 2021: FNB Connect Vox Fibre for Business is officially here and is available for all FNB Business account holders. FNB CEO, Jacques Celliers and FNB Connect CEO, Bradwin Roper, share their thoughts on the exciting new offering.

 

Save more this holiday season by considering these key investment tips

28 November 2021: With the holiday season upon us, Head of Investment at FNB Wealth and Investments, Renzi Thirumalai, shares some insightful tips on what to consider before taking cash out of your pocket.

 

Black Friday activities boost transaction volumes

26 November 2021 FNB CEO, Jacques Celliers and CEO of FNB Merchant Services, Thokozani Dlamini, share their thoughts on the recent Black Friday transaction volumes. Chris Labuschagne, CEO of FNB Card, also elaborates further.

 

FNB wins Best Employer Brand in the 2021 LinkedIn Talent Awards

23 November 2021: Donald Khumalo, FNB HR Executive, explains why at FNB we believe that our people are the heartbeat of our organisation and they remain core to building life-changing financial services and fintech solutions for our customers. This achievement not only highlights our commitment to our employees but also signals our investment in building and growing top talent in South Africa.

 

FNB to lift its interest rate by 0.25% following repo rate increase

18 November 2021: Referring to the recent rate hike, FNB CEO Jacques Celliers said that it was indicative of economic recovery amidst improving domestic demand, rising global inflation and normalising global interest rates. He also expressed hope that the national electricity grid could be stabilised to enable sustainable economic growth.

 

FNB announces R450 million residential property deal

17 November 2021: Amid growing demand and with interest rates at an all-time low, FNB is proud to announce a deal with Balwin Properties that will make R450 million available for the development of Thabo-Echo Village. The deal cemented the bank's commitment to helping facilitate first-time homeowners entering the formal housing market.

 

FNB celebrates winning Best SME Bank in South Africa and Africa

10 November 2021: With FNB now recognised as the bank that best meets the specialised needs of SMEs in South Africa and Africa by Global Finance, FNB CEO, Jacques Celliers and FNB Commercial CEO, Gordon Little, share their thoughts on what the humbling accolade means to the bank and the African continent in which they operate.

 

Planning for your retirement? There are a number of investment vehicles to consider.

08 November 2021: Head of Product at FNB Wealth and Investments, Samukelo Zwane, advises on structuring a retirement plan that evolves and grows, as we advance though our work lives.

 

FNB continues to drive entrepreneurship

04 November 2021: More than 25 000 businesses are now benefitting from industry-leading features through the First Business Zero Account, and over 192 000 entrepreneurs use Fundaba to increase their business knowledge and skills.

 

FNB recognised for supporting female entrepreneurs

26 October 2021: At the Global SME Finance Awards 2021, FNB was acknowledged in the Best Bank for Women Entrepreneurs category through an Honorable Mention for its Women in Business portfolio. FNB is committed to empowering female entrepreneurs and positively impacting the communities in which they operate.

 

FNB Art Prize winner exhibits at the Johannesburg Art Gallery

20 October 2021: Wycliffe Mundopa has won the 2021 FNB Art Prize receiving a cash prize and a solo exhibition at the Johannesburg Art Gallery. As the sponsor, FNB remains committed to empowering artists to become change agents in their communities through their artwork.

 

Assess your finances in your golden years with these five financial steps

18 October 2021: Retire comfortably with complete peace of mind and the financial wellbeing you deserve when you turn sixty by following these five crucial steps.

 

Paying and renewing license discs just got simpler with new online service

11 October 2021: FNB Public Sector CEO, Sipho Silinda touches on FNB's partnership with the Road Traffic Management Corporation, and the new online payment gateway enabling motorists to easily renew and pay for their license discs.

 

FNB leads innovation with the launch of two new payments solutions for SMEs

06 October 2021 As a leader in innovation, FNB continues to invest significantly in creating new platform-based capabilities and solutions to ensure that it stays ahead of changing market dynamics and evolving customer needs.

 

FNB recognised as one of the most Valuable Brands in Africa

30 September 2021 FNB was once again recognised as one of the Most Valuable Brands in Africa according to the latest Brand Finance Africa 150™ 2021 valuation report. The bank was also the highest ranked banking brand in the continent.

 

FNB proves that digital is king with solid financial year-end results

16 September 2021 Positive results lead to a rebound in transactional activity, a growing customer base and a robust migration to FNB's digital platform. FNB CEO Jacques Celliers, shares his thoughts on the bank's solid earnings growth for the year ending 30 June 2021.

Peruse the financial results infographic for an in-depth overview.

 

FNB maintains its position as the Most Valuable Brand in South Africa, for a second consecutive year.

02 September 2021 As a purpose-led brand, FNB continues to push and redefine boundaries on what 'help' means to customers and society. This accolade is testament to the evolution of FNB to become more than just a bank, but rather a trusted financial services and lifestyle partner to their customers.

 

Invest in shares using an FNB Shares Zero Account

26 August 2021 With an FNB Shares Zero Account, customers can begin or expand on their journey of share ownership by investing in global stock markets while paying no monthly account fees.

 

Women need to be involved in decision-making when it comes to their financial future

25 August 2021 Matlhodi Leteane, Head of Operations at FNB Fiduciary, encouraged women to take control of their financial destiny by assessing and quantifying their current and future assets and utilising a professional to put together an estate plan.

 

FNB's global ETN programme soars with new ESG offering

17 August 2021 With the highly popular range of ETNs previously launched by FNB in 2020, the bank now looks to the expansion of their new ETNs having a value-added Environmental, Social and Governance (ESG) overlay, with the same low minimum investment of just R10.

 

FNB is the first to offer smart devices on its app over a 24-month contract

10 August 2021 FNB's customers can now purchase smart devices over a 24-month repayment period via the FNB App - made possible by FNB Connect.

 

FNB looks to retain local talent with more employment opportunities

29 July 2021 With the success of FNB's graduate programme over the years, FNB's CEO Jacques Celliers explores how investing in high-quality local talent can inspire economies and businesses to unlock innovation, growth and social upliftment.

 

FNB confirms relief measures to help individual and business customers impact by unrest

26 July 2021 FNB recognises the significant impact that the unrest has had on individuals, businesses, and regional economies of KwaZulu-Natal and Gauteng. This comes at a difficult time when South Africa is still grappling with the health and economic impact of the Covid-19 global pandemic.

 

Consumers and businesses find relief with unchanged interest rates

22 July 2021 With FNB maintaining its prime lending rate at 7%, the bank's CEO Jacques Celliers praises SARB's decision to keep rates unchanged, enabling consumers and businesses to find relief.

 

The importance of saving and becoming financially resilient

13 July 2021 The devastating pandemic and subsequent lockdowns have reinforced the importance of saving for unforeseen emergencies and unplanned events. In order to accomplish this, as South Africans, we need to identify our personal savings goals and invest our extra funds in the appropriate savings vehicles.

 
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Ensure that your life insurance fully covers your loved ones for the long run

07 July 2021 Head of Growth at FNB Fiduciary, Johan Strydom, touches on the three distinctive phases of financial needs that family members face, after a loved one passes away. He also explores how your life insurance should be able to support these phases.

 

Public sector institutions and their customers are leaning towards digital payments

07 July 2021 CEO of Public Sector Banking, Sipho Silinda touches on the demise of cheques in South Africa and the steady increase in the use of digital payment channels.

 

A glimpse into FNB's 2021 franchise and economic outlook

29 June 2021 FNB Economist, Thanda Sithole, is confident that a solid cyclical economic growth rebound is underway and South Africa is on a slow road to recovery.

 

FNB assists Charlotte Maxeke Academic Hospital with repairs

28 June 2021 In the true spirit of help, FNB leadership, together with RMB, assisted Charlotte Maxeke Academic Hospital with repairs after half its property caught fire in April.

 

Sustainable trade and economic growth is still a possibility for South Africa

24 June 2021 Bobby Madhav, Head of Trade and Structured Trade and Commodity Finance at FNB, gives his views on fuelling South Africa's long-term economic recovery.

 

Five tips for the youth to start building a secure financial future.

23 June 2021 South African youth (aged 18-34) are estimated to account for roughly a third of the country's population. At FNB, we believe that an early start to understanding effective money management will prepare them for a prosperous financial future. We want the youth to embrace, celebrate and inspire positive change through a deeper understanding of how they can achieve financial freedom and eliminate debt. Sometimes it's the smallest change in behaviour that makes the biggest difference.

 

New DebiCheck offering gives debit order collections for businesses a boost

21 June 2021 With DebiCheck being rolled out by all major banks, Head of the Commercial Transactional Pillar at FNB Commercial, Laura Deva shares her thoughts.

 

FNB explores franchise growth post Covid-19

17 June 2021 Head of franchising at FNB Commercial, Morne Cronje shares on the challenges of growing a franchise network post Covid-19.

 

FNB explores how poor pest and disease control threaten sustainability

14 June 2021 Senior Agricultural Economist at FNB, Paul Makube, shares his thoughts on South Africa's well-established disease and pest management regime, as well as the overall risks involved.

 

With power interruptions on the rise, SMEs look to solar energy

10 June 2021 CEO of FNB Commercial Property Finance, Preggie Pillay and his team, urge SMEs to consider solar energy as a viable investment to help combat the losses experienced during power interruptions.

 

FNB's Business Call Account aims to help SMEs manage cash flow

08 June 2021 Vaughan David, CEO of Cash Investments: Business at FNB, offers SMEs pockets of wisdom around cash flow management and how the FNB Business Call Account can cater to their specific needs.

 

FNB launches #TheChangeables campaign together with refreshed bank cardss

07 June 2021 #TheChangeables celebrates and inspires positive change across Africa. In the spirit of change, FNB is also launching a refreshed design across its range of bank cards that will be made available to customers at no additional cost.

 

FNB's unchanged monthly account fees leave room for businesses to save

03 June 2021 FNB is keeping monthly account fees unchanged for business customers across the board for the third year running.

 

FNB business customers save more with no changes to monthly account fees

03 June 2021 FNB is keeping monthly account fees unchanged for business customers across the board for the third year running. Some transactions are also free or reduced - read more about how FNB helps business save every month.

 

FNB launches new Aspire bank account

03 June 2021 The new FNB Aspire bank account for middle-income customers will replace the current FNB Gold account. With the new bank account, customers can pay their account fees by using eBucks via the FNB App.

 

FNB is South Africa's most valuable banking brand for a fourth consecutive year

27 May 2021 For a fourth consecutive year, FNB has been voted as the most valuable banking brand in the 2021 Brand Finances South African 50 report, leading with a brand value of R22.1 billion.

 

Money market funds and savings accounts - the key differences

03 May 2021 2021: Money Market funds and savings account are instruments used by investors and savers, looking to grow wealth in a risk averse manner. There are however key differences in the various savings solutions that investors and savers need to be aware of.

 

FNB sets a new standard for protecting customer data

20 April 2021: FNB set a new norm for handling customer data in the South African banking industry. Customers can now update and manage their personal and business details to ensure compliance via a secure financial platform.

 

Simple habits to help drive your children's behaviour with money

13 April 2021: Supporting your children with their physical, emotional, social, financial and intellectual development from a young age is critical before they mature into adulthood.

 

Unchanged interest rates a catalyst for sustainable economic activity

25 March 2021: Johannesburg: Following the South African Reserve Bank's (SARB) decision to keep the repo rate unchanged, FNB will similarly maintain its prime lending rate at 7%.

 

FNB acquires Selpal to accelerate financial inclusion in townships

23 March 2021: FNB has made significant strides in supporting and becoming more relevant to community-based businesses. To reaffirm its commitment, FNB has acquired 100% of Selpal - a fintech company that operates specifically in townships and rural sectors of the economy.

 

Added value through cost-effective solutions and rewards for FNB customers

18 March 2021: Practicing healthy money habits and adjusting how you do your everyday banking can go a long way in stretching your money further for your short and long-term goals. Over the years, FNB has been on a journey to help its customers to better manage their money through cost-effective financial solutions, a broad range of safer banking channels and meaningful value through eBucks, the best rewards programme in the industry.

 

Understanding your options to tax-free saving and investment success

11 March 2021: The first of March 2021 ushered in a new tax year for South Africans, which means it's a good time to invest some time and thought into how you put in place a well-considered money management plan for the coming 12 months.

 

Covid-19 is fundamentally changing the philanthropy landscape

11 March 2021: In many ways the Covid-19 pandemic brought out the best in mankind. At the height of the pandemic, people and organisations demonstrated levels of care and empathy that exceeded anything we have witnessed in recent history.

 

FNB interim results reflect improvement in economic activity

04 March 2021: First National Bank's (FNB's) performance for the six months to 31 December 2020 reflects some improvement in the operating environment despite sustained pressure on consumers and businesses due to Covid-19 and the related lockdown measures.

 

Five money principles to live by

18 February 2021: Money matters and finances continue to be a widely talked about subject. The pandemic has not only been onerous and taxing on everyone's lives, but it has also created undue financial pressure on households globally.

 

Five money principles to live by

18 February 2021" Money matters and finances continue to be a widely talked about subject. The pandemic has not only been onerous and taxing on everyone's lives, but it has also created undue financial pressure on households globally.

 

FNB's holistic help to minimise the impact of the pandemic

10 February 2021: In 2020, the Bank offered digital platform -based Cashflow Relief to individuals and business customers, covering 700 000 agreements with loan balances in excess of R100 billion. FNB Life assisted with R300 million worth of Credit Life claims for customers who sadly were retrenched.

 

Offshore trading enhanced by comprehensive, high-quality research

08 February 2021: 08 February 2021: A well-considered offshore investment or share trading strategy is an effective way of diversifying a portfolio geographically which, as the increased market volatility created by Covid-19 has demonstrated, should be a non-negotiable component of any investment strategy.

 

FNB's eBucks rewards programme is revolutionising financial services

02 February 2021: eBucks is South Africa's leading rewards programme that has spent the past 20 years driving good banking behaviour and rewarding customers. To date, customers have redeemed R13.3 billion in eBucks through a network spanning 30 partners nationwide.

 

SA's only provider of life insurance that pays-out claims proactively

26 January 2021: FNB Life is rapidly transforming life insurance and providing digitally-led platform insurance solutions. FNB Life is the only insurance provider in South Africa that uses Home Affairs Data to proactively pay-out claims.

 

2021 represents a new start despite second wave

21 January 2021: With interest rates remaining unchanged, FNB CEO Jacques Celliers points out that although the Covid-19 pandemic continues to impact our society, there is room for relief if we all do our part.

 

Thrive in 2021 with SA's Best Digital Bank

19 January 2021: FNB was recently awarded top honours for both the mobile Banking App as well as the Internet Banking categories by SITEisfaction. See how the bank is further increasing its focus and investments on technology and data platforms to assist customers in 2021.

 

Bank on SA's most valuable brand in 2021

11 January 2021: This year, FNB is increasing its focus on building even more trust and further assisting their customers to thrive - despite increased economic uncertainty.

 

Global Recognition for SA's Best Business Bank

04 January 2021: FNB's market-leading approach to providing helpful and contextual financial solutions to support business customers has been recognised through the accolade of Global SME Bank of The Year at the Global SME Finance Awards Ceremony late in 2020.

 

End of cheques a giant leap into digital payments future, says FNB CEO.

28 December 2020 By 1 January 2021, individual consumers and businesses will no longer be able to cash cheques in South Africa. This follows a joint announcement by the SARB, FSCA, PASA and BASA which confirmed that the issuing and acceptance or collection of cheques will cease from 31 December 2020.

 

Employees recognised for pioneering platform innovations

09 December 2020: Employees are challenged to constantly think differently, therefore innovation is embedded in their DNA - the longstanding Innovators programme showcases and celebrates platform innovations.

 

FNB expands the list of international brands where investors can get exposure from as little as R10

01 December 2020: Following the overwhelming response to the listing of Exchange Traded Notes (ETNs) on its platform, FNB is expanding the list of international companies available by adding Adobe, Ford, Activision Blizzard, Berkshire Hathaway, Goldman Sachs, JP Morgan, PayPal and Visa.

 

Glimmer of hope despite a tough economic year, says FNB

19 Novermber 2020, Johannesburg: Following the South African Reserve Bank's (SARB) decision to keep interest rates unchanged, FNB confirms it will keep its prime lending rate at 7%.

 

FNB unveils new Smart Solutions for consumers and a marketplace for SMEs on its banking App

09 November 2020: FNB has launched its latest edition of innovative nav» Smart Tools on the FNB App to help customers manage their money better through dynamic budgeting; as well as facilitating access to market and creating a digital marketplace for FNB-banked SMEs in the home services category.

 

FNB crowned the best SME Bank in the world

28 October 2020: FNB announced as the SME Bank of the Year at the Global SME Finance Forum Virtual awards ceremony held on 27 October.

 

FNB and Shoprite Group help customers replace bank cards in stores

26 October 2020: FNB and the Shoprite Group have expanded their partnership by allowing FNB Easy Pay As You Use and Smart Option account holders to replace lost or stolen bank cards in more than 700 Shoprite and Checkers stores across South Africa.

 

SA Rugby delighted to announce the extension of the FNB sponsorship

13 October 2020: SA Rugby and FNB confirmed on Tuesday that the South African banking giant has extended its sponsorship of the Springboks for a further five years.

 

FNB has announced that consumers can now own shares in Apple, Amazon, Facebook, Tesla & Netflix for as little as R10

7 October 2020 First National Bank (FNB) has announced that individual consumers and institutional investors in South Africa will now have an opportunity to get exposure to shares from as little as R10 in some of the world's best performing companies such as Amazon, Facebook, Apple, Microsoft, Netflix, Tesla, Coca Cola and Alphabet which owns Google

 

Your wardrobe can help you understand your share portfolio

28 September 2020 - Building a balanced and well diversified portfolio is the aim of every long-term investor, but it can be easier said than done. Building your wardrobe is a far less daunting topic than building a portfolio, however both share similar characteristics.

 

Vumela Fund invests R16 million in Sea Monster to unlock digital solutions

04 August 2020

 

FNB and RMB heed the call to improve food security in Mpumalanga

12 August 2020

 

How to carry out your wishes in a Will

05 October 2020 Many people still don't see the value of having a valid Will. However, the COVID 19 pandemic has encouraged people to pay more attention to their estate and assets. According to FNB, over the course of lockdown there has been an increase in the number of people who are taking interest in drafting or updating their Will.

 

FNB appoints Siya Kolisi as Brand Ambassador

 

Distinct signs of economic revival

17 September 2020 Following the South African Reserve Bank's decision earlier today to keep interest rates at their previous level, FNB confirms that it will maintain its prime lending rate at 7% and will review its position following the next SARB MPC meeting.

 

FNB results despite the impact of COVID-19 pandemic

10 September 2020 First National Bank (FNB) presents it's annual results for the financial year ending 30 June 2020. The Bank acknowledges that the year has been very hard for many due to an economy that was already struggling before COVID-19, escalating health risks as well as financial difficulties for both customers and businesses.

 

FNB scoops top spot in the Brand Z Most Valuable Brands Report

02 September 2020 FNB has taken the top spot in the 2020 BrandZ Top 100 Most Valuable brands South African report. The report highlights that FNB is valued atR46.4 billion($2.8billion) and has risenin brand contribution with increased equity in all measures, and particularly in meaning and salience.

 

FNB's new brand campaign inspires South Africas to Help and have Hope

30 July 2020 FNB has launched its new brand campaign calling on all South Africans to rally behind local business to help rebuild the economy.

 

FNB launches a Virtual Card to expand its payments ecosystem for individuals and businesses

29 July 2020 FNB is expanding its digital payments ecosystem by launching a Virtual Card for individuals and businesses customers.

 

Online shopping surges due to Covid-19

28 July 2020 Covid-19 lockdown regulations coupled with store closures have resulted in several consumers returning to online shopping for essentials products and services.

 

FNB will be reducing its prime lending rate to 7% from 7.25%

23 July 2020 Following the South African Reserve Bank's (SARB) decision to cut its lending rate by 0.25%, FNB will be reducing its prime lending rate to 7% from 7.25% with effect from Friday 24 July.

 

Over 400m in eBucks spent by customers during lockdown.

22 July 2020 At the beginning of this year, nobody could have predicted just how economically challenging the year 2020 was going to be.

 

Key considerations when investing in turbulent times

Johannesburg, 16 July 2020 The stock market can be volatile, but it's a market that many people will delve into at some point in thier lives whether diretly buying shares or through their employer retirement saving fund.

 

FNB provides additional credit insurance benefits to cover customer's COVID-19 relief instalments

16 July 2020 FNB Life is extending credit life insurance benefits to cover a portion of cashflow relief instalments for customers who already have credit life insurance. Under normal circumstances, customers pay an additional amount to extend insurance cover, however the provider is extending this benefit to protect quialifying customer against the financial impact of COVID-19.

 

Impactful maize meal initiative launched to help feed vulnerable South Africans

13 July 2020: In the wake of the Covid-19 pandemic coupled with millions of South Africans going hungry daily due to adverse economic conditions, Grain Care and FirstRand SPIRE fund, through RMB and FNB have launched a substantial grain campaign aimed at providing maize meal to vulnerable communities.

 

FNB discontinues cheque issuance

Johannesburg, 07 July 2020: FNB today announced that it will be discontinuing the issuing of cheques by 01 January 2021.

 

Creaate a goal-based investment mindset

Johannesburg, 06 July 2020: Goals whether short or long-term form the foundations of your everyday life and your financial plan.

 

FNB zero rates monthly service fees on Tax-Free Savings Account


03 July 2020: The recent global health pandemic has caused uncertaintyfor people, business and investment experts across the globe. With low levels of confidence due to poor economic outlook and market volatility,South Africans are urged to look at their investment vehicles to determine which will offer the best returns given the current circumstances.

 

Managing your estate planning during lockdown


03 July 2020: In 2019, the Master of the High Court confirmed that as many as 75% of estates reported, are for South Africans who died without a valid Will. However, Johan Strydom, Head of Growth at FNB Fiduciary says that this may be set to change as people become more aware of their own mortality under the COVID-19 lockdown.

 

Investing in bonds: The search for yield continues


03 July 2020: Equity market instability and low cash interest rates have left savers and investors, both locally and abroad, taking another look at government bonds as a potential area of investment.

 

FNB is South Africa's best digital bank


24 June 2020: First National Bank(FNB) has been voted as the best digital bank in the 2020 SIEisfaction®. The bank dominated overall customer satisfaction metrics in the both the Best Mobile Banking and Best Internet Banking categories

 

First National Bank becomes the first in South Africa to accept UnionPay Contactless Payment at its SpeedPoint Terminals.


17 June 2020: First National Bank becomes the first bank in South Africa to accept UnionPay Contactless Payment at its SpeedPoint Terminals

 

FNB customers, employees and partners encouraged to donate directly to National Solidarity Fund


01 June 2020: FNB has expressed its gratitude to employees, customers and partners for donating funds as well as eBucks to the FNB bank account that was created to support the National Solidarity Fund.

 

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Embracing the evolution of supply chains


06 July 2017 - Supply chain has become one of the key strategic hubs of many companies' activities; business is now conducted in a world where players as far away as Turkey and China are able to compete with a South African company successfully in terms of price when moving goods from point to point. This indicates that Freight forwarding and logistics works on a new set of rules in the 21st century, breaking with tradition may just be the only way to remain a player in a sector that has no borders.

Zak Sivalingum, FNB Regional Head in Gauteng East shares six areas that should be addressed in order for SA's Freight Forwarding and Logistics industry to remain competitive. These 6 areas were recently discussed with stakeholders from the Logistics Industry where the focus was around some of the challenges as well as opportunities that currently exist in the Industry.

Adopting technology and a millennial mindset - Technology has made it easier and more cost effective to use specific tools to move freight. Making use of optimisation engines, routing and scheduling tools can ensure that cargo is distributed timely and with optimal capacity, helping to decrease the overall cost of moving goods between two points.

South Africa's infrastructure impeding competitiveness - There is a general lack of infrastructure which puts SA companies in the top end of pricing. Government initiatives such as the Durban Dig Out Port and Tambo Springs in Ekurhuleni are a step in the right direction; however, the predominant form of delivery mainly makes use of roads infrastructure as opposed to rail which is far more expensive.

Alignment between government and business - Better alignment between business and government could improve the speed and process of transfer of cargo. Where you may find that customs makes use of cutting edge systems to ensure rapid clearance, other related stakeholders are either not using the same system or have no access to the existing system. This increases the time required to move cargo, it also increases opportunity for fraud and in the end, hits the respective business and consumers the hardest.

Cost of physical logistics is too high - The size of Southern Africa means that the distances that cargo moves takes too long from point of departure to its final destination. One of the major cost drivers is that Southern Africa uses road as opposed to rail. Over time the cost of fuel, toll gates, wear-and-tear of vehicle all summates to an expensive total cost of overall operations. If we are to compete globally, we may need to use countries such as the USA as case studies where freight also travels over land for a significant distance yet their costs are lower.

Industry collaboration needs to be considered more - As cargo vessels increase in size all the time, naturally it will become cheaper to move cargo from point to point due to shared costs for a single trip. A truck, in sharp contrast only carries one, maybe two containers, making this a lot more expensive. Both importers and exporters need to consider more consolidations.

Skills Development - If you consider that by 2050 Africa will have almost half of the world's population, then you see that the future of growth in this industry lies in being able to execute both cost and speed of delivery effectively to the rest of Africa, and doing so using new thinking that incorporates the use of technology.

"This is the challenge for an industry steeped in a traditional way of doing business. It is important now and will remain so in the future to embrace the concept of "data mastering", which will ultimately determine the winners, moving away from a "cost-oriented" approach to a value-oriented one" concludes Sivalingum.

Make saving part of your lifestyle


3 July 2017 - The volatility of the South African economy, coupled with the recent downgrades has put consumers under immense financial pressure. A need exists for consumers to re-evaluate their lifestyles and make savings part of their daily routine.

"Challenging consumers to spend less now and save for later has become an important objective under the savings month theme," explains Ester Ochse, Product Specialist at FNB Financial Advisory.

"Saving should not only be seen as a once off exercise but should rather become part of a lifestyle change. This simple principle should be ingrained in us from a very young age to ensure that we embrace a savings culture that can benefit us in the future,"" she adds.

"Setting a small amount aside each month can help you reduce stress and at the same time shape your long-term future or help you cover those unforeseen expenses that may crop up. Worrying about monthly expenses can lead to stress and a variety of other health problems like depression, anxiety to mention a few. Finding simple, new and innovative ways to save money can help you lead a longer, happier life," says Ochse.

Simple ways to eliminate unnecessary stress and help you SAVE more:

  • Buy what you need - Determine what you need and what you don't need. Sometimes we become 'impulse buyers' and tend to waste our money on unnecessary clothes, cosmetics, toiletries etc. We often buy them just for the sake of buying or because it's trendy. Ask yourself the question: Do I need it and will I use it?
  • Home cooking - Cooking at home is not only healthier but also more cost effective, than buying take-outs daily. You will be surprised with how much you can save by just cooking a healthy meal for your family. Plus an added bonus is that you can take it for lunch the next day.
  • Save your spare change in a FNB Savings Account - Instead of putting your loose coins or notes under the bed or couch, open an FNB Savings account which will give you the options of transacting and traditional savings benefits that will help you achieve your savings goal.
  • Have coffee at home or at the office - we all love going to coffee shops, but the cost adds up considerably overtime. Rather have your cuppa at home or the office. Not only does it save you time but also money.
  • Become your own Do It Yourself (DIY) expert - Look at DIY blogs, apps or even Pinterest to find easy DIY solutions for yourself and your common household problems. If the problem is big, call in an expert if not then just DIY.
  • Pay off debt ASAP - Debt can lead to high interest rates and if poorly managed, it can result in health problems over time. Money used in interest is money given away, so be responsible and take out only 'good debt' and ensure that you pay it off as soon as possible.
  • Become a minimalist - Create a clutter-free lifestyle, live simply and be content with what you have.

"Creating reasonable goals and setting milestones could help you achieve your savings goals faster. It requires time, effort, patience and dedication but at the end of the day it will be worth it," concludes Ochse.

The importance of balancing risk, growth and access is a priority


05 July 2017 - South Africa's low growth economy presents small and medium enterprises with a number of challenges, not least of which is how to balance the need to grow and preserve cash reserves for future use in business. Managing investment risk while retaining access to the funds when they are needed, are also important considerations.

Ancley Jacobs, CEO FNB Cash Investments, points out that most SMEs have three main considerations to keep in mind when approaching the management and saving of their cash reserves.

"The primary consideration for any small or medium business is managing investment risk by ensuring that cash on hand is invested where it is safe and the capital is fully guaranteed," Jacobs explains.

Secondly, Jacobs acknowledges that liquidity is a priority for most SMEs. He suggests that it should not come at the expense of growth meaning cash should be "parked" in an interest bearing savings or cash investment account that offers growth to curb the effects of inflation, while still giving instant or quick access to savings.

"Apart from the need to have cash on hand in savings and cash investments with instant or quick access to money, SMEs also need to be able to access cash invested over the medium and longer term for regular planned future expenses like tax payments and staff costs such as bonuses, as well as large future expenses such as assets or growth projects", says Jacobs.

"Typically, when it comes to cash savings, the solutions offered by banks are built around a balance between ease of access and term of savings," Jacobs explains, "so a business that is prepared to agree to long lead times when it comes to accessing its cash will typically enjoy a higher growth rate."

This term-based approach can be well suited as a way of growing cash available to the business that have a clear view of their timeline for future cash needs, which is why, for the SME that is unsure about exactly when it will need to access cash. Jacobs recommends finding a solution that offers quick access at no cost.

He uses the recently launched FNB 48 Hour Cash Accelerator savings solutions as an example of a business savings solution designed specifically to balance the needs of having quick access to savings while enjoying healthy growth. "The solution was developed with the specific cashflow and growth needs of businesses in mind and, as such, it combines a very competitive interest rate with an appealing 48-hour notice period to access cash invested, coupled with the assurance that the capital and quoted returns are fully guaranteed."

"Given that a significant reason for putting your cash into a savings account is to help grow the money during the times that you don't need it, earning returns that keep up with inflation is important," he states that, "apart from the benefit of being able to access your cash quickly, it will also actually be worth more than when it was deposited."

"Owners of these businesses therefore need to make absolutely sure that they fully understand their short, medium and long-term cash requirements to ensure that they have an optimised solution that offer a balance between the risk, growth and access that their business, can be comfortable with," Jacobs concludes.

Signs you are misusing your credit card


04 June 2017 - If you constantly find yourself impulsively spending on your credit card, yet dreading to check how much you owe on your statement at the end of the month, there is a high likelihood you are misusing your credit card.

Jonathan de Beer, head of collections at FNB Credit Card, says a credit card can be quite convenient and rewarding if you need safe and instant access to cash. However, you can easily find yourself in an unnecessary financial predicament if you are not careful with your spending.

He points out five tell-tale signs you could be misusing your credit card:

  • Feeling guilty after spending - guilt could indicate that you are either buying what you do not really need, buying without checking your budget or you know you shouldn't be making the purchase but you are still going ahead because you can.
  • Can't pay extra on your credit card debt - if you can't even afford to make an additional payment on the required minimum monthly amount, you could be heading for trouble and need to carefully monitor your spending.
  • Getting a shock when checking your statement - a good debt management strategy involves knowing your current financial position and putting measures in place to manage it. This involves keeping up to date with your spending on a regular basis.
  • Shuffling debt between different credit cards - having multiple credit cards and using them to settle your debt could leave you in serious financial difficulties. This should be avoided at all cost.
  • Not saving because of debt - being overstretched financially to such an extent that you are living off your credit card and cannot afford to save leads to money problems, especially when dealing with unforeseen emergencies.

"If you notice any of these signs or find yourself excessively spending beyond your means, it is not the end of the road, as there are important measures you can immediately take to gradually turn your situation around," advises de Beer.

The first step is to list all your debt, spend carefully and only when it is absolutely necessary, formulate a realistic budget and stick to it. Lastly, try and pay a little extra towards your credit card debt every month.

"In extreme debt situations consumers are advised to seek expert advice as soon as possible in order to minimise the impact," concludes de Beer.

10 tips to save on banking charges


06 June 2017 - If you can't quite put your finger on bank charges when checking your statement every month, it is possible that you either don't have the best banking account that suits your transacting needs or may have adopted behaviour that is costing you a bit more.

Ryan Prozesky, CEO of FNB Value Banking Solutions, says in principle, choosing an ideal banking account for your needs, keeping abreast of fees and knowing what value you are getting from your bank should help you avoid unnecessary bank charges.

He shares ten tips on how to save on banking charges:

  • Choosing the right account - never choose a bank account merely on its monthly administration costs, rather base the decision on your transacting needs to avoid incurring additional charges. For example, on a pay as you use structured account you may be charged extra everytime you make a transaction, while on a bundle offering you are able to perform multiple or unlimited transactions without incurring additional charges.

    A pay as you use structure would be best suited for a customer with a low number of monthly transactions, while bundle offerings are best suited for those with a higher number of monthly transactions. Make sure that you chose a bundle with the most appropriate number of transactions included in the bundle, based on your monthly transactional needs.

  • Avoid using another bank's ATM - avoid withdrawing money at an ATM belonging to another bank as the costs are higher than using your bank's one.

  • Bank on digital channels - whenever possible try and use digital and electronic channels for transactions as these are usually free or attract lower costs compared to using a bank branch. In addition, digital channels offer you the convenience of performing your banking anywhere anytime; thereby saving you time and money by avoiding travelling to a branch.

  • Swiping your card - instead of withdrawing cash to purchase necessities rather swipe your card as it is safer than carrying cash. Check whether your bank offers unlimited card swipes at no additional charge regardless of the amount. In addition, most banks' loyalty programs give customers rewards back for swiping their card.

    "FNB transactional accounts offer a free eBucks reward linkage, enabling you to get something extra back at no additional cost. If you really do need cash, why not add it to your grocery list and withdraw from selected retailer till points. This transaction is usually cheaper than withdrawing from an ATM. FNB offers Cash@till via Shoprite, Checkers, U-Save, Pick 'n Pay, Boxer, PEP and selected Spar stores," says Prozesky.

  • Avoid penalty charges - always make sure there is sufficient money in your account to cover all purchases and transactions you make. This will help you from incurring penalty charges when transactions fail.

  • Overdraft facility fees - An overdraft facility helps meet those unexpected cashflow shortfalls and will help you avoid penalty fees due to insufficient funds. Although FNB only charges customers for having an overdraft facility when they use it, other banks may charge you a monthly fee for merely having the facility, even if you don't use it.

  • Bank Statements - if you have an email address, request your bank to rather email your statement to you instead of posting them. Not only will they arrive much sooner, but you will avoid any charges for postal statements that some banks may levy. If you need to check your transaction history, make use of your bank's digital channels to view your balance, transaction history or download your recent statements for free.

    "FNB now allows customers to download or email themselves their previous three month's bank statements for free from the FNB App, Cellphone Banking and Online Banking. If you need a physical copy of your bank statements avoid high fees by requesting these in branch; rather see if your bank offers the ability to print statements at selected ATM machines. FNB offers you the ability to print your last three month's statements at over 900 ATMs with Deposit machines around the country," says Prozesky.

  • Take care of bank cards - be extra cautious with your bank cards as some banks will usually charge you a fee for replacing them.

  • Monthly caps - exceeding monthly caps for certain transactions may attract additional fees. For example, on certain account bundles, your bank may offer you a number or value of ATM withdrawals for free, with additional charges as soon as you exceed the limit.

Lastly, don't ignore communication from your bank. "Banks often review their account fees annually offering you a breakdown of changes and adjustments. It's important to thoroughly go through and understand these fee changes and how they impact the way you transact on a monthly basis," concludes Prozesky.

Consumers in the dark about disability insurance


26 June 2017 - Consumers who have little or no disability cover in place could face financial difficulties in the unfortunate event of disabilities that often result from accidents or illnesses such as diabetes, heart attacks, depression, mental health, stroke, cancer and back pain, amongst others.

Approximately 30% of FNB Life customers have some form of disability cover. However, only about 3.5% have cover that would be sufficient to cater for their financial needs if they were disabled.

Lee Bromfield, CEO of FNB Life, says most people who take out life cover mistakenly view disability insurance as an additional and unnecessary grudge purchase, until something tragic happens to them.

Moreover, if you have a particular disorder that runs through your family and could potentially lead to some form of disability; it is all the more reason why you need this type of cover.

"Although life insurance ensures that your loved ones are taken care of financially in the event that you pass away, you also need to consider what will happen if you become disabled and have no income to take care of yourself and those who are financially dependent on you," explains Bromfield.

Bromfield says the reason why consumers get it so wrong when it comes to disability cover is not being informed enough to realise the significant impact.

For example, if you suddenly have a stroke, are permanently disabled and can no longer work or take care of yourself, you may find yourself financially stranded. Even if you do have cover through your employer it may not be enough.

Alternatively, if you were to experience back problems and couldn't work for a period of six months or more you may need income to cater for the financial shortfall.

He says a common misconception held by consumers is that disabilities are usually work related and would normally be covered through the Workers Compensation Fund set up by the government. The danger with this notion is that many disabilities can occur outside of work leaving you and your family uninsured.

"When considering the future wellbeing of your loved ones, it is important to strike the correct balance between life and disability cover, and the amount of cover needed depending on your individual needs.

Taking out disability cover should not be seen as a tick box exercise," concludes Bromfield.

FNB Life offers death, disability and critical illness cover, up to R100 million, R50 million and R5 million respectively.

For more information contact:

FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za or 087 335 8277

IFC Initiates Push to Support South African SMEs


Johannesburg, 30 June, 2017 - Today, First National Bank (FNB), firmly committed to playing a bigger role in tackling South Africa's unemployment crisis. A loan agreement in the amount of $200 million (around R2.6 billion) was concluded between FNB parent, FirstRand, and the International Finance Corporation (IFC) a member of the World Bank Group. The loan is aimed at magnifying lending and support for the SME sector in South Africa, where FNB is a leading player.

In an effort to promote growth of the SME sector, the IFC has developed the SME Push Program to channel $2-3 billion (around R26-39 billion) of a wide range of investment into South Africa's SMEs over the next 5-7 years.

"SMEs are one of the most powerful contributors to sustainable economic growth. In South Africa, the sector contributes about 40% to the country's GDP," says Mike Vacy-Lyle, CEO of FNB Business.

The National Development Plan 2030 estimates that South Africa needs to have 8 million active SME's in order to achieve set targets of creating 11 million jobs by 2030. The SME Push Program is designed to align with government policies in order to assist in gearing South Africa towards these set goals.

Oumar Seydi, IFC Director for East and Southern Africa said, "IFC's is committed to promoting the growth of SMEs to spur job creation at a time of economic uncertainty in South Africa, and globally. IFC welcomes this opportunity to help FNB expand its efforts to work with SMEs, and build on a long-term strategic partnership that can increase access to finance IFC's SME Push Program."

"FNB is well positioned to offer the right support to the SME sector. Regardless of the current economic slowdown, we believe that SMEs still represent a massive growth opportunity. Together with the IFC we can collaborate in crafting an era of economic and social development and help shape the county's growth prospects," concludes Vacy-Lyle.

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it's needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity.

For more information, visit .www.ifc.org

SA's first banking app now free across all networks


29 June 2017 - FNB today announced that customers who use its award winning banking app will no longer need data to access it via their smartphones from 1 July 2017.

This follows an agreement with all major mobile network operators in South Africa to zero rate access to the FNB Banking App allowing all customers to use it at no cost. The bank already offers free access to its app to all FNB Connect customers, and offers free WiFi in most FNB branches for customers to download the app.

Giuseppe Virgillito, FNB Digital spokesperson, says "Since launching the app six years ago, not only has it become the most downloaded, but also the popular banking app amongst consumers as recently rated in the SAcsi and Columinate SITEisfaction Index's 2017."

"We believe that access to data or airtime should not be a barrier to safe and convenient banking for South Africans. The zero rating of the app is in line with our broader strategy to migrate customers to digital and electronic channels where a number of transactions and services are already offered free of charge," adds Virgillito.

The FNB Banking App not only offers customers convenience, but increased value through its industry leading features that caters for the basic and advanced banking transactions in the hands of customers.

"We attribute the success of the banking app to continuous innovation and meeting more than the basic banking needs of our customers," adds Virgillito.

Furthermore, with fraud being a global concern for customers that use digital platforms, the latest version of the FNB Banking App boasts industry-leading security features.

The industry first inContact solution has evolved to introduce Smart InContact, which allows customers to receive secure Online Banking transaction approvals on the FNB App which does not rely on SMS or email technology which could be intercepted by fraudsters. Smart inContact on the FNB App also notifies customers of all transactions for free, from as low as one cent, with full control to report fraud with 1-touch of the Report Fraud button to the 24/7 FNB Fraud line. The app also works with Online Banking to verify devices that customers use to transact on their respective profiles. Only verified devices with the app installed receive Smart inContact transaction approvals.

Logins to Online Banking also trigger a Smart inContact notification for customers to be notified whenever their Online Banking is accessed. App users can also now authenticate themselves through Fingerprint ID available to both Android and iPhone owners, which uses a fingerprint sensor to verify the user before giving access to the account profile.

The FNB Banking App is currently ranked the best in South Africa by customers in both the South African Consumer Satisfaction Index 2017, and in the Columinate SITEisfaction Index 2017. The app has also been ranked best in South Africa by international benchmark studies, such as MyPrivateBanking Research and Finalta where international banking experts rank the FNB Banking App as standing shoulder to shoulder with the best in the world.

"Apart from gaining multiple international awards over the years, we still strive to please our customers, and the results are evident in both the SAcsi and SITEisfactions surveys, where when unpacking the detail, consumers rate the FNB Banking App as the best banking app in the country," says Virgillito.

The FNB Banking App features industry-leading solutions such as FNB Pay, Fingerprint ID, Secure Chat, Smart inContact, 1-touch Report Fraud, nav» Car and nav» Home, eBucks Partner locator and FNB TV, amongst others.

For more information contact:

FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za or 087 335 8277

4 reasons why WC is important to the SA economy


28 June 2017 - The Western Cape (WC) is a province that houses an important part of the agri-economy in South Africa. It has seen the worst of the drought on record, dam levels remain low and the province has gone as far as implementing restrictions on water usage throughout the region.

Dawie Maree, Head of Information and Marketing at FNB Agri Business takes us through four reasons why the Western Cape Agricultural sector is important to the South African economy.

1. Why do we need it to rain in the WC? - The WC is probably SA's most important export province in terms of agricultural products. The deciduous fruit industry, wine industry and increasingly the citrus industry is also setting base in the WC, these are all key export produce that contribute significantly to the overall agri-economy in South Africa. Should any of these industries suffer, it becomes detrimental to the agricultural industry as a whole in South Africa and by extension, the local economy.

2. What is the percentage impact on GDP contribution? - The WC contributes 24% to total GDP in South Africa. Agriculture has a total contribution to the GDP of the WC of roughly 4%. But what is significant to note is that agric and agro-processing is responsible for 18% of employment opportunities in the province.

3. How has the drought impacted employment numbers in the sector? - The drought will have the biggest impact on seasonal employment in the fruit industry. Due to possible lower production, less seasonal workers might be employed, with the obvious socio-economic consequences related to a decreased number of those employed. For Q1 there were 215 000 employees in the agric sector in the WC. That is 14.2% less than in Q4 of 2016. A large percentage of these are due to seasonality - It is however 5.9% less than the same period in 2016 (228 000) - clearly a consequence of the drought. The WC has the biggest agricultural workforce in South Africa at 24.5%.

4. What is the long term impact of the drought on both WC and the country? The WC is a central agricultural exports province and the drought, if not broken soon, will definitely impact negatively on the long term economic growth for both the province and the country's economy.

The WC has recently had some rains; however, the drought has not been broken. A major contributing factor of the drought has had a negative impact on the wheat industry, seriously hampering supply, with the knock-on effect on wheat prices and possibly the bread price. Although SA is a net importer of wheat, this might mean that we will have to import even more wheat than we normally do. Some of the losses in wheat production might be offset by increasing production in the Free State and Northern Cape.

"We must keep in mind that although agric only makes up around 4% of the sector when compared to other industries, the majority of agric's production, in access of 70%, gets used by the manufacturing industry and the Western Cape is an key contributor to this. Should agric suffer; the whole value-chain will suffer" concludes Maree.

What documents do you need to open a bank account?


Johannesburg; 27 June 2017 - Opening a bank account is a hassle free process, but before a bank can initiate the account opening process, there are some important documents that are required.

Lee-Anne van Zyl, CEO of FNB Points of Presence, says "While the account opening process is simple, most people are still not sure which documents are required. With the change of laws in South Africa, a South African identity document is no longer enough as the bank has to comply with laws such as the Financial Intelligence Centre Act (FICA), which require banks to have the correct and up to date information for new and existing customers."

Here is a list of documents required before opening a bank account in South Africa:

  • Proof of Identity: This must be a valid bar coded green ID book or a Smart ID card that belongs to the prospective account opener.
  • Proof of address: A document which reflects a permanent residential address such as a municipal utility bill or clothing account statement that is not older than 3 months from the date of issue.
  • Minimum Opening Deposit: This is the minimum amount required to activate the account, it may vary on the type of account you are opening.

Foreign Nationals

Foreign Nationals who reside in South Africa can open bank accounts, but before the account opening process commences there's declaration they must sign. This is a list of the required documents:

  • Passport: a valid passport clearly stating the full names and country of origin of the applicant.
  • Proof of address: an official document such a utility bill which reflects the applicant's residential address, which is not dated older than 3 months.
  • Study permit/Work permit: This would apply to either foreign nationals who work or study in South Africa, the bank requires a valid study permit or a work permit issued by the Department of Home Affairs. It's important to note there are other permits that the bank accepts, these include: business permit, residence permit, retired persons permit, exchange permit, relative permit, medical treatment permit and visitors permit.
  • Minimum Opening Deposit: This is the minimum amount required to activate the account.

"Opening an account is relatively easy, but if there any outstanding documents it can add unnecessary delays. At FNB, you can open an Easy Account for as little as R5.25 on the pay as you use option or R53 for a bundle which offers a number of benefits" says van Zyl.

For more information contact:

Dumezulu Shiburi- FNB Corporate Communications
Tel: 087 328 0990 or Email: dumi.shiburi@fnb.co.za

SMEs must diversify


09 May 2017: The SA economy is proving resilient in the wake of the recent downgrades, the rand is slowly recovering and business seems to be weathering the storm, however, this should not stop businesses from diversifying both their business and investment portfolios.

"Adopting the ostrich mentality will not work for SMEs in a shrinking economy. The idiom "make hay whilst the sun shines" is the most relevant in this current economy. The reality is there is less money in the economy and debt is becoming more expensive to hold so most customers are decreasing their spend and credit exposure. If SMEs want to win they need to be far more diversified" says Mags Ponnan, Head of Customer Value Propositions at FNB Business.

Diversifying your business simply defined means growing a company's service/ product offering range to providing more variation or options to the market. Through this process a company gains new customers, increasing its market base and also drives expansion success. A bigger customer base means an increased pool of business income, which in trying times is a saving grace because the business in effect has more than one stream of income.

Ponnan takes us through a few ways in which businesses can diversify:

Increase channels to reach consumer − A good approach would be to open an online store where you can sell directly to consumers. This means that you have a direct channel to the consumer that costs less and provide the business with a new set of customers who are increasingly turning towards digital platforms for ordering products and services in SA.

Increase geographical reach − The SME can look into signing deals with retailers that are available in other provinces, cities and even countries outside of where the business is geographically based. Increasing the geographical reach increases the number of customers that can be reached.

Develop new product/ service − Another effective way to diversify is to create new products, by increasing the product range, creating versions of the product that differ from an entry level version to a high end version of the product. Creating variations increases the number of customers that your product can reach because price variation means a lot additional people can afford the product.

Invest into an aligned business − One of the more aggressive ways of diversifying is a business buying into or buying out a related business either in the same market or related markets. For example a vertical integration will enable the business to control his product lifecycle where he will now be able to impact the raw materials being used or even the distribution channels used by his customers.

Save for a rainy day with Investing a portion of your profits on a monthly basis will allow you to build a nest egg that you can fall back on in the future in case of an unforeseen expenses or when you need funding for expansion of your business' geographical footprint or for the build of a new product.

"In tough times, only those willing to go beyond the norm are bound to win, SMEs need to think about their business far more creatively, the approach should be to spread your reach and not have all your eggs in one basket" concludes Ponnan.

Lessons learnt from the recent droughts. A focus on the Agricultural sector.


04 May 2017: Dawie Maree, Head of Information and Marketing for Agriculture at FNB Business

Apart from the Western Cape, the gripping drought that hung over the country has finally weathered away, the agricultural sector has more than recovered to a projected record harvest.

Good rainfall over most of the summer grain producing areas, a lot of rested lands, improved cultivars and the use of technology resulted in record crops for both maize and soya beans. The maize crop increased from roughly 7.7 million tonnes to a projected 14.3 million tonnes.

The intensive livestock sector, such as feedlots, dairies and broiler producers, has also benefited from the rains as there will be an improvement in the feed margins. However, the extensive livestock sector, farmers producing from grazing, is still not out of the woods yet. A lack of good rainfall and very low dam levels in the Western Cape are concerning, however, we remain hopeful as we head into winter, that the usual winter rains begin to fall across the province.

So what are the lessons we have learnt from this drought: Lesson 1 - First, it is important not to lose focus of your long term strategy. In farming, droughts will come and go, but how you plan to overcome a drought is an important part of the business. Do your production budget, feedflow plan and all other budgeting with both an optimistic view but always factor in a worst case scenario. If your farm can overcome the worst case scenario, then you will be fine.

Lesson 2 - Try to keep to your cash flow budget as far as possible and for as long as possible. This might mean that you have to sell off non-productive assets, but rather this than the risk of losing productive assets.

Lesson 3 - An important lesson is to diversify and with the current improved conditions, now might be the time to do so. In general, production conditions for the agricultural sector have improved substantially and this is clear in the latest consumer price inflation data release.

Food inflation in March fell to its lowest level in 14 months and the expectation is that it will decline even further given the improved agricultural conditions. Meat inflation is however still lagging the decline. Farmers are in the process of rebuilding their herds and hence slaughtering supply has declined. The declining food inflation bodes well for overall inflation and we saw a surprise decline in CPI to 6.1% in March, down from 6.3% in February.

Some growing concerns - The recent downgrades in which both consumer and business confidence in South Africa took a knock cannot go without mention. The exchange rate fortunately stabilised and recovered some lost territory but one might wonder where it will go over the next few months.

The volatile Rand, combined with an uptick in crude oil prices means we may be in for another fuel price increase in May, and this will further burden the recovering sector.

The agricultural sector has seen the worst in the past year, it has however began to find an upward swing again, the rains have returned, dams have filled up to near capacity, we have gone from a very low maize crop to a record high crop, and yes, the economy may be on a downturn, but just as the drought came and went, so will the tough times too.

The overall takeout is plan for the worst, implement the basics, ensure your finances are in order and talk to your banker in advance. If you get that right then there is no reason why you won't be singing in the rain.

FNB now offers life cover instantly on digital platforms


10 April 2017: FNB Life has taken the next step in its digital evolution by giving customers the option to take up and manage life insurance through the FNB Banking App and Online Banking.

By logging into their profiles, choosing the insurance option, answering medical questions and accepting the quote, customers are able to take up cover within a few minutes.

Some customers may be selected to go for a free medical assessment before the policy starts.

"It has never been easier and more convenient for consumers to take up life insurance," says Lee Bromfield, CEO of FNB Life. "Our new digital offering is a game changer for the life insurance industry in South Africa."

"With innovation being part of our DNA, it will come as no surprise to customers that we have reached yet another milestone by completely integrating life insurance into our banking systems," adds Bromfield.

"Our omni-channel strategy not only enables us to improve service levels, but to continue meeting the unique and ever changing needs of our customers by making it possible for them to access life insurance through our call-centres, financial advisors, branch networks, FNB Banking App and Online Banking."

The integration of life insurance with the bank's digital platforms will afford customers the benefit of a single login to simultaneously manage all their financial services and accounts.

Furthermore, the life cover offering has been integrated into the bank's rewards programme giving customers more value by earning up to 15% of their monthly premiums back through eBucks.

Customers can now take up life, disability and critical illness cover for up to R10 million each and R5 million respectively on digital platforms.

Life policy holders will also be able review and update their cover digitally without the intervention of service consultants.

For more information customers can contact FNB Life Centre on 087 736 7774 or email fnblife@fnb.co.za

For media queries contact: FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za or 087 335 8277

FNB extends free WI-FI access at its branches


10 April 2017: The number of Johannesburg FNB branches with active free WI-FI connection has reached 383 as at February 2017, this is as the bank continues to offer free internet connectivity to customers in its branches.

Lee-Anne van Zyl, CEO of FNB Points of Presence says, "By January 2017 over 200 000 customers connected to the internet via free FNB WI-FI in branches. The roll out of free WI-FI is another value-add which shows our commitment to helping all FNB customers bank digitally.

The fundamental aim of this initiative is to offer cheaper banking alternatives for customers through the availability free high speed Wi-Fi. Currently, about 187 FNB branches are connected via internet fbre, which enables connectivity at faster speeds."

"The process of providing free WI-FI is ongoing; however, we aim to steadily increase connectivity across most of branch outlets, especially high capacity branches."

Over the years FNB has moved to digitise its branches and avail the option of transacting via digital channels or over the counter. This happened in the form of introducing Digital Zones, which enable customers to transact via their online profiles within the branch.

FNB also has dedicated eBankers across 195 select branches that are deployed to assist customers at Digital Zones. The role of eBankers is to assist customers who transact digitally by giving support where necessary.

"We have seen a marked increase in the use of Digital Zones at branches as customers have the option to use online banking, the FNB Banking App or cell phone banking. There's clearly an appetite for digital banking, but as more customers adopt digital channels we will have to balance this with customers' education," adds van Zyl.

For more information contact:
Dumezulu Shiburi− FNB Corporate Communications
Tel: 087 328 0990 or Email: dumi.shiburi@fnb.co.za

Avoid online travel scams ahead of Easter


3 April 2017: Consumers who are travelling or have not yet finalised their arrangements for the upcoming Easter holidays should be wary of fraudsters who target people who are desperate to secure travel and accommodation at the last minute.

Sahil Mungar, FNB Digital Banking says, "If you have or haven't yet booked your travel and accommodation, not only are you likely to pay a premium, but you could also fall victim to some online scams."

"Fraudsters exploit potential holiday makers by falsely advertising holiday accommodation or timeshares on the internet and social media. Consumers are then deceived to pay upfront in order to secure their bookings. This further gives scammers an opportunity to request ID copies and bank details of their victims, which are then used for identity theft," adds Mungar.

When consumers become desperate to secure holiday travel and accommodation, they can easily overlook scams due to the pressure, only to find out that they've been defrauded when they get to the venue.

Mungar advises consumers to be extra cautious when booking accommodation online ahead of the Easter holidays

  • Always try and book accommodation three months in advance or longer to avoid disappointments. This will help you to qualify for discounts and gives you enough time to do the necessary background and security checks.
  • Use search engines like Google. If you're worried about a property or suspect that the photographs are fake, simply look it up yourself online. Look for reviews from other travelers and Google Maps to ensure that the place exists.
  • Use websites like tripadvisor.com, booking.com and similar websites to check reviews and to book accommodation securely. Generally these websites guarantee the booking.
  • Call directly to publically advertised phone numbers to confirm the booking availability. Even if you get called, rather hang up and call back on the official number.
  • Avoid depositing or transferring money to an individual's bank account or sending your personal details to their private email address. Rather pay online on the accommodation's actual website or in person at the venue.
  • Lookout for suspicious behavior. Take notice of bad grammar in emails, foreign phone numbers, or if the owner or property manager is not responding to emails. These can all be warning signs.
  • If you have friends and family that stay close to the place, ask them to go and verify if it is legitimate.

"To avoid scams, consider checking out properties from reputable travel websites and agents in advance and never respond to online and social media adverts without verifying that the sources are legitimate," concludes Mungar.

For media queries contact:
FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za
or 087 335 8277

A guide to managing you debt


02 April 2017: If you find yourself relying on debt and not your income to survive every month, it is a sign that you need to evaluate your finances to get financial stability.

Eunice Sibiya, Head of Consumer Education at FNB says "it may seem hard at the beginning to make changes to your daily routines, but looking at the end goal is encouraging. Therefore, you should carefully re-evaluate your budget and prioritise paying off debt as quickly as possible."

For consumers who are battling with debt, Sibiya recommends the following measures:

Change the behavior that caused debt problems
The first step of getting out of debt is looking at what got you into debt. Acknowledge the challenge and evaluate your spending pattern as well as your lifestyle. Once you have done this, cut down on unnecessary expenses and channel the money towards paying debt

List all your debts
List all the creditors you owe, the amount owed and the interest of each debt. Then prioritise your debt either by interest rate or the balance of each debt. In addition, decide how much you can afford to pay a month for each debt. Be realistic about what you can afford and stick to your budget in order to avoid defaulting on any payment.

"Consider paying a lump sum to one of your debts while still servicing other debts. Once you have paid off one account, channel the money into servicing the other debts so that you can pay it off as quickly as possible," says Sibiya.

Set periodic goals
Now that you have listed all your debts and have a plan on how you will be paying them off, set a time frame and work towards achieving your goal within the set time. "This will require commitment and discipline from start to finish. The desired goal will be rewarding at the end of the hurdle," says Sibiya.

Track your progress
Track your progress every three months. This will allow you to relook your payment plans to see if it is working or not. If the progress is positive, you will be encouraged and driven to look at the long term benefit of being disciplined and committed to a debt free life. "During this challenging journey, avoid taking more debt until you have paid of all your dues. Discipline and commitment will lead you to financial independence," concludes Sibiya.

For more information contact:
Chloe Hackland − FNB Corporate Communications
Tel: 087 311 9124 or Email: chackland@fnb.co.za

Demystifying five common life insurance myths


23 April 2017: Despite increasing awareness about the importance of having life insurance, some consumers remain confused and undecided due to myths that uninformed people spread through the grapevine.

Lee Bromfield, CEO of FNB Life says "Death is usually the last subject people look forward to discussing over the dinner table. Similarly, life insurance conversations are viewed in the same light and further perpetuated by misconceptions that this form of cover is complex and not easy to take up."

Bromfeld demystifies common myths that consumers have about life insurance:

You'll be subjected to extreme laboratory testing before getting cover
When taking up life insurance you need to complete a medical examination to determine your risk level. A practitioner will either ask you a few medical questions over the phone or a professional nurse may take blood tests at the comfort of your home or workplace. The process is often quick and efficient.

Wealthy people don't need life insurance
While every situation is unique, life insurance plays a significant role when wealthy individuals pass on wealth to the next generation. It can give heirs and beneficiaries peace of mind knowing that costs related to winding up a deceased estate are catered for. For business owners, costs related to selling and liquidating the business or transferring ownership can be covered through life insurance.

Only married people need life insurance
One of the biggest misconceptions about life insurance is that if you are single, don't have children or still young, you do not need cover. Life insurance caters for anyone that is financially dependent on you in the unfortunate event that you pass away

Prevailing health issues will prevent you from getting cover
You may pay a slightly higher premium than the average person if you have a pre-existing health issue, due to your risk profile. However, if the health condition is well managed, you should have no challenges getting life insurance. For example, there are many people living with chronic diseases such as diabetes, hypertension and asthma that have life cover.

"Moreover, people that engage in dangerous hobbies and habits like smoking are also eligible for life cover," explains Bromfield.

I have adequate cover through my employer
Cover provided by employers often comes with its own terms and conditions and ends when you leave your job. Solely relying on this cover can leave you uninsured and result in you paying hefty premiums if you take cover when you are much older.

"There are quite a number of misconceptions that exist about life insurance in general. If you are looking to take up life cover, it is advisable to speak to a professional or your financial services provider to avoid getting misleading and inaccurate information," concludes Bromfield.

For media queries contact:
FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za
or 087 335 8277

Bring back the rains! Implications of persistent drought in the Western Cape


05 April 2017: The agricultural sector has overall survived the worst of the recent drought that gripped the country over the past three years; however, the Western Cape has not been as fortunate - damn levels are low and the lack of rain has led to decreasing soil moisture that is threatening production.

The Department of Water and Sanitation (DWS) reported that dam levels have eased marginally as we approach the end of the rainy season in the summer production areas, reaching 73.7% full versus 54.8% last year during the week ended 03 April 2017. In contrast, the summer rainfall areas of the Western Cape (WC) did not receive sufficient rainfall and dam levels remain critically low at 24.2% full compared to 31.2% last year this time.

"Recent weather forecasts indicate that we might see a return of the El Nino weather pattern in the new season (2017/18), however, it is early days as the situation may improve. Already, the weather forecasts have signalled a possibility of above normal rainfall for late autumn to mid-winter which is a welcome relief for the Western Cape winter crop areas" says Paul Makube, Senior Agricultural Economist at FNB Business.

Makube shares some implications from the drought that is gripping the agricultural sector in the Western Cape.

Wine - Production volumes have declined. However, the drier conditions in general mean improved quality of wine. The lower volumes may lead to a modest increase in prices to the benefit of the producers.

Fruit and vegetables - Not all areas in the Western Cape are badly affected by the drought: an example is the Ceres region which is reportedly doing fine. We must however differentiate between water available for human consumption and that for irrigation. Although the situation with dam levels is dire, some farmers have on-farm water storage capacity for irrigation which is not for human consumption. Nonetheless, some vegetable farmers who do not have this capacity are expected to face a bleak future if it does not rain sooner.

Grain production - the rainy season normally starts beginning of May, so everything is not yet lost. Fortunately, the rainfall outlook has since improved with the possibility of above-normal showers in the winter ahead which will be beneficial for wheat and other winter crops. This will also help alleviate the current water shortages across the Western Cape. Some farmers have opted to diversify into barley production, a product only produced in the southern Cape in the past.

Livestock - the persistent drought conditions are devastating for livestock producers especially for beef, dairy and culling. Stock reduction will result in elevated prices. During a drought, animals lose condition and production suffers which erodes the farmer's margins.

"While both the overall SA producer and consumer inflation are expected to moderate in the coming months, local trends may remain stubbornly high if the drought conditions persists. The agri-value chain may come under pressure and impede potential job growth in the sector. With that said we remain hopeful that the much needed rains will return in the coming month," concludes Makube.

For media queries, contact: FNB Corporate Communications
Benedict Siyotula: Benedict.Siyotula@fnb.co.za or 087 7365227

Cheaper office space for SME's. A business address in a residential area


April 2017: There is a growing trend of businesses opting to move away from office parks into residential areas. This may seem unconventional, but there are certain financial benefits for SME's to make this move.

"With the by-laws considered, yes, buying or renting office space in a residential area makes financial sense" , says Attie Anderson, Head of FNB Commercial Property Finance.

Anderson takes a look at some key considerations that a business has to take into account when deciding to buy or rent office space in a residential area.

What must one consider in terms of where to buy?
The biggest consideration is access to the property. Are the access and exit points adequate for the expected visitors to the premises? Is the site in close proximity to major routes? How will peak hour traffic affect access to the premises?

What are the stumbling blocks with owning commercial property in a residential space?
Residential areas are prone to traffic stacking during peak times, especially close to schools and residents may complain about the rate of activity. In residential areas, sufficient parking space may also be limited.

What are the legislative considerations?
One needs to ensure that the zoning of the property caters for the specific business to be operated thereon. The zoning of the property attaches to the property itself, and not to the owner thereof. In some cases you may require special permission from the local authority ("consent use"). Consent use is normally granted to the owner of the property, with certain strict conditions to be adhered to. This consent use may not be transferred to subsequent owners (consent use therefore attaches to the owner, not the property).

How are rates and taxes calculated? Rates are calculated in accordance with the rates policy of the Council in which jurisdiction the property is situated. Properties with business zoning are calculated at a higher tariff than residential properties. The valuation of the property is normally multiplied by the tariff and divided by 12 to obtain the monthly rates applicable to that property. The valuation of the property will normally differ from area to area.

Is it good to rent or own this type of property?
It is always better to own property in a good area as it will appreciate in value and as you grow it might be an asset that you will either rent out or sell at a reasonable profit.

What types of businesses are best suited for residential areas?
A look at the sector suggests that professionals such as doctors, dentists, accountants and real estate agents seem to move more to residential areas. Other industries that seem to benefit are beauty salons, printing franchises and smaller service providers such as plumbers and electricians.

"The decision to go into a residential area must be one that looks at the long term strategy of the business and its growth prospects, but on the whole, it is clear that there is merit in exploring office space in a residential area" concludes Anderson.

For media queries, contact: FNB Corporate Communications
Benedict Siyotula: Benedict.Siyotula@fnb.co.za or 087 7365227

Breakfast? Yes Please! The cost of bread, dairy, eggs and maize after the drought


07 March 2017: The agricultural sector has survived the worst of the drought that gripped South Africa in the past three years. The recent rains have however positioned the sector favourably in parts of the country.

Paul Makube, Senior Agricultural Economist at FNB Business takes a look at how the drought and subsequent recovery has impacted four basic breakfast foods, namely; eggs, maize, dairy and bread.

Dairy:
This industry has seen pastures improving, thereby reducing the frequency for the need for irrigation which translates to lower electricity costs. In addition, supply outlook for grain crops has improved and the subsequent decline in prices from the second half of 2017 indicates a reduction in food manufacturing cost is eminent.

Producer prices are expected to approach the long-term average share of approximately 37% of the retail prices. "We should see stable to firmer demand with new marketing strategies to reach more consumers in the country, the rebound in the industry following a devastating drought looks positive", explains Makube.

Eggs:

The egg market is stable and producer prices remain at profitable levels. Prices at consumer level have also remained relatively stable with a steady increase on an average of 6% year on year in January 2017.

"We've seen a lot of suppliers enter the eggs market which has increased supplies and placed profitability under pressure. Nonetheless, producers do have an option to reduce their stocks by shortening the lifecycles of their layer hens. The improved grain production outlook bodes well for feed prices, as feeding margins improve towards mid-year" adds Makube.

Bread:
According to statistics issued by the Agbiz, South Africa's total bread production grew by 12% year-on-year (y/y) in December 2016 to a total of 182 million loaves. The growth came from brown bread, it moved up from 82 million loaves in January to 90 million loaves. In fact, from October to December 2016, brown bread production was consistently higher than white bread. Prices of loaves of white and brown bread (700g) increased by 14% and 13% y/y at R13.60 and R12.28 respectively. The price of a loaf of white bread however slowed in January 2017, finishing up 11% y/y while that of brown bread was up 13% y/y.

Maize:
The price of the staple food, white maize, has for the first time in 2017 fallen below R2 000 per ton currently trading at R1 917/ ton, an advantage for food inflation which has remained sticky at double digit levels of 11.8% y/y in January 2017. The latest production estimates indicates a harvest of 13.9 million tons of total maize with the white variety up by almost 144% y/y at 8.3 million tons.

"While this is the first production estimate and is likely to change as the season progresses, our view is that it is likely to improve given the good production conditions. However, the excessive moisture if rains persist coupled with early frost for some areas may result in a slight downward revision to the current crop estimate in the months ahead" cautions Makube.

"The continued fall in maize prices on a year-on-year basis is expected to begin to filter through into the feed prices. Maize is a major input cost component, and a reduction in prices effectively means we will see feed prices begin to slowly stabilise. Agriculture is not out of the woods yet, but it is on its way out of the red and back into the black", concludes Makube.

Eight banking scams to lookout for


20 February 2017: As access to banking services through digital channels continues to grow, so does the need to protect consumers against the prevalence of online banking fraud.

FNB views security as an integral part of a seamless online banking experience. Therefore, due to the prevalence of banking scams, consumers are urged to be more vigilant and familiarise themselves with the different types of online banking fraud.

The bank proactively closes down fraudulent phishing websites used by criminals to try and access customers' confidential banking details.

These are the latest online banking scams that consumers should be wary of:

Flight purchase debit scams - you will receive an SMS informing you of a flight purchase debited to your account. Fraudsters will request you to select a link in the SMS to revise the transaction.

When you select the link, you will be redirected to a fake FNB website. You are then redirected to an 'Update and Confirm Details' screen requesting more information to be verified. The fraudsters will now be in a position to access your banking profile.

Social media scams - beware of fraudsters pretending to represent FNB or RB Jacobs on social media channels such as Facebook, Twitter, LinkedIn, WhatsApp or any other social media platform. We will never ask for your credit or cheque card, account number, online banking login details or password or One Time PIN (OTP) on social media platforms. FNB's official social media accounts are @FNBSA and @RBJacobs on Twitter and FNBSA on Facebook. The official accounts also display a blue tick indicating that they are verified.

Change of banking details scam - you will receive an email that pretends to come from one of your suppliers asking you to update your banking details. Beware of this even if it is on the supplier's letterhead.

Contact your supplier on the number that you already have for them and not the one on the fraudulent letter. Speak to someone you know at the supplier to confirm the change in banking details.

Copy of payment notification scam - you will receive an email requesting you to open a copy of your payment notification. Fraudsters will prompt you to login via the email attachment.

When you open the attachment in the email, you will be redirected to a fake FNB website. In an attempt to steal your banking details you will be requested to login. As soon as you enter your login details on the screen, you are redirected to a successfully logged out screen. The fraudsters will now be in a position to access your banking profile.

419 scams - this is communication by e-mail to a recipient making an offer that would result in a large pay off for the recipient. The details vary and large amounts of money are usually involved. Invariably, the victims' banking details as well as sums of money are said to be required in advance in order to facilitate the payment of the funds. Essentially, the promised money transfer never happens and in addition the fraudsters may use the victims' banking details to withdraw money for themselves.

Vishing and smishing scams - this is phishing, but instead of being lured to a fake website via email, you receive a call or SMS, where the individual pretends to be from the bank or other companies and gets you to disclose personal information such as your ID number, address, account number, username, login details, password and PIN. This information can also be used to gain unauthorised access to your banking account online.

OTP Email Fraud - using various methods of phishing, criminals also try to get access to your email accounts, commonly Gmail, Yahoo, etc. They produce fake login sites that look like Gmail or Yahoo. Once they have your email username and password, they have access to your emails (statements, personal communications) and this helps a criminal to build a social profile of you. Criminals can also intercept One Time Pins (OTPs) that are sent to emails once they have access to your email account.

OTP SIM Swop Fraud - once criminals are in possession of your username and password, they can easily access your accounts on Online Banking. They can also contact your service provider to do a Sim Swop which basically means that they hijack your sim and have access to your SMS. This also gives them access to your One Time Pin (OTP).

The bank will never ask for your username, password or PIN in an email, SMS, social media or phone call. Never select a link to our website that was sent via email. Always type in FNB's web address.

FNB has recently released Smart inContact on the FNB Banking App 5.0 which prevents OTP fraud by delivering an Online Banking transaction confirmation to your verified banking app. You confirm the transaction on the FNB App. FNB will not send OTPs to your cellphone, but instead to your verified FNB App. To verify your FNB Banking App, simply login to Online Banking from your regular computer, click Online Banking Settings - then My Devices and verify your app.

Tips to stay safe:

  • Never click on links in emails. FNB will never ask you to click on a link
  • If someone calls and pretends to be from a reputable company, be wary if they start asking for information that is personal. Rather, hang up and call the company on any of its official numbers to verify the call.
  • Your username and password for banking, email and other websites should always be different.
  • Regularly change passwords and PIN numbers.
  • Download or Update the FNB Banking App and verify your device to receive Smart inContact to approve Online Banking transactions.

For more information contact:
FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za or 087 335 8277

Uptick in consumers banking outside normal banking hours


Johannesburg; 15 February 2017 - FNB is seeing rapid growth in the number of consumers that are doing their banking outside the normal banking hours due to the convenience of Automated Deposit Tellers (ADTs) which do not require users to go inside the branch.

ADTs are self-help terminals that allow consumers to conduct a number of transactions without having to go into the branch.

"The growing ADT usage trend points to consumers' comfort levels in using ADTs as a multipurpose channel. As a result all FNB branches are now equipped with ADT machines in line with the bank's strategy to migrate customers to self-service electronic channels. Education remains central to our migration strategy; we invested a significant amount of time in educating customers about ADT functionalities," says Lee-Anne van Zyl, CEO of FNB Points of Presence.

"This will allow in-branch service consultants to process more complex transactions and decrease the amount of time each customer spends queuing inside the branch," she adds.

FNB reveals that between August and November 2016, it saw a five-fold increase in the number of bank statements printed via ADTs across nearly 1 700 FNB ADT devices spread across South Africa. In addition, customers use ADTs for cash deposits, prepaid purchases such as airtime and electricity. Other functions include PIN changes, daily withdrawal limit adjustments, card cancellations, sending money and making inter-account transfers.

The devices also cater for cardless deposits which allow banked or non-banked consumers to make cash deposits without a card being present, driving transactional volumes on electronic devices.

"It's becoming increasingly important to allow consumers access to banking services beyond the usual banking hours. We believe that the trend of using self-service platforms will continue to grow and banks will have to cater for the needs of the modern-day customers," concludes Van Zyl.

For more information contact:
FNB Corporate Communications
Dumezulu Shiburi: dumi.shiburi@fnb.co.za or 087 328 0990

Contactless 'tap' payments soar as users and merchants adapt to the new technology


13th March 2017 - FNB Credit Card has seen a sharp increase of 270% over the last six months in 'tap' payment transactions as users and merchants adapt to contactless payment technology.

While the number of contactless transactions by customers averaged 1.5 'taps' per month in May 2015, they climbed to an average of 2.5 per customer by January 2017. Significantly, the number of customers using the technology has risen sharply by 227% in the last six months.

"Contactless payments create a convenient and secure payment environment for both customer and merchant," says Gareth Rimmington, head of operations at FNB Credit Card.

"The current perception is that contactless payments are for small 'on-the-go' amounts, but in reality the tap functionality is available for high value amounts and the customer would merely have to enter their card pin to verify for larger amounts. However, some retailers may have their own limits.

"The adoption of new payment technology is almost always accompanied by a degree of scepticism but this is where customer education plays an important role to ensure there is a level of comfort," adds Rimmington.

All credit and debit cards issued by FNB are now contactless 'tap' enabled, meaning that customers are able to securely pay for their goods at merchants without the card leaving their hands. The bank started issuing contactless enabled cards in May 2015 and already has over 1 million in the market.

Security features include encryption technology which protects the card's contactless data from reproduction as well as the fact that customers are required to input their PIN after a number of 'taps'.

"For merchants, contactless 'tap' payments make a big difference in terms of queuing time as payments are faster. Contactless 'tap' payments are finding wide adoption both nationally and internationally, so we can expect the payment space to continue to evolve rapidly as new technologies are developed," concludes Rimmington.

For more information contact:
Chloe Hackland: chackland@fnb.co.za or 087 311 9124

The cost of bread, dairy, eggs and maize after the drought


07 March 2017: The agricultural sector has survived the worst of the drought that gripped South Africa in the past three years. The recent rains have however positioned the sector favourably in parts of the country.

Paul Makube, Senior Agricultural Economist at FNB Business takes a look at how the drought and subsequent recovery has impacted four basic breakfast foods, namely; eggs, maize, dairy and bread.

Dairy:
This industry has seen pastures improving, thereby reducing the frequency for the need for irrigation which translates to lower electricity costs. In addition, supply outlook for grain crops has improved and the subsequent decline in prices from the second half of 2017 indicates a reduction in food manufacturing cost is eminent.

Producer prices are expected to approach the long-term average share of approximately 37% of the retail prices. "We should see stable to firmer demand with new marketing strategies to reach more consumers in the country, the rebound in the industry following a devastating drought looks positive", explains Makube.

Eggs:
The egg market is stable and producer prices remain at profitable levels. Prices at consumer level have also remained relatively stable with a steady increase on an average of 6% year on year in January 2017.

"We've seen a lot of suppliers enter the eggs market which has increased supplies and placed profitability under pressure. Nonetheless, producers do have an option to reduce their stocks by shortening the lifecycles of their layer hens. The improved grain production outlook bodes well for feed prices, as feeding margins improve towards mid-year" adds Makube.

Bread:
According to statistics issued by the Agbiz, South Africa's total bread production grew by 12% year-on-year (y/y) in December 2016 to a total of 182 million loaves. The growth came from brown bread, it moved up from 82 million loaves in January to 90 million loaves. In fact, from October to December 2016, brown bread production was consistently higher than white bread. Prices of loaves of white and brown bread (700g) increased by 14% and 13% y/y at R13.60 and R12.28 respectively. The price of a loaf of white bread however slowed in January 2017, finishing up 11% y/y while that of brown bread was up 13% y/y.

Maize:
The price of the staple food, white maize, has for the first time in 2017 fallen below R2 000 per ton currently trading at R1 917/ ton, an advantage for food inflation which has remained sticky at double digit levels of 11.8% y/y in January 2017. The latest production estimates indicates a harvest of 13.9 million tons of total maize with the white variety up by almost 144% y/y at 8.3 million tons.

"While this is the first production estimate and is likely to change as the season progresses, our view is that it is likely to improve given the good production conditions. However, the excessive moisture if rains persist coupled with early frost for some areas may result in a slight downward revision to the current crop estimate in the months ahead" cautions Makube.

"The continued fall in maize prices on a year-on-year basis is expected to begin to filter through into the feed prices. Maize is a major input cost component, and a reduction in prices effectively means we will see feed prices begin to slowly stabilise. Agriculture is not out of the woods yet, but it is on its way out of the red and back into the black", concludes Makube.

A look at global economic impact on local SMME's


01 March 2017 - The global economy has become ever more complex and consequently, fragile and susceptible to financial and economic uncertainty.

The 21st century has seen the fastest growth in human advancement in just about every sector, the World Wide Web is 25 years old, and the internet itself is just 45 years old. The corner store is fast evaporating and global trends now have a direct impact on the local SMME.

On a local level, SMMEs account for over 90% of formalised businesses; they also provide employment to more than half the country's labour force with an estimated 34% contribution to South Africa's GDP. This makes the SME sector very important in resolving the high unemployment in the country. Leaders in this sector of society must be quick to act and flexible enough to adapt to the ever changing economic environments if we are to achieve the goals set out in governments National Development Plan.

Here are some key global insights that will have an impact on business and entrepreneurs:

Geopolitical change - China continues to move towards being a world leader economically and politically. The US, UK and the EU are struggling with their own domestic, economic and political issues. It has therefore become clear that there is a definite impact on businesses especially in emerging markets such as South Africa.

Exports and imports of businesses trading internationally will be affected due to the impact on the Rand. There would be a need for local businesses to be responsive.

Globalisation - China was very vocal about its support for globalisation at this year's World Economic Forum in Davos. An increase in globalisation usually has a negative impact for small open economies. This puts added pressure on local businesses and upcoming entrepreneurs, as a result of increased competition. For small businesses to compete, that would mean that they find means of generating additional capital, which might be already difficult given strict lending requirements.

Inclusive Growth - The concept of inclusive growth talks to the benefit of all citizens in an economy. The easing of current regulations is one way in which to achieve inclusive growth, creating more opportunities for entrepreneurs.

Education is important in terms of upskilling the workforce, improving entrepreneurial skill by means of accessible and affordable business incubations, as well as incorporating entrepreneurship in the schooling system - this all drives inclusive growth.

Fourth Industrial Revolution - there is ongoing talk about the Fourth Industrial Revolution (the fast moving rate of Artificial Intelligence (AI)) and the positive or negative impact it could have on human capital. McKinsey's prediction is that approximately half of the current jobs could be replaced by robots by 2055.

Given that a significant amount of job creation is expected from small business, there needs to be an understanding, on how to have a solid balance between increasing employment for the South African economy, the use of technology in business and our readiness to become more automated.

Buying your first home in 2017


23 January 2017 - Buying your first home is very exciting and if 2017 is the year in which you plan to make this leap, ensure that you have done as much research as possible to make a good choice from both a financial and personal point of view.

"There are many factors that need to be taken into account when buying your first house which don't only include the actual costs that come with a home," says Albertus van Staden, head of credit for FNB Housing Finance.

It is imperative to have a grasp of the bigger picture when it comes to buying a home. Factors such as what is happening in the property market, the interest rates as well as in your own life. Understanding these aspects could make a big difference to whether your first home is a boom or bust.

What is happening in the property market?
According to the FNB House Price Index, the property market is currently stagnant with an increase of a mere 3% expected over this year in nominal value, although there are signs that the economy is improving.

"While you may not have paid much attention to the expected house price growth, this is something to take note of, because if house prices are stagnant it will take much longer for you to recuperate the full amount, this includes which includes the costs related to the transaction should you decide to sell for any reason," says van Staden.

For example, if your home cost R600 000 you would have paid around R29 000 in transfer, bond costs and initiation fees. If you want to sell within a year you will likely be left with a shortfall assuming little in the way of house price growth.

If the property market only grows by the 3% and you sell at the end of the year, you are still left with a shortfall of R11 000. This is before you have even added the costs to cancel the bond and estate agent commission for helping you sell your property.

What is happening in the general economy?
Taking note of what is going on in the South African economy is important, as interest rates, inflation as well as expectations of the job market may have a direct impact on your home buying aspirations.

"Other expected changes, such as those in food prices or the cost of petrol can all have an impact on your pocket and affordability," says van Staden. "So stress test your budget, which means assume that the cost of living will go up and see if you can still afford to pay the basics and your house cost."

It is also important to have understood which industries are battling in 2017.

"If you are in an industry that is predicted to struggle in 2017, or is currently struggling, you need to be aware that you may not receive a bonus or salary increase, this will squeeze your disposal income," says van Staden. "In extreme cases there may be the chance of retrenchment, so ensure that you have enough of a financial buffer for a period of say around three months."

Be aware of your own personal circumstances?
The most important factors to take into account when buying your first home is where you are in your own life stage.

You need to ask yourself questions such as why are you buying a home, is it for investment purposes, security for you and your family and how long do you intend to stay? If you plan on living in your property for a long period of time, is it big enough should you want to start a family or want to upgrade later?

"Buying a home is a long financial and personal commitment," cautions van Staden. "You need to be sure that you are in a space to be a home owner, because, if you take the example above, you will see that you don't make money in the short-term."

This means:

  • Being in a good place financially; having a strong reserve of cash for a deposit and to show the bank you are able to save.
  • Having a good budget in place which also takes into account any external increases throughout the year such as rates and taxes, food or petrol prices.
  • Being settled - not planning a move for at least a few years
  • Having financial discipline to pay for the bond as well as all the additional costs that comes with being home owners such as rates and taxes.

"Owing your very own home is a great ambition. If you are financially and personally solid, you will be in a good place to buy your first home this year," concludes van Staden.

FNB discontinues safe custody storage in its branches


Johannesburg, 9 March 2017: FNB has taken a decision to discontinue the provision of safe custody storage in branches that offer the service. The decision follows the bank's regular review of service offerings to align with its business strategy, as well as the assessment of the product's sustainability.

With immediate effect, FNB will not accept any new safe custody applications from existing or new customers.

FNB will be notifying impacted individual and business customers to make arrangements to collect their safe custody valuables from the branches in which they are stored. While customers are advised to make collection arrangements by 1 June 2017 , the bank will give customers until 30 June 2017 to complete all collections.

While FNB will make all reasonable attempts to contact every affected customer through the contact details they have supplied, a customer that may have not received the sms, telephone call and official letter can also contact their respective branch to make collection arrangements.

Individual and business customers that have access to private bankers and relationship managers will also receive assistance via these dedicated channels.

In the interim, the bank reminds customers that it is necessary to take out suitable insurance cover for all valuables held in safe custody in accordance with the terms and conditions of the service.

FNB's decision to cease the safe custody storage service enables the bank to focus on continuously improving customer experience through its range of services. The bank remains committed to providing an unparalleled customer experience.

Mistakes to avoid when insuring your spouse


23 January 2017 - Consumers who make that important financial decision to take out life insurance on their spouses should first consult their partners to avoid making costly mistakes.

Lee Bromfield, CEO of FNB Life says insuring the life of your spouse involves more than just getting a policy as every committed relationship and marriage is different and has a unique set of financial needs and obligations.

"Before embarking on this exercise, couples should first reach mutual understanding on the type of life cover, amount insured, provision for children or dependents, beneficiaries, as well as their broader financial responsibilities, to ensure that they are adequately protected in the unfortunate event that one of them falls ill or passes away," says Bromfield.

He advises couples considering taking this important financial step to avoid making the following mistakes:

Not getting your partner's consent
Get your partner's consent before starting the process as this improves transparency and removes the element of surprise when one partner gets a call from a provider to finalise the take up process.

Not being clear on what you both want
Couples predominantly take out life insurance for two main reasons, one is to protect assets and the other is to safeguard their financial future.

"It's important to be on the same page about what to cover and for how much. This is also an opportunity to agree on who you both want as beneficiaries, even beyond just the two of you," he says.

Reluctance to seek financial advice
In some cases, couples may want to consider using the services of a financial adviser to get the real picture of their financial situation.

"Professional advice is very useful when a couple does not agree or are simply not sure about what to insure and for how much. An adviser could be helpful as they would look at the finances of both partners and make recommendations on how to take up the most suitable type of insurance," he adds.

Not keeping each other informed of any changes
Even though you may have consulted or informed your partner before taking out a policy, you still need to keep one another informed about important policy changes.

"The last thing you want as a spouse is to assume that you are still your partner's sole beneficiary only to find out that's no longer the case," concludes Bromfield.

For more information contact:
FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za or 087 335 8277

High unemployment highlights need to invest in SMEs


15 February 2017 - The latest Quarterly Labour Force statistics put unemployment at over 26.5%, highlighting the desperate need for both government and private sector to prioritise investment into building up entrepreneurial ventures that will drive job creation.

According to Mags Ponnan, Head of Customer Value Propositions at FNB Business; SMEs need to be a greater focus area for growth, if we are to decrease the unemployment numbers.

* A number of statistics estimate that SMEs account for over 90% of formalised businesses; they also provide employment to more than half the country's labour force with an estimated 34% contribution to South Africa's GDP.

"We have seen the impact of low growth projections affecting many sectors resulting in many industries shedding jobs; our approach to job creation needs to be far more creative as we cannot continue to rely on established industries to absorb the unemployed. Establishing and investing into scalable startups is a worthwhile plan for lessening unemployment," adds Ponnan.

He explains that the goal with a focus on SME's must be far more than just providing funding and incubation, resources should be focused on actively developing SME's that are starting to or are in the process of scaling up. Usually these SME's are expanding their staff compliment, growing their geographical footprint or by re-inventing their product offering in order to tap into a new market, thereby increasing their customer base - in each instance, there is a direct impact on job creation.

Government has put SMEs at the heart of the country's growth strategy as packaged in the Nine-Point Plan to help create the much needed jobs and has increased the support for black industrialists. Improvement in the implementation of these government measures, with assistance from the private sector and a balanced approach to the selection of SMEs that have potential, is where the magic lives.

"South Africa is capable of reaching well over the current growth rate; however, this will not be brought about by a focus on traditional industries as many of these have reached their maturity stage. Decreasing unemployment will take a solid partnership from the private sector and the government to create and manage acceleration programs that have a greater focus on supporting scalable small to medium enterprises with a view to create sustainable entities," concludes Ponnan.

What is the latest buzz in Franchising?


07 February 2017 - Much has been said about the slothful state of the economy and have echoed sentiments that 2017 is not going to be a walk in the park. The franchising sector has however found its way through the slow economy with industries such as the fast food segment showing positive growth in 2016.

That said, franchising in South Africa is still not fully realising its true growth potential and franchises need to continue to plan ahead, innovate and adapt to changing market conditions to ensure that they stay abreast of the changing business environment.

"The splendour of franchising is that you're in business for yourself but not by yourself, however, one has to let go of the myth that franchising brings instant success. It is a safer type of business because it is part of an established brand: the risk nevertheless is not necessarily lower," says Morne Cronje, Head of Franchising at FNB Business.

He shares some of his views on what to monitor in the franchising sector:

Effects of the current economy on franchising - A slowing economy creates opportunities and we will see new niche concepts entering the market. We will also see existing concepts refocusing on their core business making sure their Franchise network is profitable. Franchisors looking to expand their network will tend to grant a second or multiple units to existing franchisees that have proven that they can make a success of their franchise, than taking a risk with a new franchisee.

Segments that are performing in franchising South Africa is increasingly becoming the destination of global franchise concepts especially in the food chain franchisors. Many global brands are expanding into South Africa. This increased competition is very good news for the sector. Competition will create more market awareness, improved service, quality and price.

The automotive sector is an interesting sector to observe with new car sales remaining depressed as cash strapped consumers continue to opt to keep their cars, as a result the pre-owned car sales market is on the increase. We are also most likely to see growth in concepts that sell tyres; spare parts, batteries and non-structural vehicle repairs as consumers look to stretch their Rand.

We have also noticed growth in hardware franchises, which we link to a growing DIY culture in the country.

Challenges franchisees will face - As with any other business, the ultimate litmus test for a business is cash flow - so the age old business advice remains, manage your money proactively.

You need to seriously consider the effect that interest rates will have on the cost of running the business. In most cases, a franchisee needs to put up a 50% unencumber owners capital investment, the other 50% is normally financed, its repayment will be impacted by the interest rate as it will be linked to the prime lending rate - ensure that this has been accounted for.

A really important consideration in franchising is the proposed minimum rates of wages that government is moving to put in as law. It will no doubt affect budgets and will have a direct impact on cash flow.

Franchisee should be actively involved in their businesses - Franchising must be treated like an active investment. The franchisee must be 100% dedicated to the business - do not leave it to managers to run the business. If you as the franchisee are invested in the franchise, you can ensure that costs are managed; cash flow is managed; and most importantly you can plan ahead.

Cronje emphasises that the days of buying into the right brand and expecting automatic success are long gone. "We need to raise the profile of the industry and ensure economic growth in the country for decades to come and the best way to achieve this is to always plan ahead in a competitive landscape."

How to use tax free benefits to ease possible rise in tax


Johannesburg; 19 February 2017 - Consumers are encouraged to use tax free savings vehicles to ease the possibility of increased tax burden after 2017 National Budget Speech. Consumers have until 28 February 2017 to make use of their R30 000 maximum tax free allocation for the current tax year.

Aneesa Razack, CEO of FNB Share Investing says it's vital to make use of this window even if you do not use the full R30 000 maximum allocation.

"To use their tax-free benefits, consumers have an option to buy tax-free shares with a R30 000 maximum lump sum or make R300 monthly contributions to reach their annual allocation without paying any tax on returns or dividends on the investment. The tax-free benefit also puts you in a position to earn better compound interest over time."

Razack further cautions consumers not to rest on their laurels, noting that, "While 2017 is partly expected to be better than 2016, people should not leave their financial wellbeing to chance. One of the easiest ways to take charge of one's financial independence is to constantly boost your cash reserves."

For consumers who may be struggling to create financial room to start investing or saving, Razack recommends the following measures to get you started:

  • Review fixed and variable costs: Knowing your fixed and variable expenses will be a good start to your financial independence journey. Fixed expenses are things like your bond or vehicle loan.
  • Be honest with yourself: It's almost certain that not all your money goes to necessities, and if you are honest with yourself when looking at your finances, you stand a better chance of making progress.
  • Set financial goals: Once you have a good understanding of your finances, you need to set a goal and a realistic timeline to achieve that goal.
  • Consult an adviser: Financial advice is becoming a critical component for consumers who are serious about attaining financial independence. Using the services of a professional could be hugely beneficial.
  • Choose an investment product: Choose the right product for you. Many people tend to opt for cash platforms because that's what they are familiar with, but investing in shares or unit trusts is easy and convenient.

"We don't know what this year has in store for the South African economy but irrespective, it's always important to plan properly and have your financial destiny firmly in your hands," concludes Razack.

For more information contact:
FNB Corporate Communications
Dumezulu Shiburi: dumi.shiburi@fnb.co.za or 087 328 0990

Africa's strongest banking brand delivers solid results


We're proud to announce that FNB has received global recognition as one of the world's most powerful banking brands, ranked 4th in the banking category of Brand Finance's Brand Strength Index (BSI) for 2017.

According to Brand Finance, BSI analysis is based on marketing investment, brand equity (the goodwill accumulated with customers, staff and other stakeholders) and the impact of those on business performance.

Overview

  • Satisfactory overall profit growth, strong operational momentum and particularly pleasing performances from Premium and Business Segments.
  • Credit portfolio is well positioned on the back of appropriate risk cut backs and origination strategies. Good progress in further product and pricing re-configuration, particularly in lower Consumer Segment, led to Revenue impact.
  • Great strides in the e-race leaves FNB well placed to benefit from further digital transformation.
  • A perfect storm for a number of our operations in our Africa portfolio, but continued commitment and investment through the cycle in support of long-term diversified expansion strategy.

Johannesburg, 9 March - FNB SA returned a 6% increase in profits before tax underpinned by strong results from its Business and Premium segments. The bank saw good growth in deposits and continued traction in its save and invest strategies. Profits from the operations in the rest of Africa fell on the back of credit issues especially in Zambia and Mozambique due to difficult macro business conditions.

"We are pleased with the 6% growth in the overall domestic customer base, with some 12% growth in overall transactional volumes and especially with the pace at which our digital platforms continue being adopted with app volumes up a respectable 80% year-on-year," says FNB CEO Jacques Celliers.

FNB had standout performances in its Business and Premium Segments as a result of customer base growth and further entrenchment and share of wallet across the respective segments with Commercial producing a 16% increase in profits.

"A number of exciting product and pricing simplification initiatives have been rolled out during H1 in the lower end of our Consumer Segment offering to streamline our primary bank offering to that market which had a once-off negative impact to our non-interest revenue. But, by deliberately placing customers in simpler and more affordable product and pricing options and stepping up the manner in which we give access to banking services allows us to build stronger relationships for the future," adds Mr Celliers.

Growth in advances was deliberately slowed across all categories of lending in line with the bank's more conservative lending stance given the weaker macros with impairment results in line with expectations.

"Looking forward, we can see that improvements in the underlying economy and our vigorous efforts to contain costs for the bank will yield positive outcomes for our customers. We remain committed to our operations in the rest of Africa and to our start-up business in Ghana," concludes Mr Celliers.

For more information contact:
FNB Corporate Communications
Lwazi Stuurman: LStuurman@fnb.co.za or 087 312 5904

Notes to Editor
FNB accolades 2016 & 2017

  • *Ranked Africa's most powerful banking brand by Brand Finance® Banking 500 Report 2017
  • SA's Coolest Bank - Sunday Times Generation Next Survey 2012 - 2017
  • Sunday Times Top Brands Survey #1 Business Bank 2013 - 2016
  • Bank with the Strongest Reputation - 2015 and 2016 RepTrak™ Pulse Survey
  • Awarded most innovative MVNO in the 2015 and 2016 Telecoms.com Awards
  • Voted the best digital bank, internet banking site and mobile banking experience in South Africa by SAcsi Survey
  • 2016 and Columinate Internet Banking SITEisfaction Survey 2016
  • FNB has been awarded Best Islamic Banking Offering by Banker Africa at the Annual Southern African Banking Awards 2016
  • The FNB Banking App has been awarded the 2016 Best in Customer Experience Award at the international Bank Customer Experience (BCX) Summit in Chicago, USA
  • BASA (Business and Arts SA) Chairman's Premier Award 2016 for the FNB JoburgArtFair
  • FNB recognised as the Best Online Financial Services Platform 2016 in the PriceCheck Tech & e-Commerce Awards
  • Most Innovative Bank in Africa - 2016 African Fintech Awards
  • Lafferty Global Awards 2017 - Excellence in mobile banking, jointly awarded to FNB and Sterling Bank of Nigeria (press release 12 Dec 2016, awards ceremony January 2017)
  • Globally recognised as SA's best foreign exchange provider by Global Finance World's best FX Providers 2017

3 questions to ask your wealth advisor about tax


02 May 2017: As wealthy individuals continue analysing new tax changes for 2017, the focus is on understanding the long-term impact of the increase in the dividends tax rate from 15% to 20%, on their family businesses

Eric Enslin, CEO of FNB Private Wealth and RMB Private Bank, says "although wealth planning for business owners should not merely be based on tax considerations, the increased dividend withholding tax has a direct impact on estate planning, investments, as well as the overall growth and sustainability of wealth for future generations.

Enslin has identified key considerations that high-net worth families need to deliberate with their advisor pertaining to the increase in dividends tax, which came into effect on 22 February 2017:

How will family businesses navigate the Dividend Withholding Tax Policy?
It is crucial that family businesses have a carefully considered dividend policy, which will enable them to adapt to legislative and economic changes.

National Treasury commented, in the 2017 National Budget Speech, on transactions that have and are taking place to interpose companies amid existing tax structures, to circumvent the section 7C provisions of the Income Tax Act, this will result in the scope of the section 7C anti-avoidance measure being extended. We therefore wait for the draft tax legislation for more clarity in this regard. A more appropriate approach however, for a family business in these circumstances could be to rather re-invest within the existing group structure.

"Family businesses that opt to reinvest profits instead of paying dividends, as a form of cash flow to investors or shareholders, may benefit in the long-term, but such a decision will need to be based on the strategic vision and objectives of the business. This highlights the need for a transparent dividend policy, which will ensure that all shareholders are satisfied with the decision taken," explains Enslin.

How will this impact the business exit strategy?
Many wealthy families venture into business opportunities with the sole aim of selling the enterprise as an alternative way of building wealth. The structure of the business and the exit strategy will inevitably result in tax consequences. Well established family businesses need to consider capital and equity stakeholder expansion; as well as diversification, whilst taking the tax consequences, BEE and cash resources into account. The expansion plan and the new diversification strategy may also need to be considered with the exit strategy of the founders.

Are family business utilising the applicable Dividend Withholding Tax exemptions?
It is essential that a family works with their advisors to ensure that the dividends tax exemptions that are applicable to their businesses are being utilised. Whilst the tax burden for high-net worth families is broader than dividends tax, families that have carefully considered their long-term investment and wealth creation strategy, underpinned by relevant tax and compliance policies, can rely on this as a building block to assist them in attaining inter-generational wealth preservation.

"The on-going changes in tax legislation means that it is vital for high-net worth individuals and families to constantly review their legacy and wealth strategies, utilising the knowledge, expertise and guidance provided by their trusted wealth advisors," concludes Enslin.

For more information contact:
FNB Corporate Communications
Senzi Dlamini
Senzi.Dlamini@fnb.co.za or
087 335 8277

5 tips to get your home loan approved


17 May 2017: For many first-time buyers, the process of applying for a home loan can often be daunting as they wait eagerly for a positive response from their bank.

"Taking time to understand how banks assess home loan applications can go a long way to helping you increase the chances of getting approval," says Dr Simphiwe Madikizela, head of special projects at FNB Housing Finance.

He shares five tips to help consumers get their home applications approved without any delays:

  • Check the valuation of the property − before a home loan is approved, banks conduct their own valuation to ensure that the amount being borrowed is not far off from the market value of the property, in case the property has to be re-sold in the future.

FNB allows customers to proactively get a property and area report on the FNB App and online through Nav» Home, and compare this to the details provided by the seller or agent prior to the home loan application process.

  • Avoid taking on additional debt − many consumers mistakenly assume that banks only monitor their credit profles and perform updated affordability checks prior to the home loan approval process.

However, this process continues for at least three months until the property registration process ends. Therefore, taking on additional debt or defaulting against credit providers can result in the bank repricing and in extreme cases declining the loan altogether.

  • Saving up for a deposit − although banks occasionally grant 100% home loans, having a deposit demonstrates your ability to save and increases your chances of getting approval.
  • Get pre-approval − getting pre-approval ahead of your home loan application gives you peace of mind by knowing whether you qualify or not. Your bank will normally ask for your latest payslip, three months' bank statements, ID copy and proof of address for preapproval.
  • Checking your credit score − you are allowed to check your credit profile free of charge once a year and can also purchase reports for a minimal fee from the credit bureaus. A clean credit record is essential for getting a home loan with any financial institution.

"If you qualify financially and have met all the above requirements you are one step closer to getting approval and ultimately owning the house of your dreams," concludes Dr Madikizela.

For more information contact:
FNB Corporate Communications
Senzi Dlamini
Senzi.Dlamini@fnb.co.za or
087 335 8277

6 ways to stretch your electricity budget this winter


15 May 2017: Many cost conscious consumers who have converted to prepaid electricity to cut their energy bills, are still spending excessively in winter.

Shadrack Palmer, Chief Commercial Officer at FNB Service Provider says FNB customers spent on average 12% more on prepaid electricity purchases during the 2016 winter period than the period after. This was subsequent to a 9.4% average price increase in April 2016.

This year, the national energy regulator has approved a 2.2% average price increase which was implemented on 1 April 2017 for Eskom direct customers and will be effective from 1 July for municipalities.

Following on the increased usage trend during winter and the increased tariffs, Eunice Sibiya, Head of Consumer Education shares six tips on how consumers can lower their electricity bills this winter.

  • Lighting − always use energy efficient lights and avoid switching on lights in rooms that you aren't using at night.
  • Gas − consumers that use gas heaters and stoves can reduce their electricity bills substantially in winter.

Although converting to gas may require a large investment initially, consumers will save in the long term.

  • Geyser − the bulk of electricity in most households is consumed by geysers, especially in winter when it is much colder. Installing a geyser timer to manage consumption during peak times can help consumers to save.
  • Refrigerator − old freezers generally use more electricity than new ones as they work harder to maintain cool temperature. Consider servicing or replacing your old fridge to save on electricity costs.
  • Appliances on standby mode − appliances that are not completely switched off and remain on standby mode such as the TV, HiFi, decoder and microwave, collectively consume a lot of electricity at the end of the month.
  • Pool − cover your pool in winter when you are not using it as pool pumps and filters use a lot of electricity to keep it clean.

"With electricity costs continuing to increase, it has become imperative for consumers to continuously look for practical ways to reduce their consumption. Any form of saving can go a long a way in helping everyone cope in these tough times," concludes Sibiya.

FNB currently covers 65% of all local municipalities which have prepaid electricity services and includes coverage for all Eskom municipalities nationwide.

Don't overlook insuring your partner's parents


09 May 2017: Couples in long-term committed relationships often find themselves having to support their spouses financially when one of their in-laws who doesn't have adequate funeral insurance passes away.

Lee Bromfield, CEO of FNB Life, says "Even if you have funeral cover for your own parents, you may find yourself in a financial predicament if one of your uninsured inlaws passes away as your spouse may rely on you for emotional and financial support."

For consumers who are currently bearing the brunt of tough economic conditions, this can be a huge set back given that burial expenses will be paid out of pocket.

"When you are in a long-term relationship some financial responsibilities often have to be shared. As a result, taking out funeral cover for both in-laws should become a priority for couples," adds Bromfield.

He says many couples find themselves in financial difficulties even post the funeral due to additional costs such as a tombstone unveiling, which are absorbed from the family's budget and savings.

This is often followed by funeral expenses for extended family members who rely on one of the spouses for financial support.

"Some couples in this situation often have to approach loan sharks, take out personal loans and exhaust credit cards, which has a negative impact on their finances in the long term," says Bromfield.

He advises couples to take time planning and assessing both their financial responsibilities to avoid paying for costly unforeseen events such as the passing away of a relative.

Bromfield emphasises the importance of couples deciding together who should cover their parents and extended family as well as the amount of cover necessary to afford them a dignified send-off.

"A common mistake that spouses make when insuring in-laws and extended family is taking out multiple policies. It is more cost effective to combine policies than taking out cover with different insurers," he adds.

Couples shouldn't wait until their parents reach retirement age to take out funeral cover as premiums will be more expensive. Moreover, there is often a waiting period for new policies that has to be factored in.

"Dont let poor planning come between you and your partner's financial wellbeing," says Bromfeld.

FNB Life offers funeral cover policies up to R100 000 and up to 21 family members on a single plan.

For more information contact:
FNB Corporate Communications
Senzi Dlamini
Senzi.Dlamini@fnb.co.za or
087 335 8277

FNB adds the Samsung Galaxy S8 to its offering


04 May 2017: FNB today announced that its customers can now get hold of the highly anticipated Samsung Galaxy S8 and S8 Plus through its smart devices offering.

The devices will be available from Friday, 05 May.

The Samsung Galaxy S8 and S8 Plus are being offered at competitive rates of R629 and R719 per month, respectively for 24 months, with zero additional fees, interest or charges payable.

Kartik Mistry, Head of Smart Devices at FNB says, "We are excited to unveil the new Samsung Galaxy S8 with innovative features as part of our smart devices portfolio. We will continue to offer customers who are unable to purchase a device outright, or those who prefer to pay it off, more value and choice by giving them the option to access the latest technology at affordable rates over a reasonable period of time."

The Samsung S8 and S8 Plus come with a 5.80-inch and 6.20-inch touch screen display respectively and a resolution of 2960 by 1440 pixels. Both smartphones run on the Android 7 (Nougat) operating system and have 64 GB of internal storage.

Users will also benefit from enhanced security through the latest Samsung Knox feature as well as the opportunity to add features such as Samsung DeX, which allows users to connect their devices to a monitor, keyboard and mouse in order to browse the web and edit documents etc.

As an added value to customers, FNB is also giving away a free convertible wireless desk top charger, valued at R1299, with each smartphone as part of the deal.

"We take pride in always being close to our customers' needs and finding innovate ways to address them, while continuing to make smart devices affordable for South Africans who previously would not have been able to purchase them," concludes Mistry.

Customers can place orders through FNB Online Banking and can expect to receive their devices within five to seven working days.

There is limited stock available.

For more information contact:
FNB Corporate Communications
Senzi Dlamini
Senzi.Dlamini@fnb.co.za or
087 335 8277

The easiest way to save in currency and manage exchange rate volatility


08 May 2017: If you are planning an overseas trip at the end of the year, save in a foreign currency and secure the current exchange rate.

The FNB Global Account is an online South African domiciled foreign currency account deemed offshore and it offers you quick access to some of the world's most frequently traded currencies.

Anthony Grant, CEO of FNB Foreign Exchange, says, "When you travel overseas you will need foreign currency to meet your expenses and the amount required may fluctuate according to the level of the exchange rate. By saving in a Global Account you can start saving now in the currency of the country you are travelling to and in this way make it easier to build up enough currency to meet your travel expenses."

"This approach is practical because it cushions you against the fluctuation of the local currency by averaging the exchange rate over a period of time. This can protect you against sudden Rand weakness during the course of the year due to economic event risk."

Generally, when people travel they save money in a Rand denominated bank account; however, it's possible to put money aside in nine foreign currencies. In addition to this, travellers who have a Multi-currency Cash Passport™ can transfer funds from the Global Account and use the Cash Passport™ for making purchases and ATM withdrawals in USD, GBP, EUR, AUD while overseas.

"We note that travelers from South Africa are seeking greater global transactional ability. People work overseas, receive foreign investment income, make investments in many different markets and have families around the world. They expect to transact overseas with the same ease of transacting locally,"

"South African residents, over the age of 18 may avail an allowance of R1 million per calendar year for any legal purpose, which includes investments, without having to produce a Tax Clearance certificate. Foreign investment as a foreign capital allowance up to R10million per calendar year may also be invested offshore subject to a Tax Clearance Certificate issued by SARS," adds Grant.

"Before travelling overseas, conduct some research about the country you plan to visit and draw up an itinerary of the activities and allocate a budget against each activity. In this way you will be able to determine how much you need to save for your travel," concludes Grant.

For more information contact:
FNB Corporate Communications
Dumezulu Shiburi
Tel: 087 328 0990 or
Email: dumi.shiburi@fnb.co.za

Never stop investing because of volatility


15 May 2017: South Africa's recent downgrades by rating agencies may put off some people from continuing to invest. This should not be the case, the market goes through periods of volatility and that's never reason enough not to stay invested.

Aneesa Razack, CEO of FNB Share Investing, says "South African markets have gone through periods of volatility previously, most notably during the global financial meltdown of 2008 and the end "Dot Com Bubble" when markets dropped significantly. While the latest downgrades would be a cause for concern for local investors, this should not deter anyone from continuing to invest. Over the long term the market tends to slowly return to a growth trajectory by self-correcting. The worst any investor can do is to decide to pull out completely; nothing could be more regressive."

"While market volatility poses some risks, there are also investing opportunities that may be beneficial over the long term" she adds. To illustrate, from April 2009 to April 2017, the JSE All Share has grown by more than 160%, so if investors had pulled out their investments, they would have lost out on significant returns from the market.

Buy cheap
When the market suffers a downturn, some shares may be cheaper to buy, this not only means you can bolster your portfolio, it's also an opportunity for better growth prospects when the market recovers. Buying when the market is priced less provides an opportunity to buy into different sectors of the economy which, in essence, is a form of diversification and will allow you to spread your risk evenly.

Start investing
If you have never invested before this could be the ideal time to get started and step into the market. It may seem like to worst time to start investing but it's not, as long as you take a long term view. Remember that it's better to invest money that you won't need for at least three to five years to ensure you stay invested over the long-term; this is the only way value can be derived from investing. "Imagine someone who may have decided to invest some money back in 2008 when the market suffered the worst downturn, over the years they probably reaped some rewards as the market recovered," says Razack.

It's going to be a long ride
Whether you are a novice or experienced investor, remember that when the market turns volatile your will see your portfolio fluctuate. What is important is to avoid impulse decisions, as they can be costly. By selling when you see losses you are essentially selling cheap to the benefit of someone else. Rather hold on to your investments through the rough times.

"Investing goes hand in hand with risk, but inherent in the risk is also opportunity for wealth creation. The process of creating a sizeable investment portfolio takes time and requires some patience," adds Razack.

For more information contact:
FNB Corporate Communications
Dumezulu Shiburi
Tel: 087 328 0990 or
Email: dumi.shiburi@fnb.co.za

What to do if you get instant riches


03 May 2017: After receiving a financial windfall, such as an inheritance or lottery winnings, it's important to stop and think about what you want to do with your money. "Unexpectedly receiving large amounts of money can potentially change the course of your life, only if the money is used wisely.

It's important to understand that managing a large amount of money is not easy and the first instinct for most people is to spend, especially on big ticket items such as cars, holidays or expensive jewellery. While a bit of self-indulgence is acceptable, uncontrolled spending could lead to wastage. Therefore, it is important to seek help about how you can manage your money," says Ester Ochse, Channel Head for FNB Advisory.

"A sudden bulge in your bank account from an inheritance, for example, is hard for most people to fathom. They spend before committing to any sensible financial decision such as investing the money towards education," adds Ochse.

Ochse has the following tips for anyone who has been fortunate enough to receive large sums of money:

Pay debt
Tackle your debt as soon as possible, this could be the only opportunity to live a debt free life, and be able to direct your money on building more wealth. Once your debts are out of the way, keep it that way and resist the temptation to take up debt unnecessarily.

Think twice before quitting your job
Many people are tempted to quit their jobs when they receive large amounts of money. But quitting comes with limitations because you will lose your regular income and other worthy benefits offered by your company.

Seek financial advice
A windfall can fundamentally change your financial situation. You have to take into account your estate planning, lifestyle and your investment objectives. Therefore, it is recommended that you speak to a certified financial advisor who will assist with achieving your short and long-term goals.

For individuals who are already financially stable, see it as an opportunity to diversify your investment portfolio. This is where goal-based financial advice could help you tailor a plan that will help you realise your long-term financial aspirations.

Save for emergencies
Having an emergency plan to cover your living expenses due to unforeseen circumstances is important. If you didn't have one prior to receiving a windfall, now is the good time to start. Ideally, you should have enough money to cover six months living expenses. The savings must only be accessed in the event of serious need such as a medical emergency.

"Understanding the psychology of dealing with a lot of money can help you take the right steps to protect your money. Every financial decision must be carefully considered to avoid being in a compromising situation in future," concludes Ochse.

or more information contact:
FNB Corporate Communications
Dumezulu Shiburi
Tel: 087 328 0990 or
Email: dumi.shiburi@fnb.co.za

Is your life insurance enough to cover your family?


22 May 2017 - Many people that take out a life policy base the sum insured (maximum amount paid out for claims) on the amount of money that will be required to protect their dependants financially should they pass away.

"As your financial circumstances change, it becomes essential to review the sum insured as it may no longer be sufficient to cover the needs of your family or dependants," says Lee Bromfield, CEO of FNB Life.

"There are common situations that may lead people to update the amount of cover they are insured for," explains Bromfield:

  • Buying a new house - when taking out a home loan your financial institution may require that you have life insurance in place to cover the debt in the event that you pass away. Depending on the loan amount a portion of your life cover will be ceded against the home loan, leaving your dependants underinsured and out of pocket.
  • Children - one of the common reasons why people take out life insurance is to protect the financial future of their children. When you have a new child or the number of your dependants increases, it is important to ensure that your life insurance is adjusted to accommodate the changes.
  • Getting a higher paying job - if your financial situation improves, you should update your life cover amount accordingly to ensure your dependants maintain the same lifestyle should you pass away. For example, you could have moved into an affluent suburb and decided to take your kids to a high end private school.
  • Marriage - getting married and starting a family is a commitment that comes with a number of financial responsibilities. Updating your policy cover and including your partner as a beneficiary becomes essential, especially when you are married in community of property.
  • Health - if your health condition changes, you may have to consider updating your life cover amount, based on your age and individual circumstances. Furthermore, depending on the nature and severity of the illness you may have to claim from your insurer anyway. This would also give you an opportunity to review your policy and the sum insured.

"If you are unsure of the amount of life cover you need or whether it's the right time to update your policy, it is advisable to speak to your bank or financial services provider for guidance," concludes Bromfield.

For more information contact:

FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za
or 087 335 8277

Money mistakes wealthy people should avoid in marriage


30 May 2017 - High-net worth individuals who have made a commitment to marry their life partners should not overlook the importance of mutual understanding, trust, open and honest communication to grow and preserve their wealth.

Eric Enslin, CEO of FNB Private Wealth and RMB Private Bank, says "One of the attributes of successful wealth management is working together as a family towards a common goal. As a result, both partners should be intimately involved in their wealth journey in order to build a family focused wealth legacy that can be transferred to the next generation."

Having advised many families about wealth building, Enslin has noted a few common mistakes that high-net worth couples make.

  • Not consolidating wealth advisory - working with the same advisor who provides tailored services for the entire family has many advantages. Couples can save on advisory fees, consolidate financial commitments such as investments and bank accounts as well as benefit from wealth management advice that takes both their goals and aspirations into account.
  • Neglecting estate planning - a fundamental mistake that high-net worth couples make is taking estate planning for granted, leaving them vulnerable in the unfortunate event that one partner passes away. This poses a serious threat to the family's wealth if there isn't an updated will in place that provides certainty on issues related to debt, trust structure, personal and business assets.
  • Lack of transparency - it is often said that communication is one of the building blocks of a successful marriage; the same principle applies to wealth management. Couples should openly talk about money management issues and reach mutual understanding on investments, tax strategies, business decisions and challenges, as well as long-term wealth strategies.
  • Not sharing responsibilities - entrusting one partner to manage the entire family's financial affairs is a mistake that can lead to long-term ramifications. Both partners should be actively involved to be in a good position to pass on knowledge to their heirs.
  • Poor prenuptial agreement - an agreement should be reached upfront on how assets and income acquired prior to the marriage should be distributed in the event of a divorce. Failure to enter into a comprehensive prenuptial agreement can lead to a lengthy and costly legal battle.

"Growing and preserving wealth requires both partners to actively work together to hone and develop family values in order to build a lasting legacy. Moreover, getting the right wealth management advice that takes into account the whole family's needs is equally important," concludes Enslin.

For more information contact:

FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za
or 087 335 8277

Factors to consider when buying a second house


06 June 2017: Whether you are planning to buy a second house to generate passive income or looking for bigger space for your growing family, there are a few factors to consider to avoid turning your good intentions into a costly setback.

Tommy Nel, Head of Credit at FNB Home Loans, says owning a property or two could be a good step to start building wealth for households; however consumers who are taking this important financial decision should place emphasis on doing proper research to ensure they know what they are getting themselves into.

There are three common scenarios that second time home buyers often find themselves in; you are planning to buy on the condition that you first sell your existing house; you still owe your current bond and require a further loan or your bond is paid up and you are applying for a new home loan.

Nel unpacks some of the important factors that second time home buyers should consider:

Taking out a further loan - two home loans

When buying a second home, banks will perform a new credit and affordability assessment that meets the requirements of the National Credit Act (NCA). This will be based on your credit track record, household budget and ability to afford the minimum monthly repayments.

Managing your own household expenses and property related expenses on a second property, whilst repaying two loans may potentially leave you overextended, increasing the likelihood of not being able to keep up with your financial commitments as they fall due.

It is therefore important to know what you are letting yourself in for and perform the appropriate research in this regard:

  • Factor in costs such as insurance, municipal rates and taxes, levies, property maintenance and repairs.
  • Managing agents typically charge anything between 8-10% for managing a property.
  • It could be risky to assume you will have 100% occupation on a continuous basis.
  • The rental price needs to be competitive with other properties in the area. You cannot simply just take your bond installment, add other costs and expect to let your property for that amount. The market often dictates what you can charge.

Conditional offer, subject to the sale of your existing property

This clause stipulates that a purchaser who makes an offer on a house must be given enough time to first sell their existing home.

"However, in tough economic times many sellers are not willing to give up their option to accept offers from other buyers by waiting for one individual to first sell their home," says Nel.

Moreover, there's no guarantee that you will sell your home for its current market value. This could result in selling your property for less than its market value, unless you are patient and don't get carried away with your desire not to lose the property you are trying to acquire.

Paying up the first bond

This may not be a good idea from a tax perspective as you would be unlikely to claim your interest deductions against rental income. Instead, it could be more beneficial to use some of the equity in your primary residence to get the best possible rate on your investment property by putting down a sizable deposit.

"There are many reasons that may lead you to consider buying a second house, such as moving to a safer neighborhood, closer to work and good schools for your kids. Depending on your individual circumstances and affordability level, there are a range of home loan solutions that banks can offer you as a second time home buyer. It is therefore essential to seek expert advice and choose a financing solution that best suits your needs," concludes Nel.

For more information contact:

FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za
or 087 335 8277

Don't overlook the benefits of checking your bank statement


23 May 2017 : Consumers who only focus on what is coming and going out of their accounts are missing out of the benefits of the financial data available in their bank statements.

"Bank statements are not just a great way of keeping a record of all your transactions every month, this is also the perfect starting point when planning a financially stable future," says Ryan Prozesky, CEO of FNB Value Banking Solutions.

He unpacks four benefits of keeping tabs on your bank statement:

Keep on top of your budget

"If you have no idea of what is coming in or out of your bank account, there is no way you are able to budget effectively. In fact, your bank statement is the perfect place to start budgeting, if you don't have one in place, or aren't the best at keeping on top of it," says Prozesky.

Highlight unnecessary spending

By going through your bank statements line by line you will soon see the small charges that may be completely unnecessary.

"This can be in the form of an old policy you have no use for or a subscription," says Prozesky. "The quicker you get on top of this, the sooner you will be able to start saving, you will be surprised how these small items add up quickly."

Unnecessary spending doesn't have to be only small items. Sometimes it is a few hundred rand or even more.

"Looking back at your bank statement, you have to be honest with yourself about which of the larger purchases, such as electronics or purchases at clothing stores, you really make use of," says Prozesky.

"Cutting down on big spending can put you in a far stronger position financially to build up your savings or put the money to real work."

Understanding bank fees

This is a good opportunity to also get to grips with any banking fees that you may not understand.

"You will soon note avoidable high fee transactions such as drawing cash or making transactions in branch," says Prozesky. "Once you are aware of these line items you can substitute them for low or no costs transactions, such as swiping your debit card instead of withdrawing or using electronic transactions."

Keeping you honest

Make a date with your bank statement every month and your finances will soon fall into place.

Recently FNB also made statement functionality available on the FNB App, allowing customers to search statements, select their own "Start" and "End" date and enter email addresses for statements to be delivered to. Customers can also print their statements at over 900 ATMs with deposit devices.

"It is fairly easy to bury your head in the sand when it comes to finances, however since the bank is required to record every single cent in your bank statement, it is very difficult to hide away from the reality of your finances. Consider signing up for email statements, which don't attract a charge," concludes Prozesky.

For more information contact:

FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za
or 087 335 8277

Tips to help you prevent card fraud


05 June 2017 : Card payments are a safe and convenient way to pay for goods and services, however, consumers must still be vigilant when using or managing their bank cards in order to protect themselves against fraudsters.

Chris Labuschagne, CEO of FNB Credit Card says, "Bank cards have many security features which are designed to minimise fraud while improving convenience, but card safety is a two way street that requires consumers to exercise caution to avoid falling victim to fraudulent activities."

Labuschagne recommends the following protective measures against card fraud:

Take note of card safety measures recommended by your bank

There is a lot of misinformation about how people can prevent card fraud but it is always best to follow your bank's recommendations on card safety, in addition to conventional ways of safekeeping your valuables.

"Do not listen to anyone who suggests using reckless measures that could damage the quality and functionality of your card. Bank cards are designed to perform specific tasks and contain a lot of security detail which may not be visible to the naked eye, therefore tempering with it could cause irreparable damage," says Labuschagne.

Do not keep your card together with your PIN

This is one of the golden rules of card safety but it is often ignored, because people cannot anticipate losing their bag or wallet which tends to store such valuables. Rather be safe than sorry and memorise your PIN instead of writing it on a piece of paper or saving it on your phone. FNB offers a View Pin Facility on our banking app so you can easily and securely view your pin.

Immediately report stolen and/or lost cards

According to SABRIC, lost and/or stolen cards accounted for 56.2% of card fraud losses during 2016.

Labuschagne says while this may be due to a number of reasons, it is yet another reminder that people need to immediately report lost or stolen cards to prevent any losses. He says FNB customers can immediately cancel their cards using the bank's App, phone the contact centre or visit their nearest branches.

Take advantage of contactless payments

The introduction of new payment technologies such as contactless payments give consumers far more control over their bank cards, meaning you don't have to part ways with your card when making payments at merchants that accept contactless payments.

Labuschagne says all you have to do is to look out for the contactless sign and simply tap without handing over your card. Not only is this quicker but it also gives the cardholder peace of mind.

"At FNB, we are currently issuing 100% contactless cards for new customers as well as existing customers who may need a replacement card. We're seeing a growing number of customers who prefer to use contactless payments in line with international trends."

Be vigilant when purchasing online

When buying goods and services online, it is important to ensure that you are dealing with a reputable service provider before sharing your card details. Do not simply click on the first link you come across, rather type the web address of the service provider you intend to use.

"Card payments offer a lot of benefits for consumers and far outweigh the risk and expenses associated with handling cash. Over the years, we have seen a sustainable rise in the number of consumers who prefer to use their bank cards to pay for goods and services. However, the need to prioritise safety should not be neglected," concludes Labuschagne.

For more information contact:

FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za
or 087 335 8277

Current challenges faced by new franchisees


06 June 2017 : As the South African economy continues to navigate economic challenges; the knock-on effect on consumers is one of the main issues keeping new franchisees awake at night.

Morne Cronje, Head of Franchising at FNB Business says "despite the resilience of the franchising sector which contributes almost 12% to South Africa's GDP; and generated a projected R493-billion turnover in 2016; new franchisees are cautiously observing the economic headwinds and their anticipated impact on profit margins."

Cronje shares some key challenges faced by new franchisees:

Managing cash flow : The slowdown on the economy is making it very challenging for new franchisees to remain profitable - this means they need to adapt to this tough economic climate by managing their cash flow efficiently, because it plays a critical part on the health of a business. Furthermore, they also need to build a closer relationship with their financial institutions; this will improve their working capital and also carry themthrough the tough economic times.

Electricity costs : Prioritise and invest in electricity efficient products and machinery early on in the businesses; this will save you a lot of time and money in the long run.

The rising cost of rental space : Always keep in mind that rental costs go up on a yearly basis, when doing budgets factor in the probabilities that the rent will increase.

Staff costs : Having less money coming into a business simply means little profit margins which implies keeping fewer employees in the business to sustain it. Hire fewer employees in tough times and increase your staff compliment as the business grows and economy improves.

Not having suitable skills - New franchisees often get anxious that they don't have the necessary skills to operate the business successfully. They can eradicate this anxiety by looking for mentorship and guidance from an experienced franchisee.

"Given the unpredictability of the current economic climate, the sector still has room to grow despite the shrinking of disposable income for many consumers. Franchising has a wide range of supporting structures that can be used by new franchisees. Use these structures effectively and there will be no need to stay awake at night," concludes Morne.

FNB unveils FNBy and FNB Fusion Premier Accounts


2017/18 account pricing changes announced

FNB continues to deliver on its promise to offer customers better banking value and convenience through the launch of its 'FNBy' youth offering and 'FNB Fusion' Premier Account which combines a transactional account and credit facility with a linked credit card.

These new offerings come into effect on 1 July 2017 simultaneously with the bank's annual account pricing changes.

CEO of FNB Premium and Business Core Banking, Yashen Singh, says "Our latest packages provide simplicity, convenience and increased value for money while encouraging the use of our efficient electronic and digital banking platforms that help customers take full control of their accounts and earn eBucks rewards. The new offerings and current fee structures are consistent with the unique and ever changing needs of our customers."

Younger customers below the age of 18 now have access to a fully transactional account, with no monthly fee, that can be used for their daily banking and savings needs. Youngsters from the ages of 18 to 25 years will pay R10 per month with free access to inContact, online and cellphone banking through the FNBy account.

FNB Fusion Premier which attracts a monthly fee of R199 per month will enable customers to manage all their transactions and maximise rewards with only one card, which combines the best of what a fully transactional account, overdraft facility and credit card can offer. FNB Fusion not only offers convenience, but peace of mind when it comes to managing a bank account. For example, customers will be able to use their salaries or incomes to repay the outstanding balance on their accounts, thereby avoiding the risk of revolving their credit card balances.

FNB's Premier and Private Clients Bundle Monthly Account fees remain unchanged at R199 and R365 respectively, with customers continuing to benefit from a single discounted fee for a portfolio of products which includes their Cheque Account, Credit Card, Savings Account and Global Account.

Private Clients and Wealth customers on the Bundled Pricing Option will have access to the share trading platform and also benefit from the Money Market Maximiser which offers competitive interest rates.

"In reviewing our customer's needs, we have set out to create enhanced banking accounts across a range of fee structures from the entry Easy accounts to our Gold Cheque Account. We are further encouraging customers to select banking accounts that offer them the best value and range of services for their needs," says Ryan Prozesky, CEO of FNB Value Banking Solutions.

The account fee for the FNB Easy Pay-as-you-use (PAYU) Account which has remained unchanged since July 2014 now increases by 6% to R5.25 per month, the FNB Easy Bundle Account which has remained unchanged since July 2012 now increases by 8% to R53 per month, while the mid-level FNB Gold Account fee which has also remained unchanged since July 2014 increases by 5% to R105 per month.

"Retail banking has become increasingly competitive and when reviewing our competitors in detail, we see that a race to the lowest price-point ends up costing the consumer more as many additional services are required," adds Prozesky.

FNB's entry level Easy PAYU (Pay As You Use) account will have additional fees for services such as inContact (FNB's transaction notification service) via SMS at 40c per SMS, Cash@Till (cash withdrawn at till-point) at R1.40. However, customers can still receive free inContact notifications via the FNB Banking App.

Customers on Easy PAYU still enjoy free card swipes, free linked account transfers and scheduled transfers, internal debit orders, free subscription to FNB's electronic channels, free statements and balance enquiries via FNB Cellphone banking, free FNB Connect pre-paid purchases, as well as Shoprite and Checkers coupons on the FNB Banking App. Customers with modest transaction requirements will continue to find that FNB's PAYU at R5.25 per month offers a cost efficient way to bank and gain access to FNB's banking infrastructure.

The Easy Bundle account at R53 per month now offers a combination of free FNB ATM/Slimline, Cash@Till and cardless cash withdrawals to the value of R3000 per month, which would have cost over R55 on Easy PAYU. This means customers can choose any of these channels to withdraw their monthly cash requirements without paying fees up to the free limit of R3000 monthly.

"Many of our customers understand their cash needs as opposed to requiring a fixed number of ATM transactions per month. Moreover, money is safer in their bank accounts and can be accessed at their convenience, instead of the risk of withdrawing and carrying larger amounts once per week," adds Prozesky.

Customers on the Easy Bundle also receive free cash deposits up to the value of R3000 per month at any FNB ATM with cash deposits, which would have cost R27 on Easy PAYU. 10 free electronic transactions including debit orders, account payments and transfers are included in the monthly fee along with free inContact notifications.

For many customers the additional value offered by the Easy Bundle account makes this a lower cost and higher value bank account than a PAYU account where additional services are charged per transaction.

"Our Gold Cheque Account offers a broad range of inclusive services and exceeds the features offered by many of our competitors. The Gold Cheque Account offers unlimited electronic transactions including prepaid purchases, account payments and transfers, debit orders and free inContact notifications. Customers are able to withdraw up to R5000 per month free of charge via any FNB ATM, Slimline, cardless cash services as well as at tillpoint (Cash@Till). Customers also receive free cash deposits up to the value of R5000 per month at any FNB ATM with cash deposits. FNB continues to offer free subscriptions to eBucks rewards, FNB's leading rewards programme.

For more information contact:

FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za
or 087 335 8277

How to trim down SME running costs


19 June 2017 : Operating costs associated with running a business may be challenging to deal with due to the current economic woes. SME's need to develop long term strategies to ensure they can stretch each rand whilst saving where they can.

"The state of the economy is not great, consumers are hard pressed and businesses are feeling the impact with less spend going around. SME's in particular, have to be smart about how they manage the flow of their income and expenses. Businesses can achieve this by reducing on their spend and finding new and innovative ways to execute on tasks without breaking the bank" says Mags Ponnan, Head of the Business Incubator and Customer Value Propositions at FNB Business.

Ponnan shares a few guidelines on saving tips for SME's:

Start with a wastage audit - Many businesses do not have a full view of their total expenditure. A basic wastage audit will assist in pointing out how much a business spends across the board. It is important for the entrepreneur to track the speed at which his costs will grow in relation to his business turnover and ensure that it stays within an acceptable margin. Common areas where a business is bound to save money is with the likes of stationary, cost of water and lights, cost of conference calling and travelling to meetings and telephone costs. Decreasing these costs can result in significant savings for the SME.

Review business insurance - ensure sufficient cover at the right cost for the business by shopping round and ensuring that you review your insurance annually to make certain that you are sufficiently covered at an affordable levy.

Digitize - taking services online reduces costs as it reduces the amount of people required to complete the task. With the rise of the internet, businesses now have a plethora of options that are easily accessible at an affordable price to the business, thereby assisting in bringing down the businesses' running costs and gaining greater footprint by providing easier access to entrepreneurs across a wider geographical area.

Employ professionals - employing professionals ensures that tasks are completed on time and are done efficiently. Quite often, business owners hire people that are good at many things with the flawed thinking that they are reducing costs, when in fact; the cost of adjusting mistakes and reviewing work from a staff complement that isn't skilled may be more expensive. If you cannot afford to pay the salary of highly skilled professionals, many businesses also offer company shares to the employees to incentivise them for the lower salaries paid

Talk to your business banker - In most cases, businesses have a range of products that can assist a business save money or bank at preferential interest rates. Banks also understand that businesses are feeling the strain in the current economic environment.

Take advantage of tax benefits - Educate yourself on the tax landscape of South Africa since the government has made the empowerment of SME's core to their planning; there are many tax benefits for SME's at various levels of annual revenues scales.

"Business in the coming months will not be smooth sailing. Ensure that you talk to your banker about what products they may have that will better enable you to save money, invest or simply improve your business's cash flow. Effectively, a focus on running a lean and effective business is a great way of ensuring you keep your business afloat this year," concludes Ponnan.

Postcards from NAMPO 2017


An outlook on the agricultural sector

12 June 2017 : NAMPO is the biggest agricultural event in the Southern Hemisphere. It attracts major players and decision makers into one proverbial room, to engage on the health of the agricultural sector in South Africa - this year; NAMPO came at a time when the industry is posed for record harvests.

"The sector is on course for recovery after the devastating 2015/16 production season, however, the Western Cape (WC) and parts of the Eastern Cape (EC) are exceptions as conditions there have deteriorated with water levels in dams falling way below 20% full. Despite this, NAMPO provided some key insights into the sector" says Paul Makube, Senior Agricultural Economist for FNB Business.

Makube provides an outlook of the sector post NAMPO

Positive growth in harvest - According to the recent Crop Estimate Committee (CEC) report, South Africa's potential harvest of grain and oilseed crops for 2016/17 jumped 7% from the previous month to 18.03 million tons in May 2017. The maize crop has been revised higher by 7.54% from last month to a record 15.63 million tons. The rebound in maize production will help reduce pressure in the livestock industries such as poultry, pork and feedlots where it constitutes almost 70% of the feed.

Maize prices stabilize - Maize prices have responded to this improved supply dynamics and weakened, they are currently trending below the R2, 000/t level for both white and yellow maize. Both the yellow and white maize prices have edged below export parity, around R1, 800/t and R1, 900/t respectively.

Positive knock on effect on animal feed - In the case of oilseeds, both the sunflower and soybean crops are expected to be up on last year at 853,470 tons and 1.23 million tons respectively. These two crops are used as plant protein sources in animal feed in the form of soymeal and sunflower meal. Further processing for consumer products such as sunflower oil, soybean oil, etc. will improve availability and subsequently lower prices.

Pressures on wheat market - Poor production conditions affected planting in the Western Cape; however, the short term rainfall outlook has improved with heavy rains expected this week. The Free State and North West will however offset the potential loss in production because, apart from the Western Cape, the water table and dam levels have improved significantly this season.

Growth in livestock - The livestock market remains on an upward trajectory with gains across the board due to tight supply as a result of herd rebuilding in the case of beef and sheep. The meat-to-maize ratios have improved significantly in the past few months because of the combination of higher meat and lower maize prices, an indication of improved profitability for feedlots, poultry and pork production systems. "The strong rebound in agricultural output bodes well for inflation going forward and consumers will breathe a sigh of relief as most grain and horticulture products and byproducts should decline in price. This should assist the SARB to keep interest rates on hold for a bit longer" concludes Makube.

Do you really get what you need from your bank?


29 May 2017 - Do you really get what you need from your bank? This is the critical question that every South African who holds a bank account should attempt to answer in order to determine whether they get the best value from their bank, says Firoze Bhorat, Head of FNB Retail Marketing.

"Banking is an important part of our daily lives and one of the key enablers to financial stability. Therefore, it's vital to choose a banking partner that gives you maximum value and more importantly, you should make a distinction between what you get and what you need from a bank," he says.

Digital technology continues to redefine how financial services institutions interact and cater for the daily banking needs of their customers in an easy, efficient and convenient way. Whether it's earning meaningful rewards, banking securely on the best banking App, increasing your credit card limit, instantly reporting fraud and cancelling a stolen card, buying your first property or simply getting an individualised interest rate, consumers want services that address their needs, at their fingertips.

Over the years, Retail banking has increasingly become highly competitive and as the cost of living in South Africa continues to creep higher, some consumers may be tempted to simply go for the cheapest option. However, Bhorat cautions against making banking decisions on price alone, as this could have unintended consequences for your pocket.

"In some cases, you might find that while the account fee seems cheaper, other individual transactional fees start taking their toll on your budget. This is one of the primary reasons we encourage customers to consider a bundle offering which allows them a number of free benefits with complete transparency on account fees," he adds.

To ensure that you switch to a bank that gives you value aligned to your needs, you first have to define what you want and then review whether your current bank meets your needs. It's important to choose a bank that enables your lifestyle, with adequate tools to manage your money.

You also have to look at whether their value added services such as rewards offer any real value at all. If they fall short on your expectations, you may want to consider switching because compromising on value could have serious limitations for your financial future.

"As a trusted money manager, FNB understands that customers want more than just a bank account and we take it upon ourselves to give expert advice on lifelong financial decisions - whether it's investing, insurance or estate planning, we want to help customers shape their financial legacy," says Bhorat.

While most people do think of switching banks when they don't get such services, there's also a perception that moving from one bank to another can be a rigorous and costly exercise, especially if you have debit orders coming off your bank account. "The main consideration is whether you want to settle for value-less banking or switch to a bank that will give you maximum value. At FNB, we have made the process of helping customers switch their bank accounts to us a lot easier. We have a dedicated team that helps you move your account and all your debit orders, and we have found that helping customers through this process takes away the angst associated with switching banks," concludes Bhorat.

For more information contact:

FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za
or 087 335 8277

Top 5 tips to achieve financial independence


08 June 2017 : There are no short cuts to attaining financial independence; it requires discipline and limitation of wasteful spending, especially on nonessential items.

Ester Ochse, Channel Head of FNB Financial Advisory, says "Financial independence is the ability to live a financially independent life that neither relies solely on debt as a form of survival or living expenses. The main reason most people grapple with the concept of financial independence is because of a lack of discipline. The National Savings Rate shows that South Africans prefer to spend rather than save and people over extend themselves in as far as credit is concerned."

"There's no truth in the belief that you can only achieve financial independence when you are wealthy, it all depends on developing good money management skills."

In order to see the full worth of your money, you must manage whatever little you have prudently on a consistent basis. Achieving financial independence is an ongoing process; it's a behaviour pattern that must be practiced consistently.

Here are some tips for achieving financial freedom:

Avoid using debt to fund your lifestyle
Never use debt to fund your lifestyle; the use of credit to fund a particular lifestyle will only move you backwards. Only fall on debt when you absolutely have to and also make sure you understand the impact of the debt on your finances over the long-term. Make both medium and long-term commitments to rid yourself of debt.

Cut expenses
Conduct a careful analysis of where most of your money is spent and you may notice there are expenditures that are unnecessary and can be removed from your list. This is all about gauging what's important enough for you to spend your money on. If you are spending money on things that have no direct benefit to your financial wellness then you will never realise financial freedom.

Save and Invest
Start a savings and investment plan that will cater for your financial needs both over the short and long term. By putting money aside you are letting your money work for you instead of just spending it compulsively.

Examine your financial decisions carefully
Before making any financial commitments look at your financial situation holistically, for example, instead of buying something you really want on credit, rather save for it. Remember that if interest rates increase you may end up paying more to settle that debt. It's better to save for the items you want to buy, it's delayed gratification but much cheaper.

Remain consistent


Staying financially independent is an ongoing process, even after you have realised your goal of financial freedom, you need to ensure it stays that way. Ensure that you stay abreast with economic conditions and how they affect you personally. Your financial needs will change according to your life stage; ensure that your finances are also modelled according to the stage of your life.

"A mind-set change is the first step, you must change the way you perceive money and what you aim to achieve with whatever amount you earn," adds Ochse.

For more information contact:

FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za
or 087 335 8277

BrandsEye Takes Top Honours at FNB Business Innovation Awards


09 June 2017 : Craig Raw, (Founder) and Jean-Pierre Kloppers (CEO) at BrandsEye were announced as the overall winner of the 2017 FNB Business Innovation Awards held in partnership with Endeavor South Africa.

"It's a fantastic feeling, to be chosen as a winner among 12 amazing businesses, BrandsEye has been around for over 10 years, in that time we have done some really great work that has allowed us to continuously improve the technology that we use. Winning this means we get to take a step further in globalising our offering" said Raw.

"I think what is special about BrandsEye is that we understand what public opinion is, on a very wide scale, we are mining social media for public views that are not available in any other forum. No one else is doing that" added Kloppers.

BrandsEye will be sponsored by FNB to attend the Endeavor International Selection Panel (ISP) to be held in New York, USA this September. The FNB Business Innovation Awards began in 2015 with a need to recognise and celebrate creativity, outstanding business innovation and those that push beyond the limits to develop scalable businesses that can compete globally.

"The finalists all demonstrate the talent South Africa has in producing high-impact entities that are not only innovative, but have scalable business models that make them globally competitive. South Africa's best chance at solving the unemployment epidemic is investing in scalable businesses" said Mike Vacy-Lyle, CEO FNB Business.

Catherine Townshend, Managing Director of Endeavor South Africa added, "the partnership with FNB gives BrandsEye access to the Endeavor ISP, an opportunity to engage with a network of leading international luminaries and high-impact peer groups. Endeavor offers founders entry to international markets and access to networks that can help them scale".

The FNB Business Innovation Awards are dedicated to furthering the growth of innovative, globally scalable South African businesses - all the finalists chosen display this potential.

The selection criteria this year was as follows:

  • Business must exhibit high growth potential.
  • Business must demonstrate capacity to create high-value jobs.
  • Business must demonstrate real innovation that has the potential to change the way an industry operates locally and/or abroad.
  • Founder is interested in accepting advice and support from FNB and Endeavor as well as contribute to the Endeavor network.

For a complete list of the finalists, judges, and background on the competition, please visit www.fnbbusinessinnovationawards.co.za.

Background about:

BrandsEye:
Widely regarded as the world's only accurate opinion mining company, BrandsEye use a proprietary mix of search algorithms, crowd-sourcing and machine learning to mine data from online conversation for sentiment and the underlying topics. Through their unique opinion mining of social media, they were able to accurately call both Brexit and Trump's victory - proving that meaningful, predictive insights can be gained from online conversation. The company's mission is to help clients make insightful decisions informed by accurate and meaningful social, online, print and broadcast data.

Endeavor South Africa:
Endeavor is leading the high-impact entrepreneurship movement around the world. Endeavor partners with high-impact entrepreneurs who are transforming customer behaviour, industries, regions and countries; those with the biggest dreams and most scalable businesses. Their unique offering enables entrepreneurs to break through barriers, allowing them to build thriving companies, create thousands of jobs, and become role models for future pioneers.

Endeavor International Selection Panel (ISP)
The International Selection Panel (ISP) is the culmination of a rigorous multi-step selection process. At the ISP, top international business leaders interview candidates about their businesses and high-impact potential, and then vote on whether or not candidates become Endeavor Entrepreneurs.

Home loan application is approved - what next?


19 June 2017 - Once you've found your ideal property, made an offer and gotten your home loan application approved by the bank, the most crucial step to follow is registering and moving into your dream house.

Dr Simphiwe Madikizela, Head of Special Projects at FNB Housing Finance, says "On average the property registration process takes about three months or more to complete, which can often be frustrating for first time buyers. Therefore, being informed will help you meet most of the requirements upfront, making the registration process and experience as seamless as possible."

He explains what buyers should expect during the registration process:

Home Loan quote - the bank will send you a quotation which you should read and understand. Once you are satisfied with the agreement, sign the documents and send them back as soon as possible.

Life Insurance - you may be required to have adequate life insurance or a mortgage protection plan that will be ceded onto the home loan to cover the outstanding amount in the unfortunate event that you pass away. This ensures that your home loan balance is paid off, to prevent your loved ones from facing financial difficulties.

Attorney's fees - in order for the registration process to proceed, the bank and the seller appoint bond registration and transferring attorneys, respectively. Each of these attorneys will charge fees which need to be paid by the buyer upfront. For example, bond registration on a R700 000 home loan approximately costs R22 000 while transfer fees will amount to R16 000.

Signing of documents - bond registration and transferring attorneys will invite you to their offices to sign a couple of documents. You will be required to provide your original ID document, proof of residence, income tax number on a SARS letterhead and proof of your banking details.

Moving arrangements - you shouldn't wait until the property is registered to make moving arrangements. Not only is a move costly if unplanned for, but you will also have to start paying your home loan instalment on the first month after registration. Also take into account your current lease agreement if you are renting, as you may have to pay a cancellation fee and give the property owner 30 days notice.

"It is advisable to cooperate with all parties involved in the registration of the bond to avoid unnecessary delays. If there's anything you don't understand speak to your Home Loans consultant for clarity" concludes Madikizela.

FNB has developed a tool, nav» Home to assist prospective home owners to find their dream home, get preapproved in minutes and acquire knowledge about the home buying and registration process.

Questions to ask when taking out a funeral policy


12 June 2017: The last thing you should worry about when grieving the loss of a loved one is reading up on the terms and conditions of your funeral policy to try and understand the circumstances that would have led to your claim being delayed.

"Asking your insurer the right questions upfront can give you peace of mind knowing that you can effortlessly claim when you need cover the most," says Lee Bromfield, CEO of FNB Life.

Many consumers only place emphasis on the cost of their monthly premiums and the lump sums that will be paid out in the event of death, and mistakenly ignore important detail in their policies.

Bromfield advises consumers to ask these important questions when taking up cover:

  • Who qualifies as a nominated beneficiary - it has to be an individual who is 18 years or older and cannot be a company, business, charity or trust. Some insurers may also require the beneficiary to be a spouse or family member.
  • What if the nominated beneficiary passes away - it will be important to update your policy immediately and nominate a new beneficiary. If the nominated beneficiary is no longer around or has passed away, the benefits would be paid into your estate.
  • Does the policy have a waiting period - there's often no waiting period for accidental death. However, for natural death and suicide, the waiting period for most insurers is 6 and 24 months, respectively.
  • Can I add my new born child to the policy - newborn children should be added three months before their birth in order to be covered immediately. Alternatively, the normal six month waiting period will apply.
  • What if I skip a payment due to financial distress - your insurer will collect a double premium the following month. If collection fails for the second time, the policy will lapse.
  • How do I claim - some insurers require the claimant to submit a certified claim form, notice of death form, death certificate and a copy of their ID.

"Following the submission of a notice of death form, FNB Life obtains or verifies death certificates through the National Population Register from the Department of Home Affairs and this improves the speed at which beneficiaries are paid out for valid funeral insurance claims," says Bromfield.

  • Will my policy lapse if I pass away - if a spouse was insured under the same plan they will be given an option to continue with the policy as the new principal member.

"Although getting funeral cover is essential to safeguard you against unforeseen burial expenses, it is equally important to carefully read, understand and seek clarity about your policy from your insurer to avoid unpleasant surprises in the unfortunate event of death," concludes Bromfield.

Are your kids ready for their inheritance?


21 June 2017 - One of the challenges wealthy individuals face in their lifetime is ensuring that their kids are ready to inherit and sustain wealth for future generations.

Eric Enslin, CEO of FNB Private Wealth and RMB Private Bank, says the responsibility that comes with inheriting wealth and leading the family to grow and preserve it can easily overwhelm anyone that isn't adequately prepared.

"High-net worth individuals shouldn't wait until their kids finish school to start teaching them about the principles of wealth management. A solid foundation of good money management should be instilled at a very young age and gradually developed as the kids grow up," says Enslin.

He has identified key factors that wealthy individuals should consider to ensure that their kids are ready for their inheritance:

  • Communication - having an open communication rule with kids about the financial affairs of the family leads to better understanding and trust. However, sensitive information should be withheld until heirs are mature enough to handle it.
  • Professional advice - solely taking on the responsibility to equip your kids with all the skills and tools necessary to manage wealth is not recommended.

"Professional assistance can be beneficial and we are seeing this at FNB Private Wealth and RMB Private Bank where there is an increase in high-net worth clients who have started utilising our wealth and legacy management services for the education of their kids," says Enslin.

  • Family values and vision - growing and sustaining generational wealth becomes a challenge if family goals and values conflict. It is essential that the family shares the same vision and values about the management of money. Heirs should understand these principles and be able to pass them on to future generations.
  • Financial responsibility - heirs should be acquainted with the principle of sound financial management early in life. Parents can encourage this by giving kids monthly allowances, incentives for outstanding performance and encourage saving toward long-term objectives.
  • Estate planning - talking to heirs about estate planning helps them know what to expect in the unfortunate event that you pass away. This is also an opportunity to expand more on their inheritance and critical decisions you have taken.

"Equipping kids with the necessary wealth management skills at an early age places them in a better position to succeed at managing and preserving the legacy left behind," concludes Enslin.

Money mistakes the youth must avoid


Johannesburg; 14 June 2017: Young people should make wise financial decisions early in life to ensure they are not impacted by financial missteps committed in youth.

Eunice Sibiya, Head of Consumer Education at FNB, says "There's nothing as exciting as getting your first salary and realising that earning an income opens up many possibilities. However, this should also be the time to step back and start thinking carefully about your finances and what you want to achieve from earning an income. During this stage, every financial commitment should be carefully considered because how you start off will have a direct impact on your finances in the long term."

"It's quite common to see young people getting excited about earning money and then begin to take on too much debt to accumulate possession they often don't need, without having made provision for savings," adds Sibiya.

Here are some of the common financial mistakes that young people must avoid:

Not Budgeting
By creating a budget, you will be able to plan your expenses and keep an eye on what your money is spent on. A budget can help identify any wasteful spending because it's designed to help you track your expenses and ultimately commit money to areas that take priority. Discipline is important but there's no harm in making room for entertainment now and then to reward yourself for hard work later.

Taking too much debt
When you suddenly have access to credit, it may be difficult resisting the temptation to just spend, but remember that debt is a major financial commitment; therefore it's better to take on debt that you can manage and not feel overburdened. By taking on too much debt you may find yourself not being able to cope with repayments. It's better to focus on saving money and earning interest on it instead of unnecessary debt.

Not having an emergency fund
An emergency fund is designed to cover shortfalls when an unexpected expense occurs. A medical emergency or a car breaking down can have a huge impact on your finances and if you don't have funds for unplanned expenses you may end up relying on debt or having to tap into your other savings.

Delaying saving for retirement
The best time to start saving for retirement is when you are still young because any delay might cost you more in the long-term. While you might think there's enough time to save for retirement, it's always better to save as soon as you start earning an income. Starting early will most likely help you make building blocks towards a comfortable retirement, ensuring that you benefit from compound interest and keeping in line with the depreciating value of money.

"The road to financial freedom comes with selfawareness and financial discipline. Arm yourself with as much information as possible before making any financial decisions, in this way you avoid making mistakes that can possibly compromise your finances in future," concludes Sibiya.

5 things to consider before switching banks


Johannesburg; 13 June 2017 - Before switching banks, take a step back and conduct an assessment of your finances to determine if a particular type of account will match your financial goals.

Khathu Ramoliko, CEO of FNB Gold says some of the common reasons for switching banks include bank charges, credit or a loan, but you do get people who have been with the same bank since they were students and don't see the need to switch.

He says being with the same bank for many years doesn't guarantee that you are getting best banking value. "Loyalty is only good if it equates to value", he explains. "In all likelihood, you could be missing out on more generous rewards, better customer service, superior digital banking experience, and many other benefits suited to your lifestyle."

Khathu says, while value means different things to different people, there are key considerations to getting what you want:

  • Define your needs or financial aspirations - Whether it's getting a bank account that gives you more control of your money or the one that gives you access to a range of other services such as investments, insurance or savings - choose a bank that addresses your needs.
  • Focus on getting value for money - Don't chase the cheapest bank account because you may end up compromising on value. If it's sold as cheap you need to ask yourself what the catch is. Rather ask what value you get and at what price.
  • Take a closer look at value added services - It's a lot easier to extract value if you know what to do to get it. Most banks have some form of rewards or incentives but not all these offer real value to you, many have lots of confusing rules and also charge you a fee. FNB Gold customers earn free eBucks Rewards up to 40% for using the banking App to conduct their usual transactions.
  • Has the bank kept up with technological advances - The benefit of technology is that it makes banking safer, convenient and even cheaper. Being able to change or view your PIN, temporarily block or cancel your card or buy prepaid products via a banking app doesn't just save you money, it also saves you time. You want to be with a bank that is constantly investing in technology and has the best banking app with proven capabilities that allow you to do as much as possible from wherever you are.
  • If unhappy, explore your options - People often assume that switching a bank account is a very difficult process but banks such as FNB can help you switch your bank account, salary and debit orders through a dedicated account switching team to ensure a smooth transition.

"Banking should be about you and your needs. We all have different paths in life and our individual circumstances are vastly different. At FNB, we are continuously investigating ways to ensure that we remain in touch with the needs of our customers, not as a group but as individuals. As money managers, our role is to ensure that customers have the right tools, secure banking platforms and guidance to make financial decisions that will improve their lives," concludes Khathu.

Principles of a successful scale up


01 June 2017: South Africa sits with various challenges that affect our economy. The real solution to the country's unemployment is scalable entrepreneurship i.e. new businesses starting and growing rapidly ultimately creating sustainable employment - these are not survivalist or life style businesses.

The disciplines of successful scale-ups create a positive systemic impact - it encourages a focused approach aimed at proactively managing a business through its growth path. "Lessons from global gurus on the science of scaling up present us with key disciplines, the rigorous application of which enhances the odds of success" says Mike Vacy-Lyle, CEO FNB Business.

He adds "that over 50% of the top 1% of businesses get stuck at a common point on their growth path. This point of "stuckness" does not manifest as a temporary circumstance which simply corrects itself over time or with a mediocre level of effort. The consequences of many businesses' inability to navigate out of "stuckness" are grim. Avoiding getting stuck altogether or finding an escape route requires significant effort and skill from the business leadership".

Vacy-Lyle shares some of the principles businesses can adopt to help steer them to the next level of their growth path.

Focus - A lack of focus results in a lack of progress in most circumstances. It is important that businesses don't over commit themselves and to carve out time to apply sufficient focus on areas that require it. The road of business growth is littered with businesses that failed by entering new business lines, markets or committed cash flow on acquisitions. It is important to not only use turnover growth as a measure of business success.

Manage execution - Build a culture and management system to execute. Execution becomes exponentially harder as the business headcount grows. Make sure you have clear roles for people and proper accountabilities.

Build an A-team - Attract and retain talented people and help them thrive. Not all critical start-up team members will succeed in senior roles in a large and growing organisation. EQ is always more important than IQ.

Harness your Board - Many entrepreneurs are resistant to the idea of a Board, yet research shows that all successful scale-ups have built and maximised the use of a Board. Strong scale-up leaders know the limitations of having fewer decision makers that are deep in the detail and biased by short term pressures.

Systematise customer delight - Scale requires shifting from operations as a series of projects, to operations as a set of systems and processes. The business processes need to be built around and supportive of consistently delivering great customer experiences. Measure and reward customer service and not just sales growth.

Manage money militantly - Decisions that are not informed by accurate financial insight and businesses cases are expensive. It is important to build a robust financial function that is able to generate such insight. The returns on investing into sound financial systems and resources are high. You need a disciplined monthly management account reporting process and an organisation that is lead by well thought through businesses cases.

Be investable - Wealth comes through scale, and scale generally requires capital at some point. Capital comes on its own terms- learn the rules and language of investors and make the business attractive to investment.

Bring your A-game - Leadership needs to consistently perform at a high level and remain aware of less obvious detractors from peak performance such as insufficient rest, an unhealthy lifestyle and high stress levels. Most successful entrepreneurs have a lifestyle interest that keeps them energised.

Choose success - Leaders in a business need to operate with a mindset which seeks success for the business and which makes decisions prioritising the business needs over personal views.

"Scale ups require a focused mindset backed by a series of measured decisions and efforts to ensure that a business continues to grow - think big" concludes Vacy- Lyle.

5 habits that stop you from building your savings


Johannesburg; 22 June 2017: The extent to which a person is able to save depends largely on their attitude towards money and not how much they earn.

Ester Ochse, Product Specialist at FNB Advisory, says "Some people don't earn much but are able to build a solid savings base, and the reason for this is simple - they understand the impact savings can have on their finances. On the other hand there are people who earn more but are not able to save and this habit can be attributed to a number of reasons."

Here are some habits that impede people from building savings:

Not having realistic financial goals
Having goals is crucial for your financial well-being, but you must be realistic about what you want to achieve. For example, if you earn R5000 a month, it may be unrealistic to aim to save 100% of your income every month if you solely depend on it, but it's certainly possible to commit to saving 10% or more, especially if you are financially disciplined. If you have unrealistic savings goals it will be hard to maintain momentum and very soon you will be overwhelmed and ultimately give up. Set realistic goals that are closely aligned to your personal financial circumstances.

Delaying savings
Never delay saving because you are waiting for the day when you will have enough money to save, that day may never come. The solution to this is to start small and build your savings slowly over time and once you have eveloped a savings habit you can build better omentum from there. The biggest excuse that people make is that they don't have enough to save; you can start saving from as little at R100 a month.

Spending more than you earn
Simply put, this means living beyond your means. In other words you are spending way more than you earn and are most likely using debt to fund additional expenses that may be unnecessary. The rule here is simple; spend carefully and on items that you can afford. Spending more than you earn traps you in a cycle of debt and even if you are managing to save you will never meet your goals because some of your money will be directed towards servicing debt.

Ignoring wastage
Conduct an assessment of your expenses to see where your money is being spent and if you are getting any future benefits from what you are spending on. For example, you may have to relook your cell phone contract to see if you are getting your money's worth, by taking a closer look at certain expenses you may realise that there are leakages that can be stopped. By paying close attention to what you spend you will notice that over the long-term you have prevented wasteful spending.

Not having the right savings tool
Spend some time researching different types of savings vehicles that are suited to you and can help you meet your goals over a set period of time. The type of account you choose as a platform for saving is a big financial decision and should be given due consideration. The first step is to understand your risk appetite and match this with your goals before deciding where you want to save.

"The reason most people are unable to save is because they spend first and leave nothing towards savings. This only means they have no safety net to tap into in case of an emergency. With the South African economy showing no signs of immediately revival, consumers can no longer afford to only rely on debt," concludes Ochse.

What happens when you pass away without a will?


Johannesburg: 20 June 2017 - When a person passes on without a Will, they forfeit the privilege of deciding what should happen to their estate and the estate gets allocated in terms of pre-determined legislated guidelines, known as Intestate Succession. In other words, that person has no say in how the estate should be apportioned.

Vijay Morarjee, CEO of FNB Fiduciary, says "Having a Will in place should from part of broader legacy and financial planning, with specific focus on the estate planning piece. Evidently, this is a subject most people avoid because it involves death. However, not having a Will can be traumatic on the family; in some instances quite expensive. A worrying indicator is that a large number of South Africans pass on without a Will in place; this means they have no say on their estate. If a person dies without a Will, prescribed rules take over and operate through a set of legal guidelines on the deceased's behalf as to how the estate will be divided" says Morarjee.

As mentioned, the rules of Intestate Succession come into effect in cases where a will was not left to guide the distribution of the estate; here are a few of the scenarios that could unfold:

  • If the deceased is married in community of property, the deceased's spouse will receive half of the joint estate plus R250,000 or a child's portion, whichever is greater. The child's portion is calculated by dividing the remainder of the estate by the number of children and the number of spouses.
  • In the event that there is no surviving spouse, the estate is divided between the children of the deceased. If one of the deceased's children predeceased him/her, then the children of the predeceased's child (the deceased's grandchildren) will inherit that child's portion.
  • In the event that the deceased passes away in the absence of a spouse or children, the estate is divided equally between the parents of the deceased.

In all scenarios mentioned above, the Master of the High Court will nominate a person to administer the estate. Being an executor is an extremely important function and one may only hand pick their executor if a valid Will exists.

In addition, and in the absence of clear directives that can only be made in a Will, all inheritances for minors (person below the age of 18) will be placed in the Guardian Fund. The Guardians fund is administered by the Master of the High Court. Funds may only be accessed by the minor for specific limited purposes and the Master has implemented stringent requirements and processes in this regard to prevent abuse and fraud.

"It's important to get expert advice when formulating a Will as there are various legal implications if the estate is not planned, provided for, and executed properly. At FNB Fiduciary we understand that a Will is probably the most important document you will ever sign and that if properly crafted, it ensures that the assets are divided according to the wishes of the deceased; thereby fulfilling the aspirations that were cherished for the next generation." adds Morarjee.

Is fixing your home loan interest rate ideal?


July 2017 - Following the South African Reserve Bank's move to keep interest rates at the same level, coupled with the notion that the bank may have reached the peak of its hiking cycle; home owners will probably be reluctant to fix their home loan interest rates.

"Although there's a good chance that interest rates may have peaked; consumers still need to tread with caution due to possible risks of further downgrades to our sovereign credit ratings. Therefore, home owners may find current fixed interest rates on offer quite generous and it could provide some good protection to borrowers who want peace of mind knowing that their Home Loans repayments will remain unchanged for a period of up to five years into the future," says Tommy Nel, Head of Credit at FNB Home Loans.

On the other hand, consumers currently feeling the pinch shouldn't view fixing interest rates as a way of saving money, but rather as a personal cashflow management option.

"When taking up fixed rates it is important not to try and time or beat the market. It should be more of a risk based decision to try and protect your home as one of the most important assets you may own," advises Nel.

Consumers must also be aware that fixing interest rates could result in them missing out on savings if the Reserve Bank decides to embark on an interest rate reduction cycle.

"However, you shouldn't beat yourself up about getting such a call wrong if it serves to mitigate the risk of not being able to pay your bond if rates increased," says Nel.

Fixing rates may also be ideal for individuals who own multiple properties and use the stable rates as a strategy to cushion against future hikes, which would severely impact their cash flow.

Given economic uncertainty and unpredictable interest rates, Nel advises consumers who aren't sure whether to fix rates or not, to rather try and get a favourable interest rate from their bank when applying for a home loan:

  • Reducing the banks' risk - lenders often take a risk based approach when assessing a home loan application by weighing how much they would lose in the event that a property is foreclosed.

    Therefore, paying a higher deposit reduces the loan to value ratio (LTV), allowing the bank to offer you a more favourable interest rate, as their risk exposure is reduced.
  • Good credit record - "you may have heard this over a thousand times, but the impact shouldn't be underestimated," says Nel.

    Optimally managing your financial affairs and making repayments to creditors on time will give you a better credit score and home loan interest rate.
  • Loan term - opting for a 30 year home loan may result in you paying a lower monthly instalment, but you are also likely to pay 64% more in interest compared to a 20 year term, and may also attract a higher home loan interest rate.
  • Extra monthly payments - paying a bit extra on your home loan every month will not reduce the interest rate, but will help you reduce the principle debt that the interest is calculated on.

This would allow you to substantially save on interest payable and reduce the term of your loan considerably. For example, paying R1 000 extra every month on a R500 000 home loan for 20 years at an interest rate of 10.5%, could save you R296 000 in interest payments and reduce your repayment term to 13 years.

"Depending on your individual circumstances, the decision to fix your home loan interest rate should be carefully considered and thoroughly researched to avoid making costly mistakes," concludes Nel.

For more information contact:
FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za
or 087 335 8277

Tips to save on funeral insurance


July 2017 - More often, consumers who are in financial predicaments are quick to turn to their bank statements to review the viability of grudge purchases like insurance, as a quick solution to free up cash to cover debt obligations.

"Although we encourage consumers to regularly review their policies, they should be careful not to make rash decisions under pressure, that would potentially place them in a far worse financial position when disaster strikes," says Lee Bromfield, CEO of FNB Life.

"A more practical approach is to assess whether the premium you are paying matches your insurance needs and value promised by the provider," he adds.

Bromfield shares a few tips of how consumers can save on their funeral insurance premiums.

  • Don't cancel your policy - this is a common mistake that ends up costing consumers more in the long run.

    Cancelling your funeral policy when times are tough could leave you and your loved ones financially stranded in the unfortunate event of death, forcing you to take on further debt commitments.
  • Combine policies - having more than one funeral policy with multiple insurers makes the premiums more expensive. You can save a lot of money in administration costs by combining your policies using one insurer.

    Before switching over to your preferred insurer, check their policy waiting period for natural and unnatural death to ensure that you aren't left without cover for the first three to six months.
  • Shop around - if you don't shop around and scrutinise the cover and benefits offered by your insurer, you could be paying a higher premium unnecessarily.
  • Paying your policies on time - insurers usually collect premiums on a set date at the end of the month, if there is no money in your account; your insurers may collect double the following month.

Not only are you at risk of lapsing your policy if there are no funds in your account for two consecutive months, but you may also incur additional charges from your bank if debit orders are not honoured.

Furthermore, you will be required to complete a six month waiting period for natural death when taking out a new policy, while still paying your premiums in full.

It is also critical to inform beneficiaries about the policy or your insurer when beneficiary contact details change as this may result in benefits being unclaimed, if your insurer is unable to track down your loved ones when you pass away.

"If your beneficiaries are not aware of the cover and you have not updated their details on the policy, you are wasting your premiums," concludes Bromfield.

For more information contact:
FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za
or 087 335 8277

International travel scams to look out for when traveling overseas


Johannesburg; July 2017 - As travellers, it is easy to think that we are smart enough to avoid getting ripped off. But, the truth is, it happens to the best of us. From getting ridiculously overcharged on cab rides to unknowingly revealing credit card information, travel scams exist the world over.

Anthony Grant, CEO of FNB Foreign Exchange says "While it is nearly impossible to know when you will be scammed, it is important to know what kinds of scams exist, and what to do should the situation arise."

Falling victim to a scam while travelling overseas can potentially ruin your travel experience and is likely to cost you money even if you have travel insurance, for example; if your luggage is stolen along with your passport, bank cards and cash.

"When you travel overseas as a tourist, you are seen as an easy target by potential scammers so before traveling, take some time and do some research on common travel

scams around the world and familiarise yourself with scams in the country you are visiting to be aware of the typical tactics used by scammers," says Grant.

Here are some of the most common international travel scams:

Bogus travel agents
The convenience of booking an entire travel itinerary online can be appealing, but prospective travellers are warned about rogue travel agents that look like legitimate entities. To avoid being scammed and losing thousands of rands, learn ways in which you can identify bogus travel agents. The first thing that should raise your suspicions is a travel package that seems too good to be true.

Never pay for anything unless you are really certain you are dealing with a reputable firm. Fake agents create sites that look real and ask customers to fill in their details including credit card details. Once you have given them your credit card details they can simply deduct money in exchange for a non-existent overseas trip. Upon enquiring you will discover that the website was set up to cheat unsuspecting travellers.

Currency short-change
Familiarise yourself with the currency of the country you are visiting to ensure that when you make cash purchases you get the right change. Some unscrupulous vendors take advantage of foreign travellers by claiming you have underpaid them, this is a ploy to confuse and get more money out of you simply because you are not familiar with the local currency. Make sure you understand the currency so that you are able to count the change that's handed to you.

Counterfeit entertainment tickets
When travelling for leisure, entertainment is top of mind, but be warned! Never buy tickets to an event such as a music show or soccer match from a stranger on the streets, while the deal may seem too good to ignore, it's probably a scam. The aim is to dupe you into believing you are getting a bargain when in fact you are being scammed. If there's an event you would like to attend, purchase your tickets from a reputable outlet.

Fake guides
Do not accept help from any random stranger who introduces themselves as a tourist guide as they could be part of a criminal syndicate. Their modus operandi is to lure travellers into spending money on expensive items or excursions for which they get a commission. No matter how friendly they appear to be, always be cautious before accepting help from anyone offering to take you around site seeing. To safeguard against scams, always use a guide allocated to you by the travel agency.

Card fraud
If someone calls you from the hotel you have booked into to verify your bank card details over the phone decline politely and proceed to the front desk to check if this call is legitimate. Through information peddling, scammers can get hold of your information and you will receive a call at an odd hour from someone claiming to be from the hotel booking desk calling to verify your payment details. This is usually a scam, once you have given your card details you will notice transactions coming off your account that are not related to your trip.

"Do some research about the country you will be visiting and look at reputable payment providers such as PayPal as an additional payment option before you travel. The first thing to take note of is that scammers are not easy to spot, they appear as normal as ever, the biggest lesson is to never let your guard down when traveling overseas. It's important to always exercise caution before and during your trip, regardless of which destination you visit," concludes Grant.

For more information contact:
FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za
or 087 335 8277

Long-term investing: hold gold in portfolio mix


July 2016 - Gold as an asset class is generally considered as a safe haven because its value generally does not fall during times of uncertainty in the market. Chantal Marx, Head of Research at FNB Securities, says "Gold is a precious metal and as such its value is not influenced by the same factors that impact other asset classes. Gold could be held along with other asset classes such as equities, bonds, property and cash as a means of diversifying."

Beyond just being a safe investment vehicle, gold also offers protection against a weakening local currency. For example, if you are invested in Krugerrands and the rand depreciates, you are protected against any losses because gold is US Dollar denominated, in essence its value increases when the rand falters. Krugerrands protect the value of money because they are traded close to the bullion contained in the coin. However, like any other investment, it's important to invest long-term in order to see favourable returns from your investment. The price of gold appreciates over time; therefore holding it for longer may be beneficial.

Marx says, "If you have a well-diversified portfolio, which includes gold, you will be buffered against adverse market movements because prices of different asset classes rarely move together. If for example, equity prices fall, bond prices may move up, property prices would not be impacted as much, and gold could end up being stable." "Through the FNB Share Investing platform, FNB has made it easy to invest in gold via its Online Banking or the FNB Banking App where prospective investors have an option to invest in gold by purchasing Krugerrands or through Exchange Traded Funds. However, it's also important to seek advice regarding your exposure to gold so that you do not end up with an overly conservative portfolio," she adds.

This is an opportunity for South Africans to look outside the normal investment vehicle and buy into something that is designed to preserve wealth. In a low growth economy, measured diversification could help you to stay on track towards realising your financial goals.

For more information contact:
FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za
or 087 335 8277

Managing input costs in animal & grain farming


13 July 2017 - Profitability in grain and animal farming is largely driven by input cost management, the lower the total of input costs the greater the profits yielded.

Paul Makube, Senior Agricultural Economist at FNB answers a few questions on the biggest expenses in animal and grain farming; he proposes some cost cutting measures for farmers in these sectors.

What are the biggest expenses in animal and grain farming?
Fertiliser accounts for roughly 22% of the direct variable costs, followed by fuel at +15%, herbicide and pesticides at +11% and seed at +10%. These of course will differ according to the commodity being produced, expected yield and whether it is in dry or irrigated land.

In livestock production, the greatest expenditure is in feed and health costs. Feed constitutes 50% to 55% of input costs. Maize constitutes +70% of livestock feed. The profitability of this sector is highly linked to grain production.

What can farmers do better to decrease the expenditure?
Grain farmers have to adopt a sustainable purchasing strategy for fertiliser and herbicides, together these account for over 30% of production costs. About 80% of fertilizer and some herbicides and pesticides are imported and therefore subject to fluctuations in the rand/ US dollar exchange rate and international prices. If one adds fuel to the mix, it therefore means that the farmer has no influence on prices of closer to 49% of production inputs.

A prudent application of fertiliser/ herbicide/ pesticides is required - application at the right time, in the correct type and quantities. It also means regular soil tests, practising conservation agriculture and adoption of genetically modified (GM) crops that in turn help lower the reliance on pesticides and herbicides.

Livestock requires an improvement in feed conversion ratios and a smart grain procurement policy which takes into account the high price volatility.

How does prudent farming impact on efficiency in farming?
Last year saw the worst drought since the 1900s. Grain prices skyrocketed and squeezed margins in the poultry, pork and feedlot industries. We also had an invasion of the Fall Army Worm. What helped is that almost 80% of South Africa's crops are GMs, minimising impact on the 2016/17 crop which saw the recent grain and oilseed production estimate coming in at a record high of 18.10 million tons, up 93% year-on-year (y/y). The maize crop estimate rebounded strongly by 101% y/y to 15.63 million tons, according to the June 2017 Crop Estimate Committee (CEC) report.

What rule of thumb should be kept to ensure that a farming business is sustainable even in tough times?
Ensure that a sound business and financial plan is developed, implemented and augmented from time to time to address the immediate and new risks.

"Like any business, profitability is increased by managing spend better. A noble idea would be to sit with a financial planner who can assist with a range of financial products to address individual and business needs" concludes Makube.

Why SA needs more new franchises to create more jobs


11 July 2017 - South Africa has over 35 000 franchise outlets that employ more than 300 000 people. Consequently, franchising holds the key for job creation, because the failure rate of franchise businesses is far less than a regular start-up. Morne Cronje, Head of Franchising at FNB Business says, "In spite of the economic slowdown that is having a knock-on effect on small businesses, the franchise sector continues to grow gradually and Franchise brands are doing better because of their strong business models and supporting structures."

Cronje shares four key insights on why we need more franchisors and franchisees:

Employment: Franchising is a healthy vehicle to drive sustainable jobs, this sector is often overlooked and we need to start investing in it by raising more awareness so that more people can be familiar on how to get into this sector.

Contributes to economic growth: Job creation can only be accelerated through sustained economic growth, and the stable nature of franchising businesses has the potential to make a sizeable contribution towards improving the economic well-being of South Africa.

Social impact: Newly established franchises can improve the standard of living for people who are residing in the communities they are serving. For example job creation, vendor support and introducing new programmes that will help people such as bursary schemes, sponsorships etc.

Increase gross domestic product (GDP): This sector has the potential of doubling its contribution to GDP in the next coming years. However, more education needs to be conducted by both private and public sectors to unlock opportunities. "Given the high unemployment rate in South Africa and the uncertainty of the economy outlook, the franchising sector can go a long way in improving the country's economic fortunes. On the other hand, a collaborative effort is required by different stakeholders in order to steer this sector to even greater heights," concludes Morne.

This view is further supported by the fact that according to Statistics SA, 48 000 South Africans lost their jobs in the first quarter of 2017. The franchising sector which contributes almost 12% to SA GDP - making franchising one of the few robust industries that holds enormous potential to create more work opportunities in this challenging economic climate.

For more information contact:
FNB Corporate Communications
Senzi Dlamini: Senzi.Dlamini@fnb.co.za
or 087 335 8277

Moving from renting to buying


14 July 2017 - If you've been renting for a while and are ready to take the next step to buying your own home, you need to do your homework and know exactly what you are getting yourself into.

Dr Simphiwe Madikizela, Head of Special Projects at FNB Housing Finance says, many first time buyers usually get blinded by the excitement of owning their own home and overlook the importance of research, which ends up costing them more in the long-term.

Apart from the home loan application and registration process, there are a number of other important factors that one needs to consider when owning a home:

Future needs
Avoid basing the decision of buying your house only on your current needs, rather take a long-term view and consider if the house will still cater for your family's needs in the future. For example, a two bedroom house may be perfect for newlyweds, but could soon be too small as the family expands.

Amenities
While you may get a bargain when buying a spacious house outside of town, you need to consider factors such as your work premises, medical centres and schools for your children etc. It may end up costing you more money and time to travel on a daily basis.

Free-standing or Sectional Title
When renting, you don't often put as much time and money on maintaining the property, depending on the agreement with your landlord. When you own the property, you will be responsible for making sure that the property stays in good condition at all times.

On the other hand, when buying a townhouse, you will be liable for a monthly fixed cost for levies, rates and taxes, over and above the mortgage loan instalment due to the bank.

Buying an old house
Buying an old house for a reasonable amount in a good neighbourhood may not be such a bad idea; however what many buyers often underestimate, is the cost of fixing up the house. Furthermore, without professional inspection, there may be other hidden defects that you would only discover once you move in.

Neighbourhood safety
While no area is immune from crime, it is essential for first time owners to research crime statistics in the area before buying. For example, if you have a job that requires you to travel a lot, leaving the house unguarded, you could easily become a victim of crime.

"Lastly, always save for rainy days, as life is unpredictable. When moving from renting to buying, it is advisable to save at least six months of your home loan and monthly expenses even if your job is not under threat. This will create a good safety net and give you a peace of mind should anything go wrong," concludes Madikizela.

For more information contact:
FNB Corporate Communications
Sam Mashele: Sam.Mashele@fnb.co.za or 087 736 5997

Can your business survive a recession?


19 July 2017 - We are in an economic downturn and managing a business through an economic recession may be the toughest challenge an entrepreneur is ever faced with; however, if you do not fall prey to panic, a downturn also presents an opportunity to the business to confront its ineffective areas and remedy them.

"Businesses should be able to do more than simply accept stagnating levels of growth, or even decline. In fact some businesses grow at surprising rates during economic recession. If there was ever a time to adopt a positive, opportunity-based mindset, it is now, and is one of the best things you can do to lead your business through challenging circumstances" says Heather Lowe, Head of Enterprise Development at FNB. To come out a better business at the end of any downturn, you need to carefully consider your business model and context in order to devise your strategy going forward.

Lowe shares some elements you should think about in this time:

What are the drivers of growth in your business?
If your business is a disruptive one that displaces traditional market participants like Uber disrupted the transport industry, you may find yourself less affected, however if your business growth is based on market growth or market tailwinds, a downturn could require you to adjust your plans.

What industry are you in and how has that industry reacted in downturn economic conditions historically?

What legislation protects your business or provides competitive advantage?
In order to grow the economy, emphasis is being placed on the SME sector, with regulations requiring increased procurement by corporates from this sector. Research the opportunities this may present.

Who are your customers and how sensitive are they?
Typically businesses supplying other businesses will be affected less and slower than those that serve the public, with subsequent changes in buying behaviour being more predictable.

What is your competitive advantage based on?
If your business is a "headache tablet", it may remain buoyant, but if your offering is a "nice to have - a vitamin tablet", you will likely encounter headwinds. This may mean you need to focus on your levels of service provision and quality to retain your clients.

"Before taking obvious decisions to avoid difficulty in a downturn, rather analyse your business model diligently and identify where the opportunities are to execute the core of what you do better, faster and more efficiently. With the right attitude in leadership, the current downturn could result in you strengthening your business as opposed to killing it" concludes Lowe.

Tips to save during tough times


13 July 2017 - Challenging economic conditions often come with a lot of uncertainties, and consumers will find themselves hard-pressed, but it's still important to make room for saving and continue practicing prudent financial habits.

Eunice Sibiya, Head of Consumer Education at FNB says "with the continuous rise in basic living essentials such as food and electricity, consumers need to relook their budgets and cut off unnecessary expenses in order to avoid over stretching their finances. As the cost of living escalates necessary lifestyle adjustments must be made to ease the pressure on finances. These may involve having to cut unnecessary expenses on non-essentials such as entertainment."

Sibiya shares tips that will help you cut unnecessary expenses during tough times:

Review your bank statement
Your bank statement is the first financial document that you have to look into when you want to cut expenses. Therefore, you need to review your statement with great attention because it can help you identify expenses that may be causing leakage in your pocket. Once spotted, act quickly by getting rid of such expenses.

Create a solid budget plan
Look at your budget plan to determine where to cut off unnecessary expenses as well as where you need to allocate more funds. This will give you a good indication as to where you need to start cutting off. It will be helpful to thoroughly check your budget plan every month to ensure that you stick to it.

Define needs vs wants
Knowing your needs vs wants is crucial in ensuring that you cut unnecessary expenses. Once you have defined

your needs, it will be easier for you to drop such expenses and channel the funds towards saving or creating an emergency fund. As an example, if you can't afford to buy a car now rather wait for when you can afford to purchase a car without having to stretch your finances.

Minimise credit
More often, credit eats up a reasonable amount of your income. Therefore, during these challenging times, it will be in your best interest to desist from taking on more credit to create more room for saving. If you have to take credit, you need to ensure that it will not set you back from meeting your financial goals.

Live within your means
While this might be challenging for a lot of people, it is advisable to spend less than you bring in a month. Any additional expense that is not from your income will potentially get you into debt which will further derail you from meeting your savings goals. For example, if your income is R10 000 and your total expenses amount to R12 000, this is a sign that you are living beyond your means.

"One of the best ways to avoid unnecessary spending is to translate the rands spent into the hours you worked to earn that income. If you spend what you earn a day on impulse purchases, it will be best to relook your spending behavior as this will seriously set you back from achieving financial freedom," concludes Sibiya.

FNB Business continues its focus on growing SMEs


17 July 2017 - FNB Business is taking proactive steps to increase and diversify existing levels of support for SMEs in line with the objectives of the National Development Plan. The bank is implementing strategy that supports government's national imperatives to accelerate transformation and inclusive economic growth.

Mike Vacy-Lyle, CEO of FNB Business says, "FNB is well positioned as a leading business banking franchise. We continue to focus on understanding the needs of entrepreneurs - something we call "businessism" - basically understanding the challenges that businesses have, and trying to help solve for this."

FNB has made great strides in increasing access to digital banking offerings enabling young businesses; facilitating quicker and efficient access to credit and fostering inclusivity in lending activities, ultimately supporting the development of the SME ecosystem.

FNB's strategy encompasses four primary objectives:

  1. Providing innovative and market leading solutions across all business segments with a strong focus on fast growing niche areas such as Agriculture, Franchising, Medical Businesses and Education.
  2. Providing real value to customers through the provision of non-traditional banking solutions like Instant Accounting, Payroll and BEE accreditation; cloud based document management solutions; CIPC registrations and maintenance, to mention a few.
  3. Enabling, growing and supporting financial inclusion and access to market for SMEs through Structured Lending, Enterprise Development, Supplier Development and Preferential Procurement initiatives.
  4. Development of value propositions for underserved markets yielding economic and social impact.

Vacy-Lyle says public-private sector partnerships have proved to be highly effective within SME ecosystems in emerging markets. He points out that FNB Business is no stranger to working with the public sector and has a number of active initiatives already operational, including:

  • FNB's Vumela Enterprise Development Fund partners with the Jobs Fund to mobilise funding to early stage, scalable SMEs with the primary aim of efficient job creation. The Vumela Fund has committed in excess of R200m, supporting 1591 jobs to date;
  • Working closely with the Gauteng Provincial Government to incubate and mentor their SME suppliers, aiming to reach 1,000 entrepreneurs through this engagement;
  • FNB Agriculture has risk sharing initiatives with both Khula and SEFA totalling R220m, and is working together with the Banking Association and the Department of Rural Development and Land Reform to facilitate land reform transactions;
  • Furthermore, FNB has established ana academy which provides technical assistance and training to Public sector.

He says the FNB will continue to seek partnerships to access alternate funding sources, risk sharing relationships and business development support platforms.

"An example of this is the additional funding FNB has accessed from the IFC for deployment into the SME sector. A progressively deeper engagement could stimulate opportunities for FNB to play a leadership role in currently under-banked and underserved markets," explains Vacy-Lyle.

"Our commitment to empowering SMEs includes helping businesses navigate the legislative and regulatory requirements in setting up a business, which we facilitate through FNB's CIPC business registration partnership, as well as Instant BEE certification offering," he adds.

FNB Business Instant Solutions includes a suite of offerings including an accounting system, which also affords payroll administration, invoicing functionality, cash management and budgeting. This offering is provided free of charge to the entrepreneur.

These offerings are making a significant difference, with 185,000 businesses availing of Instant Solutions and more than 3,000 CIPC applications being facilitated monthly. Approximately 22,000 business accounts are opened monthly, with more than half of them being held for black-owned businesses. FNB's automated credit environment alleviates the complexities normally encountered by SMEs when accessing credit, allowing for unsecured credit applications online.

"Our ongoing contribution to the national agenda remains a priority to us and we are excited about the opportunities and latent value we believe our strategy will unlock," concludes Vacy-Lyle.

Want to take a gap year - here's how to save for it


18 July 2017 - Taking a gap year may not necessarily be for everyone, but there still seems to be a growing appeal of a gap year amongst matriculants and graduates, presenting a time to explore both the world and oneself. Depending on what you plan to do in your gap year, your finances could play a big role. Whilst gap years are exciting - a year off without an income can be quite taxing so it needs to be planned for carefully. "Whether you are a young person who needs more clarity to consider future goals or you plan to travel before settling into your studies and ultimately your career, once you decide about what you want to do in your gap year you need to plan how you will fund this lifetime experience," says Stephan Buys Head of Strategic Business Development at FNB Cash Investments.

A few basic tips to help you save towards your gap year:

Set you savings goal
Whether you plan to spend an entire year travelling or volunteering in a specific country, you will need money for food, accommodation and transport costs. Start listing what you want to do, where you want to go, how you will get there and link costs to each of these items. This way you will be able to determine how much you will need to save.

Open a savings or an investment account
Now that you know how much you will need to save, open a savings or an investment account, specifically for your gap year. Make sure you take the time to find an account that works best for you as savings and investment accounts have different features - consider when you will need access to your money.

Get a part-time job before travelling
Take up a part-time job, as you will need to earn money

that you can put towards your savings goal. Depending on your current situation, you may be able to take up two jobs, not only will you earn more but you can reach your goal sooner. Working more hours will likely keep you from spending more.

Cut unnecessary expenses
Review your monthly spending by listing all of your expenses to identify where you can cut on things you don't need. Things like convenience foods, daily snacks and treats. Less spending means more savings that you can put towards your gap year.

Think about volunteering or taking a gab year job
Take the time to research gap year programmes, where you still get to travel and explore different places but at the same time get paid or provided with food and accommodation. You can also look at jobs such as au pairing, which are available in most countries.

Get a gap year buddy
Partnering up with a close friend not only means you will have good company to share the experience with, but financially it can assist as you will have someone to share some of the costs with.

Set monthly targets
Set monthly targets, on a monthly basis aim to settle expenses such as costs related to acquiring a Visa, airfares, accommodation and travel bags. In this you will be able to settle major expenses before the trip commences.

"Taking a gap year is not a cheap exercise; however, it's possible to take a gap year without incurring debt. What's most important is to start planning early and ensure the plan is adhered to," adds Buys.

You are never too young to get life insurance


24 July 2017 - If you are employed and have people who rely on you financially having life cover is essential regardless of your age.

Lee Bromfield, CEO of FNB Life says the most basic need for life insurance is to ensure that your loved ones are not impacted financially in the unfortunate event that you pass away.

"For families that are finding it hard to make ends meet, not having life cover can both be a missed opportunity and a costly mistake as a loss of income could have undesired consequences," says Bromfield.

Young professionals often assume that life insurance is only necessary when having your first child or getting married, overlooking the fact that there may be other family members or dependants who rely on them directly or indirectly.

"Even if you don't have people that depend on you yet, there could be those who are already looking up to you to assist financially. For example, siblings that you could assist with school requirements and funding for university," says Bromfield.

He says a life insurance policy could further help realise aspirations that you would not be able to fulfil in the unfortunate event of death, such as building a family home or property portfolio in order to create wealth and leave a legacy.

"With a life policy you can ensure that your dreams still come true when you are no longer around to realise them personally," he adds.

Your policy can also come in handy to reduce tax costs associated with winding up a deceased estate and ensure that your beneficiaries get the maximum of their inheritance.

Depending on your income and risk level, when getting a home loan, banks may also require you to take out a life policy which would be ceded against the loan. This ensures that your dependants don't have to worry about lenders coming after the asset should something happen to you.

Moreover, life insurance is more affordable at a young age compared to when you are older. Therefore, getting life cover as early as possible will not only safeguard your dependants, but will help ensure that you get a good premium rate.

"If you neglect taking out life cover as soon as you start working you could be compromising the financial wellbeing of your loved ones," concludes Bromfield.

Five ways to be credit smart


26 July 2017 - Good money management does not only mean building up savings to meet your goals, it's also about being able to use credit responsibly to help you achieve your goals.

Emma Mer, CEO of FNB Personal Loans says the average South African adult can relate to a situation where they require access to money to solve for a specific need, and a Personal Loan is often the ideal product because of its structured repayment term and ease of accessibility.

"Whether it's to cover a shortfall in your child's education savings, to take care of medical and family emergencies or to top up savings for your special wedding day - we all know about significant life events where you need access to money," Mer says.

Mer says that Personal Loans play an important part in the life of South Africans; however she also reminds us that "every consumer has a duty to manage their Personal Loan responsibly in order to keep their finances and credit worthiness intact." Borrowing for every day expenses or for luxury items that aren't a necessity is not a wise decision. It's better to save up for such items and to manage every day expenses carefully within a budget.

Mer provides the following useful tips to help you become "credit smart":

Borrow from a trusted provider:
It can be very enticing to have credit providers offering you deals, but be very selective about where you borrow money. It's safer to borrow from a bank as they are governed by strict industry rules.

Do not over extend yourself:
This is where financial discipline becomes important. Avoid the temptation to borrow more than you require as this could have a negative impact on your disposable income and your credit record if you become unable to repay.

Choose a Personal Loan amount and repayment term that makes your instalment manageable:
The term you choose to repay your Personal Loan is important as it directly impacts your monthly instalment Make sure you can afford your repayments. Should you be able to pay off your Personal Loan early, FNB will not charge you any penalties.

Pay on time:
Paying your Personal Loan on time is important in order to keep a good credit record, which determines your ability to get credit in future.

Pay by debit order:
Paying via a debit order is one of the easiest, most reliable and cost effective ways to meet your repayment obligations.

"At FNB, we encourage our customers to first apply with us. Customers who bank with us typically do not require any documentation to complete their Personal Loan application, and can access a Personal Loan quickly and easily through our various channels," says Mer.

Put in a little extra in your retirement savings


27 July 2017 - Topping up retirement savings is not only a proactive way of increasing your retirement savings, it's also a way of laying the foundation for a financially secure retirement.

Preenay Sathu, Channel Head at FNB Advisory, says "Whenever you have a surplus lump sum from a bonus pay out, consider putting some of that money towards retirement savings. Most people who have some form of a retirement saving vehicle such as a retirement annuity (RA) contribute the required monthly minimum into the fund. While this is acceptable, the major downside with adhering to minimum contributions is that you may not be able to outpace inflation and build up the required saving to secure a comfortable retirement."

"Most South Africans underestimate the importance of saving adequately for retirement, therefore topping up at different intervals can have a positive impact on retirement savings to ensure there's enough to retire on."

There are also tax benefits related to topping up your retirement. For example, if you have an RA and you increase the amount of money contributed through a lump sum, this may influence the rebate amount you

receive back from SARS. In essence, you get a refund for securing your financial future by putting more money towards your retirement.

"Receiving some money as a refund from retirement can improve one's discretionary income, but the prudent approach would be to direct this cash towards savings instead of spending it," he says.

Whilst the length of time spent saving for retirement is an important determination in whether or not you retire comfortably; what matters more so is the total capital that has been saved over this time period. With that said it's always better to start saving for retirement as early as possible and then over time contribute lump sums where possible whilst ensuring that the regular premium contribution increases are atleast in line with or in excess of inflation.

"The amount that gets added to your monthly contribution does not have to be substantial, just as long as it adds onto what has already been saved," Says Sathu.

The dti and FNB sign pledge to improve access to finance for black industrialists


25 July 2017 - The Minister of Trade and Industry, Dr.Rob Davies together with First National Bank (FNB) Chief Executive Officer (CEO) for Public Sector Banking, Mr Kgosi Ledimo have today signed a pledge that will improve access to finance for Black Industrialists (BI) to fast-track accelerated economic transformation at a ceremony that was held in Johannesburg.

Speaking at the event, Davies outlined that the partnership will see the two entities share information regarding various products offered by the Department of Trade and Industry (the dti), with a focus on facilitating information-sharing regarding the dti's incentive programmes.

"By committing to this agreement, we undertake to collaborate with FNB in marketing our incentives and other related programmes on their website, we will also put measures in place to evaluate applications for financial support that are referred or received through FNB. This partnership will improve access to finance particularly for businesses in manufacturing, thus ensuring government's strategic objective of creating new role-players in the economy," said Davies.

Ledimo expands on this "we have dedicated resources to assisting governments focus on growing entrepreneurship and involving a greater number of previously disadvantaged qualifying businesses. The MoU to disseminate information through the FNB website is a commitment from FNB, to show how serious we are with working with government in achieving the goals set out in the National Development Plan 2030."

the dti has identified the Black Industrialists Scheme (BIS) as a pilot to initiate the proposal with a view to adding new incentives to previously disadvantaged and/ or predominantly black-owned businesses.

"Through this programme, government hopes to contribute towards shifting the demographic composition of South Africa's industrial sector and engage the underutilised source of jobs, revenue, taxes and innovation, which are black Industrialists. Since its establishment last year, the Black Industrialists Programme has approved 52 projects for support, with a projected investment value of R4.5 billion; this has been co-funded with other financial institutions," added Davies.

The long term goal with the dti and FNB is focused on enabling a greater number of South Africans access to the dti's schemes and funding platforms through making this information more accessible through FNB's platforms, starting with The Black Industrialist scheme.

"As a Bank, we model our response to market through our brand mantra - how can we help you - and in response to the need to drive a much higher number of active entrepreneurs in South Africa, we continue to look for innovative ways of playing our part in enabling a better South Africa," concludes Ledimo.

Droplets of hope for the Western Cape dam levels


27 July 2017 - The moderate rise in Western Cape dam levels is encouraging for the agricultural sector in the region, although the province is not out of the dry spell as yet.

In the latest update on the state of South Africa's dams, water levels stood at 69.9% full on national level as of the 24th of July 2017, which is way better than last year's 51.8% around the same time. The only exception is the Western Cape where dam levels have fallen below 50% full with lack of rains delaying the planting of the winter crops.

"The Western Cape is still very much in the grips of the dry spell. The province continues with its water restrictions throughout all its regions. The winter rains have assisted slightly but have not had the desired impact as yet as the water levels remain critically low. The parts of the Western Cape that are 'non-winter' rain areas are in a far worse position. The only positive is that there has been a general one percentage point increase in dam levels across the Western Cape from the previous week," says Paul Makube, Senior Agricultural Economist at FNB.

Water availability in winter rainfall areas is at 26.2% weekon-week versus last year's 50.4%. Dam levels in nonwinter areas are at a critical low of 19.6% versus last year's 45.6%.

"The water level in Western Cape's biggest dam, the Thee Waters Kloof, has had a slight increase week-onweek at 20.9% full versus last year's 42.6%.

"We expect the Western Cape to have decreased agricultural production due to the lack of significant rainfall. The knock on effect there could be lower seasonal employment in the agricultural sector. The recent relative good snowfall over the Western Cape mountains, will however be beneficial for dam levels as soon as warmer weather sets in. We also look forward to a recovery in non-winter areas of the Western Cape because the previously anticipated El Niño weather pattern has diminished, with neutral conditions slowly manifesting , implying a normal rainfall in the new production season ahead," concludes Makube.

Keeping up with the banking needs of millennials


31 July 2017 - The Millennial generation expects a lot more than digital savviness from their bank; they want a digitally capable bank that understands their financial aspirations, offers them help and solutions to achieve financial independence.

Khathu Ramoliko, Sub -Segment Head for FNB Gold says a large portion of the bank's Gold customers is made of up Millennials, aged between 18 and 35. "This group of the population has enormous buying power and because of the multitudes of information they are able to access via digital channels, Millennials tend to be much more informed than people assume."

Khathu says when it comes to banking needs most young people prefer to be in control of their money and the manner in which they transact.

"The need for control is one of the factors we've realised among our FNB Gold millennial customer base and we continue to provide tools to exercise more control. FNB Gold customers are now able to tap into self-help solutions across our banking App such as sending money via eWallet, setting up a savings or an investment account, reporting fraud, cancelling lost or stolen cards."

Even though Millennials are often considered passive on most issues, research by Deloitte indicates that they do care about their future. The Deloitte survey shows that 56% of SA Millennials prefer full time employment while over 50% of those surveyed showed appreciation for the need to grow the economy.

"It's important for Millennials to appreciate factors which could help or hinder the journey towards realising their aspirations. The South African millennial is also caught between a world where some are expected to look after siblings and less fortunate family members while at the same time, grappling with peer pressure to be seen to be making progress in their lives through accumulation of possessions."

Khathu says this is one of the reasons Millennials should choose a bank that not only fits their lifestyle but one that shows consideration for both simple and complex needs. He says even though young people need a bank account, they also need access to housing finance to be able to own property, access to a personal loan to top up when in need of cash or to be able to save.

"These are some of the needs we are solving for as bank," says Khathu. "Our consumer friendly multipurpose FNB App closed a lot of gaps for the millennial generation. The solutions we offer via the app go beyond traditional banking into lifestyle enablement, such as functionality to renew car license disks or getting the full history of a property that's for sale through nav». We believe that we have the right solutions to service the needs of the millennial generation," he says.

Success in Smart IDs and passports issued through FNB branches


01 August 2017 - The use of banks as a channel for issuing Smart ID cards and passports is proving to be a success. This is according to FNB, which says approximately 45% of all Smart IDs and passports issued by banks have been issued through its branches.

Lee-Anne van Zyl, CEO of FNB Points of Presence, says "We are delighted to assist Home Affairs by using our channels to enable FNB customers to access this important service. FNB customers are now able to book an appointment through eChannel, which is the Home Affairs online portal, and simply visit the dedicated FNB branch to complete the application process."

Through eChannel, individual customers can apply for their Smart ID or passport simply by logging into the internet, completing their details and securing an appointment to finalise the application process.

"This innovative partnership gives us an opportunity to help our customers with a lot more than just transactional products. As a digital pioneer, FNB embraces the use of technology to render services in a seamless and efficient manner, and the success of this undertaking is testament to that. Our superior digital capabilities continue to generate incredible benefits for our customers and we are delighted to be able to offer this additional benefit to customers who need it," adds van Zyl.

Over the years, FNB has been at forefront of promoting access to digital banking and value added solutions. More recently, the bank ramped up its efforts to improve access to digital banking by zero rating its banking app across all major networks, meaning customers no longer need data to bank via the FNB app.

Lee-Anne says they adopt a multi-tiered implementation of their digital strategy, including ensuring that customers who visit FNB branches are able to tap into digital capabilities.

"We are seeing customers increasingly adapt to using digital platforms in our branches, such as Automated Deposit Tellers (ADTs) and making use of Digi Zones to process transactions a lot quicker.

We believe that digital evolution is a journey and FNB is committed to enabling its customers throughout," she concludes.

The Garden Route and Klein Karoo are gems for tourism business


03 August 2017 - Tourism is noted by government as one of the major industries with the potential to drive down the immensely high rates of unemployment in the country, if harnessed to its full potential. The Garden Route and Klein Karoo have in many ways embraced this notion.

10 million passengers passed through Cape Town International Airport in 2016, which accounts for a 36% year on year (y/y) increase in international arrivals at the airport in April 2016 when compared to the year prior. The question to ask is where these tourists spent their money, and on what exactly?

"What makes South Africa great, outside the favourable currency exchange for international travellers, is how much one can actually do in a single holiday, you could go from coast to forest or Safari to a semi-arid wonder in one country in a single holiday, the Garden Route and Klein Karoo are a firm favourite for this very reason," says Charnel Kara, Tourism Expert at FNB Business.

In 2016 the Cape Garden Route & Klein Karoo received 45,6% of the overseas visitors and 53,2% domestic visitors illustrating an equal split of overseas and domestic visitors to the region. It also grossed the highest in tourism incomes in the country, boding well for local businesses there.

In 2016 88,8% of visitors to the Cape Garden Route & Klein Karoo were there for the purpose of holiday, contributing largely to the accommodation sector in the Western Cape, and also positioning it as one of the most favourable holiday destination in South Africa.

"The top international markets to the region were United Kingdom (33,5%), Germany (11,0%) and Netherlands (12,7%), meaning that foreign spend was the majority of tourism spend in these Cape Garden Route & Klein Karoo. The most impressive of the percentile to consider is that 56,5% of the tourists to this area were overnight visitors. This translates to spend on accommodation, increased spend on food and entertainment too," adds Kara.

Spaces such as Knysna, along the Garden Route, keep tourists coming back every year, the Oyster Festival injected an estimated R150-million into Knysna's economy over 10 days in 2016.

"It goes without saying that the Garden Route and the Klein Karoo are the gems of South African tourism in terms of income versus offering, but there remains a great deal that business can do to increase income. A start would be finding a way to increase visitors in the winter seasons which tends to attract lesser numbers as the current successes have been achieved mostly within the popular warmer seasons," concludes Kara.

Building wealth through multiple properties


03 August 2017 - Many individuals who already own more than one property mistakenly overlook key principles of wealth creation that could potentially unlock their ability to grow their property portfolios.

Praven Subbramoney, CEO of Private Bank Lending at FNB says the ability to build wealth through multiple properties should not be determined by how deep your pockets are, but rather identifying niches in the market and maximising assets and expertise that you already have at your disposal.

"Wealth creation is a process and cannot be achieved overnight. Therefore, the first step is having a clearly defined, long-term strategy and objectives that will underpin your venture," says Subbramoney, as he unpacks some of the important factors to consider when building wealth through multiple properties:

  • Area of specialisation - identifying the types of properties and market you want to target is vital. If you are in the business of leasing to students, it makes sense to acquire multi-tenant properties situated next to universities, whereas if you focus on renovating and reselling for a profit, finding distressed stand-alone properties which are sold below their market value may be ideal for you.

    However, as you progress in growing your portfolio, you can then consider property diversification.
  • Market trends - research underpins your success in this sector. Understanding where to buy, when to buy, how much to offer for a property and knowing the right time to sell an underperforming asset will determine your success.
  • Start small and work your way up - the biggest mistake that individuals make when starting out is overstretching themselves financially by going for properties that are beyond their reach. Start investing in more affordable property and build your way up. For example, if you are in the student accommodation market you can get flats in Braamfontein, Johannesburg next to major universities from as little as R350 000 for a one bedroom flat to R1.3 million for a three bedroom flat.

    Depending on your strategy, it may be risky to go for the R1.3 million flat when you have limited cash flow.
  • Maximising assets - leveraging the existing equity in the properties that you currently own can help you take advantage of viable opportunities. Lenders are also able to provide you with a range of solutions tailored for your needs, with a competitive mix of rates, flexibility around repayment options as well as capital access.

    For example, you can always refinance your current property and use the equity to take advantage of new opportunities or use a combination of securities that you currently own to raise a loan.
  • Cash flow management - like in any other businesses, cash flow is the lifeblood of your property portfolio. Not only is keeping track of money coming in and out of your portfolio essential for making strategic decisions, lenders may also require your cashlow statements to approve loans in the future.

    Monitoring your cashflow can also help you identify properties that are over and underperforming in your portfolio.
  • Take advantage of technology - innovative digital tools can give you access to valuable information about a property, instantly at a click of a button.

    For example, with nav» Home which can be accessed online and on the FNB Banking App, you have the opportunity to search for new homes, get free instant value estimates, pre-approvals, calculators and access to a database of home service providers.

    Nav» Home also offers free area and property reports that are pulled from a number of sources including the bank's own valuation base built up over years and the Deeds Office to give a comprehensive overview of a suburb or particular house.
  • Using the right professionals - while this may not be essential when starting out, you should consider investing in a team of professionals as your portfolio grows. Depending on the type of portfolio you are pursuing, you need a list of qualified experts, such as tax practitioners', estate and rental agents, attorneys, builders, renovation contractors, electricians, plumbers and valuators, amongst others.

    Although, some of these experts may come at a premium, the investment will be worth it in the long-term.

    "Lastly, developing a long-term relationship with a Private Banker who truly understands your financial needs and goals, and can deliver exclusive, carefully considered solutions to help you grow your bottom line, cannot be over emphasized," concludes Subbramoney.

Don't let money be the end of your relationship


07 August 2017 - What's the best way to manage family loans? Be careful not to get into serious debt trying to help a family member, it's important to set clear rules about how money is treated in the relationship. There's always a risk that because of the family connection, repaying may be deemed unnecessary.

Eunice Sibiya, Head of Consumer Education at FNB says, "We've all heard of or have experienced helping a family member financially. In some instances, the only option to be able to help is to get a personal loan or use your credit card."

"Before making funds available to a family member, always make sure that helping out will not severely compromise your financial position. If you need to take a loan to help them, it's important to budget so you ensure that you can afford the repayments and use a trusted credit provider that will not charge you far more on interest than what the law prescribes. Similarly, if you decide to use your credit card to help, you must be able to afford the monthly instalments regardless of whether your family member pays you back or not. The last thing you want is to default on your own commitments," she adds.

Sibiya shares factors to consider when lending family money:

Lend what you can afford: while you might see the need to help a family member who is in great financial need, you must be careful not to lend more than you can afford. Even though a reputable credit provider such as a bank will do proper affordability assessments before giving you a loan, the fact that you are the one taking out the loan means you are the one responsible for the repayments.

Set clear rules from the beginning: Lending money to family may be a good gesture; however it must be done within a set of rules to ensure that commitments are honoured while preserving the relationship. Prior to handing over money to a family member, both parties must agree on a repayment plan and commit to it.

Learn to say no: if you feel that lending your family money will do more harm than good, be honest with your family in order to save your relationship. Sometimes saying no when your family borrows money may be the best way to keep harmony in the family.

You offer them an easy way out: when you constantly lend your family money whenever they are not able to make ends meets, you are giving them an easy way out instead of encouraging them to work through their financial challenges. Perhaps encourage them to see a qualified professional who can help them manage their finances properly.

"While helping family members is a good gesture of support, there must be clear rules as to how money is treated in the family. Helping someone in great financial need is good but constantly helping the same person over and over is actually offering them an easy way out of their financial challenges," Concludes Sibiya.

A health cash plan can cover loss of income


08 August 2017 - People who are self-employed, temporary workers, artisans, vendors and tradesman who are not permanently employed can often find themselves facing huge medical bills and expenses in the unfortunate event that they are hospitalised for a couple of days.

Being hospitalised also means that individuals who rely on their skills to put food on the table will usually have no income during this difficult time.

"A health cash plan which can cover your entire family for non-medical expenses, as a result of hospitalisation is ideal in this situation, since you can qualify to get a cash pay-out for each day that you are in hospital," says Lee Bromfield, CEO of FNB Life.

"You can find yourself with a huge gap in your income when hospitalised, leading to financial stress as you worry about money needed to pay for daily expenses and bills which won't simply go away just because you are sick," says Bromfield.

It is, therefore, essential to always plan ahead for emergencies as you will never know when you will get sick or injured, especially if your job requires you to be healthy and physically present all the time.

"Even if you do have medical aid, a health cash plan will still come in handy to provide you with some sorely needed cash to help with any additional expenses incurred while you are in hospital," adds Bromfield.

He cautions, however, that a health cash plan policy should not be confused for a medical aid, but rather be used as complementary cover for bills that would normally not be catered for by your provider.

For example, since the health cash plan benefits may be used for anything you want, someone who has lost two days of work and income, can use the cash benefits to make up for the days lost.

"Furthermore, it is important to read and understand the terms and conditions when taking out this policy to know exactly what you are covered for. For instance, many insurers will not cover you if illness, injury or dependence syndrome occurs as a result of using substances such as drugs or alcohol," explains Bromfield.

FNB now offers a health cash plan to all its customers, their spouses, up to eight children, four parents or parents-in-law and up to seven extended family members.

The FNB Health Cash Plan pays out your chosen daily cash benefit for non-medical expenses if you are hospitalised for more than 48 consecutive hours.

For more information customers contact:
087 736 7772 or visit www.fnb.co.za

The rise of women in franchising


10 August 2017 - Over the last ten years, the franchising industry has seen a trend of more women taking up opportunities in franchising and this is expected to further increase over the next five years.

According to the international Franchise Association (IFA) there are more than 25% of women operating franchises in the world and that doesn't include another 17% of the population where men and women operate franchises together as partners.

Morne Cronje, Head of Franchising at FNB Business says, "Women have the ability to use their time, energy and resources effectively to meet and achieve business goals. This trait, in my view, is the cornerstone for successful women in franchising. In a country like South Africa, the growing involvement of women in franchising is vital, considering that women make up the majority of our population."

Cronje shares four successful franchise industries hat women are dominating in:

  • Education - More women are attracted to this space because they are not only looking for profits but a community and economic impact.
  • Slimming salons - Women-led franchises in this space tend to specialise in weight loss products and services. Currently, there are good business opportunities in this component of the health sector as more people are becoming health conscious.
  • Accessory and arts - Designing and selling jewelry such as brooches, rings, necklaces, earrings, and bracelets. More women are starting to become thought leaders in this business, setting trends and staying ahead of popular accessories.
  • Beauty salons & Nail bars - This is one of the industries pioneered by women, with its main focus being hairdressing, make-up, cosmetic treatments, manicures, pedicures and nail enhancements. Interestingly men are also increasingly making use of these services.

Despite the limited awareness about the important role and great strides that women continue to make in franchising, it's important for more women to consider exploring opportunities in this sector since it's one of the most resilient. The success rate of a franchise business is far better than a traditional start-up or small business. Consequently, franchising is one of the few industries in South Africa that are showing steady contribution to the economy and employment.

Best way to keep a healthy bank account


10 August 2017 - Most consumers assume that a healthy bank account means having thousands in your account at any given time, but nothing could be further from the truth. Maintaining a healthy bank account has very little to do with how much money you have but more to do with how you manage the account.

Khathu Ramoliko, Sub -Segment Head for FNB Gold says under the current economic circumstances, consumers are on the lookout for ways to cut costs while some resort to extraordinary steps such as skipping debit order payments or withdrawing every cent the minute they get their salary.

"This kind of behaviour carries a number of risks - not only will your account be overdrawn but the long-term negative impact will be adverse remarks on your credit record should you skip debit orders. This is why it's important for consumers to know the importance of keeping their bank accounts in good standing," he explains.

There are easier ways of maintaining a healthy bank account while managing any potential financial risks. Khathu says it is essential to do a health check on your finances by looking at items coming out of or into your bank account. He says most people avoid looking at their finances until things go wrong. "Simply looking at where you may be overspending could help you: for example, cutting back on items such as entertainment, coffee, snacks can help you keep your finances in good health."

Another way of ensuring you keep a healthy bank account is to have an account that suits your needs and financial aspirations, because as it stands, you may not be getting your money's worth. Consider your options thoroughly, instead of choosing a pay as you use account that accumulates costs for each transaction, rather take up a bundle option where you pay a single fee for a comprehensive range of services. Not only are bundle fees easier to understand but you also get to save on fees.

"We see the majority of our Gold customers being able to get much more value from their bundled accounts as it gives them the ability to control their spend, earn eBucks Rewards while enjoying a number of free benefits like free card swipes and cash@till transactions. The upside of having a good handle on your account is that you are able to balance between saving and spending," he says.

Khathu says another important factor is the need to be responsible about debt, pointing out that your bank account gives a reliable assessment of your relationship with money.

"Whether it's a personal loan or an application for housing finance, you need to be able to demonstrate through your bank statement that you can afford the loan for the duration of the payment term. On the savings side, make provision for emergencies by setting up a scheduled transfer into a savings account, this money can cushion you against any unplanned costs, such as having to replace your car tyres unexpectedly for example.

"Consumers must always prioritise keeping a healthy bank account as it gives a person much more financial flexibility and better financial prospects," concludes Khathu.

Pros and Cons of a joint home loan


15 August 2017 - At some stage in life everyone aspires to have a home of their own, but circumstances such as not earning enough income to qualify for a bond can often come in the way. Fortunately, banks do allow individuals to apply for home loans jointly to be able to realise their dreams.

Dr Simphiwe Madikizela, Head of Special Projects at FNB Housing Finance says a joint application can help increase your chances of qualifying as both parties' incomes and expenses are taken into account to assess the affordability based on their disposable income.

"Before applying for a joint bond, you should be aware of the advantages and disadvantages to avoid any pitfalls," says Madikizela.

Pros:

  • There is a high likelihood that the housing loan application will be approved if both individuals have a good credit record.
  • You can afford to buy property that one partner wouldn't necessarily afford with their salary alone.
  • You could benefit from a good interest rate as affordability assessment is done on both parties.
  • You are only liable for half of the bond payments and legal fees.

Cons:

  • If you are not married, you will share ownership of the property with another individual once paid off.
  • If there is a default, both partners' credit records are affected.
  • Should one partner want to pull out of the bond agreement, a new bond application will have to be processed and a full credit assessment conducted on the application to verify affordability.
  • In addition, the home loan facility will be closed, which means you will have to pay bond registration fees for the new home loan facility.
  • Upon the approval of the home loan, the bank may require both applicants to have adequate life cover that will be ceded onto the bond.

During the application process, both parties need to sign all the necessary documents such as the offer to purchase, home loan quote and legal documents, etc.

Most importantly, the monthly debit order has to come from one account. As a result, this will have to be agreed beforehand to ensure that there are always funds available to avoid defaulting on the monthly bond repayments.

"Buying a property is a big commitment and the decision to buy with someone else should not be taken lightly. The parties need to work out all the eventualities before taking ownership as shortcomings could potentially set you back financially," concludes Madikizela.

FNB Islamic Banking nominated for Best Islamic Banking Window for 2017


18 August 2017 - FNB Islamic Banking was recently nominated as the 'Best Islamic Banking Window 2017' by the Awards Committee of the 7th Global Islamic Finance Awards (GIFA). GIFA is an annual awards ceremony held to celebrate institutions and individuals who have made a significant impact in driving thought-leadership and the implementation of world class initiatives in the Islamic banking and the finance industry. The Awards are open to all banks and financial institutions internationally and are considered to be one of the most prestigious in the world of Islamic banking and finance. This year, the Awards ceremony will be held in Astana, Kazakhstan during September. The event is expected to be attended by senior delegates and Heads of State, such as H.E. Ismail Omar Guelleh, President of the Republic of Djibouti and H.E. Nursultan Nazarbayev, President of the Republic of Kazakhstan, among others.

FNB Islamic Banking's nomination alone is testament to the lengths to which FNB has gone to create industryleading Islamic banking solutions. "As a bank, we have positioned ourselves as a leading innovator in the financial and banking sector, with a focus on using cutting-edge Islamic solutions to remove the angst in both commercial and retail banking. This nomination attests to the amount of work that has been done in creating Islamic banking products that speak to market needs," says Amman Muhammad, CEO of FNB Islamic Banking.

Besides evaluating the Islamic Banking Window's overall commitment to Shari'ah compliance and social responsibility, the Awards Committee also considered the general innovation in products and services; the quality and quantity of products and services offered; the overall geographical reach of the products and services, and moreover, if the products and services met the standards and best practices of the global Islamic financial services industry.

The accolade attests to the growing stature of Islamic finance in Southern Africa and the broader African continent. "Since FNB became the first commercial bank in South Africa to offer Islamic banking services, we have grown significantly and have created market-leading lending, savings and investments and insurance alternatives that are compliant with Shari'ah principles. Our products and services have communicated the banks' ability to create solutions aimed at assisting our clients to make banking seamless. The award is in many ways an expression that we have impacted on the market positively", concludes Muhammed.

This latest acknowledgment for FNB Islamic Banking follows other such awards and accolades, including one recently presented by Banker Africa, which saw it recognised as having the 'Best Islamic Banking Offering' at the annual Southern African Banking Awards 2016.

Honey and the hive of concern


14 August 2017 - Honey production is a relatively small market internationally, even more so here in South Africa. Over the last couple of years, a combination of factors, highlighted by recent droughts, has led to a decreased availability of honey, which translates to increased prices and a local producer market that is fast facing international competition. Paul Makube, Senior Agricultural Economist at FNB, answers six questions around the slowing production of honey, and the hive of concern around its impact on local producers and consumer markets -

1. How extensive is the lack of honey in SA and global market?
SA production is normally around 2, 000 tons per year and current estimates indicate that a decrease in production is expected. At least 1, 000 tons is normally imported. At 3,000 tons local consumption far outstrips supply and the deficit is met by imports, mainly from Argentina, China and Australia. However, there are concerns over the quality of some of the imported product. Domestically, adverse weather conditions particularly in the Western Cape have contributed to reduced production and raised the need for imports. Other production areas of South Africa such as KwaZulu-Natal (KZN) were not as badly affected.

2. How has it impacted on pricing?
The shortage has resulted in upward pricing as the market is generally small both locally and internationally. Wholesale prices ranged R40.00 to R45.00 per kg in previous years and have recently reach R65 per kg due to the drought.

3. How has it impacted competitiveness of SA businesses?
The reduced domestic production situation attracted imports which mean loss of market share for the local product and producers.

It should however be noted that the critical importance of honeybees is not only for the production of honey but for agriculture and conservation as well in terms of their role in pollination of deciduous fruits and conservation of floral reserves and in terms of maintaining biodiversity. The recovery of this sector is therefore more important for the agricultural market as a whole.

4. Are there measures in place to assist this market and businesses in this sector?
Support is in terms of legislation and agriculture and conservation services by the various departments. Honey Standards are currently promulgated in terms of Regulation 835 dated 25 August 2000 in terms of the Agricultural Products Standards Act, 1990 (Act no. 119 of 1990): Regulations relating to the Grading, Packing and Marking of Honey and Mixtures of Bee Products intended for sale in the Republic of South Africa.

These are however not financial in nature and the market has to fend for itself from a marketing and infrastructure perspective.

Commercial producers face serious challenges such as vandalism and theft, pests and diseases, competition from cheap imports, the Capensis problem, loss of forage, and still a lack of research capacity. For example, a hive can easily cost R1,000 with spinners prices ranging from R30,000 to R40,000. This, combined with a lack of swarms to purchase which can easily be priced at about R1,500 per swarm, is a huge barrier to entry into this market. New entrants to the market will also need to learn by at least working on any other running operation or farm.

5. What are the short and long term impacts on the agri sector?
While production is expected to rebound as conditions normalize, the effect on the agri-sector could be huge if there is no sufficient recovery. For example the valueadded by the managed honeybees on the South African deciduous fruit industry alone could easily exceed R200 million per year. The broader impact on biodiversity could even be bigger in the longer term.

6. Has the drought been responsible for the lack of honey?
Drought was a principal factor in the current shortage. However, it should be noted the limited domestic supply situation has always been due to the combination of rising demand and the lower production. "We look forward to a recovery in honey output, for the foreseeable future, the current decrease in production of honey seems to be a problem that will correct as the conditions in the season ahead improve," concludes Makube.

Annual Results 2016/2017


07 September 2017 - FNB's domestic earnings climb 8% on the back of good topline growth and improved efficiencies

Key performance markers

  • Business and Premium Segments pre-tax profits up 15% and 22% respectively.
  • Deposits across all domestic segments up 13%
  • Good cost containment
  • Overall bad debt ratio at 1.20%, up modestly yearon-year
  • Financial transaction volumes grew 10% compared to last year
  • Adverse macro-economic factors created headwinds for some Africa operations

Spokesperson: Jacques Celliers, CEO First National Bank

Johannesburg, 7 September 2017:

FNB lifted its earnings by 8% domestically with profit before tax increasing by 22% in the Premium segment and by 15% in the Business segment. The bank's Consumer segment reported a 6% decline and including the FNB Africa performance, overall FNB earnings increased 5%. FNB remains deeply committed to expansion in Africa and as a result is incurring ongoing investment costs.

The product simplification and re-pricing in the Consumer segment has already had a positive impact and positions the business well for the year ahead.

Customer numbers increased 4% from 7.48m in June 2016 to 7.8m in June 2017.

Deposits increased by 13% (SA) driven by strong customer support for the bank's investment and deposit accounts.

The bank's lending to home buyers seeking lower-value mortgages from FNB's Housing Finance business increased strongly by 11%.

These conditions placed greater emphasis on cost control with cost-to-income improved to 51.5% (SA). Costs increased 6% in the South African business and 7% when combining FNB SA with the African operations.

Greater efficiencies through reconfiguration of branches were achieved across the branch network with transaction minutes falling by some 20%, whilst, sales and advice minutes are becoming a larger component of branch activity. Efficiencies are further motivated by the bank's strong leadership in digital and electronic banking. The bank's e-race toward efficiencies is continuing to drive forward based on internal digitisation projects and customer-facing projects particularly in our App space.

FNB's relatively new Insurance business already has over 3.2 million active policies. With its significantly lowercost of acquisition, FNB Life has enormous potential to contribute materially to the bank's performance in coming years.

FNB Connect is exceeding original expectations. Currently, Connect has acquired almost 10% of our customer base who meet product qualification criteria. This is a significant achievement as all qualifying customers have existing agreements with other service providers.

The number of customers using the FNB Banking App has increased from 1.4 million in June last year to just over 1.8 million in June 2017. However, the volume of financial transactions has significantly increased (up 68%) from 59 million in June last year to just under 100 million in June this year.

While income from our International operations accounts for less than 5% of FNB's overall profit, strong negative macro-economic factors resulted in a 32% decline in profit before tax. There was a modest increase in advances of 3% with NPL's and impairments higher in line with expectations given the prevailing credit cycle.

Looking forward, a recovery from the Consumer segment is anticipated as product sales increase. The Business and Premium segments remain well placed for growth.

FNB's key innovative launches during 2016-2017

  • Instant life cover via digital platforms
  • NAV for home loans and vehicle management
  • Augmented reality on App
  • FNBy (FNB Youth) and FNB Fusion Premier Accounts
  • Conexis Mobile Phone
  • App 5.0
  • Modular Branch
  • FNB Pay
  • 48 hour cash accelerator

New offerings on the FNB banking App continue to enable FNB to build comprehensive data sets and continuously refine customer experiences. At the same time, the real value creation from offerings such as NAV CAR and NAV HOME is that it empowers customers with sophisticated and helpful tools and data to better manage their financial affairs. NAV HOME is able to research property information and enable home loans applications in conjunction with the GPS system on the customer's smartphone. NAV CAR was launched in April 2017 with the number of customers loading their vehicles onto NAV CAR rising to over 50 000 soon after launch. This enables automated payment of car licences, offers values of vehicles, and enables payment of traffic fines amongst other functionalities.

FNB Awards during the year under review

  • Ranked Africa's most powerful banking brand by Brand Finance Banking 500 Report 2017
  • Awarded SA's most valuable brand 2017 by Brand Finance
  • Bank with the Strongest Reputation - 2015 - 2017 RepTrak™ Pulse Survey
  • Awarded the 2016 Best in Customer Experience Award at the international Bank Customer Experience (BCX) Summit in Chicago, USA
  • Most Innovative Bank in Africa - 2016 African Fintech Awards
  • SA's Coolest Bank - Sunday Times Generation Next Survey 2012 - 2017
  • Best Internet Banking, Best Banking App, Best Cellphone Banking - SAcsi 2017
  • Voted the best digital bank, internet banking site and mobile banking experience in South Africa by SAcsi Survey 2016 and Columinate Internet Banking SITEisfaction Survey 2016
  • Best Internet Banking, Best Banking App (as a subset of the Mobile Banking category) - Columinate SITEisfaction 2017
  • Best Online Financial Services Platform 2016 in the PriceCheck Tech & e-Commerce Awards
  • Excellence in mobile banking - Lafferty Global Awards 2016.
  • Sunday Times Top Brands Survey #1 Business Bank 2013 - 2016
  • Awarded most innovative MVNO in the 2015 and 2016 Telecoms.com Awards
  • Globally recognized as SA's best foreign exchange provider by Global Finance World's best FX Providers 2017
  • FNB Islamic Banking awarded Best Islamic Banking Window 2017 at the Global Islamic Finance Awards 2017
  • Awarded Best Islamic Banking Offering by Banker Africa at the Annual Southern African Banking Awards 2016
  • BASA (Business and Arts SA) Chairman's Premier Award 2016 for the FNB JoburgArtFair.

FNB unveils SLOW XS Lounge in Lanseria


22 August 2017: FNB in partnership with Comair is proud to announce the latest addition to the award winning SLOW Domestic and International lounges which are acclaimed for offering an exclusive and up-market experience to qualifying Premium customers.

SLOW XS Lounge, based at Lanseria International Airport in Johannesburg, compliments the overwhelming growth and popularity amongst FNB customers of this exclusive bank proposition. On average we have 60 000 FNB customer visits to the SLOW Lounges on a monthly basis.

The new lounge is scheduled to start operating from 30 August 2017 and can cater to 100 guests at a time.

Chris Labuschagne, CEO of Credit Card at FNB says the expansion of the partnership with Comair into Lanseria Airport is aligned to our broader strategy to providing customers, business travelers and families the exclusive opportunity to experience one of the greatest aspects of travel - the tranquil respite of a luxury travel lounge.

"The uptake of SLOW Lounges has surpassed expectations since the initial partnership and launch in 2010," adds Labuschagne.

Despite the pairing down of certain services such as buffet catering, in-house spa and private washroom facilities, SLOW XS, while moderately-sized due to Lanseria Airports' capacity, has been specifically designed to offer a unique yet synonymous experience with all the lounges, and will cater for the diverse needs of travelers on the go, whether it's conducting business from a comfortable, chic yet professional 'out-of-office' working environment, networking, catching up with friends and family, or indulging in a good book while waiting for a flight.

The launch of SLOW XS follows the recent revamp of the new and improved lounge at O.R Tambo International Airports' (International Terminal) in Johannesburg, which is currently the largest, catering to 326 guests.

Alternate SLOW Lounges are located at Cape Town International Airport (Domestic Terminal), O.R Tambo International Airport (Domestic Terminal) and King Shaka International Airport (Domestic Terminal), while SLOW in the City is located on the corner of Rivonia and West Street, Sandton.

Access to SLOW Lounges is exclusive to qualifying Cheque & Credit Card clients across FNB Premier, Fusion, FNB Private Clients, RMB Private Bank, FNB corporate and business cardholders, as well as business class customers travelling with British Airways (operated by Comair) and Comair the Group's VIP guests.

For more information visit www.fnb.co.za or www.slow.co.za.

Money tips for first-time international travellers


29 August 2017: First trip abroad? Travellers should familiarise themselves with the different payment options while abroad to protect themselves from incurring unnecessary costs.

Anthony Grant, CEO of FNB Foreign Exchange says, "First time international travellers tend to focus on the trip itself and forget the alternative options available when transacting abroad. However, with a bit of forward planning there are areas where costs can be trimmed before jetting off."

Here are some money tips for first time international travellers:

Get travel insurance
Embarking on your international journey without travel insurance is not only risky, but can also be very costly in the long run. Travel insurance is important because should an unforeseen incident occur, such as a medical emergency or loss of luggage, you will be cushioned against having to dig deep into your pocket to cover these costs. Apply and read through your travel insurance terms and conditions to ensure you are adequately covered for all types of emergencies.

Order your foreign currency before you leave
Having currency as one of your methods of payment makes your life just a little bit easier as you can pay in cash for things like a coffee at the airport while you wait for your connecting flight, or taxi fare on route to your accommodation. Currency rates fluctuates all the time so it works out more cost effective if you get your foreign currency before you leave. Withdrawing cash or exchanging currency while you are travelling could turn out to be quite costly due to changing market conditions between you leaving and arriving at your destination

Get a Travel Card
There are many advantages to having a travel card handy; not only do you mitigate the risk of carrying large amounts of cash but you can load various currencies onto the card from your local bank account. The 4 currencies available are USD, GBP, EUR and AUD. The card enables you to swipe at merchants and withdraw cash around the world where you see the Mastercard acceptance mark. It is the ideal budget management tool because you only spend what you load. FNB customers can order the Multi-currency Cash PassportTM online and have it delivered to their door and also top up the balance via FNB Online Banking while travelling if more spending money is needed.

Notify your bank
It's important to notify your bank about your upcoming trip, the various locations you will be visiting and the duration of time spent away. This will help the bank notice any suspicious activity in your account such as fraud and they will be able to contact you timeously. For example, if you are out of the country and the bank picks up a transaction taking place locally this will automatically raise a red flag.

Stay connected
While travelling overseas you can stay connected via the FNB Banking App, all you need to do is activate roaming and make sure you have a secure internet connection. This means you can continue to bank when you need to, as well as receive SMS alerts helping you monitor your expenses while travelling.
Happy travels.

What to consider when switching your home loan


21 August 2017: If you ever find yourself pondering the prospect of switching your home loan to another bank, it is essential that you do your homework.

Stanley Mabulu, Head of Sales at FNB Home Loans says lenders have made it easier for consumers to switch home loans, provided that they meet all the criteria and requirements.

"There are many reasons why consumers consider switching, such as getting better service and value, favourable interest rates, consolidating finances when getting married and long term cost saving, amongst other reasons," says Mabulu.

However, before embarking on this financial journey, there are important factors that consumers should consider to ensure that they reach their goals and get the best value possible from their bank:

  • New home loan - when switching, you are technically applying for a new home loan with the lender of your choice.

    As a result, a full loan application has to be completed, followed by a standard affordability and credit assessment which is line with the National Credit Act (NCA) requirements.

    "If your finances are not in order, there is a high likelihood that your application may not be successful," says Mabulu.

  • Costs - fees that you would normally incur for a new home loan, such as the initiation and bond registration fees are also applicable when switching.

    "Because you are taking up a new home loan, the bond you had registered when first buying your house should be cancelled at the Deeds Office, and there will be additional fees associated with this," says Mabulu.

    Furthermore, you are also likely to be charged an early termination fee by your current home loan provider, should you fail to inform them 90 days in advance that you are cancelling your bond with them.

    In order to take the angst out of switching, lenders often give customers discounts or take on some of these fees to make the process easier. For example, FNB pays bond registration attorney's fees up to the current bond amount and debits the initiation fee to the bond account, so that customers won't have to pay it upfront.

  • Switching to your primary bank - it is advisable to bank with the provider that has bonded your home, as this could give you more value and provides flexibility in managing your finances.

    "Consumers who have more than one home loan with different lenders also find it valuable to switch, as having their property portfolio with one bank makes it easier, cost effective and provides them with more value in the long-term," adds Mabulu.

  • Shopping around for the best deal - it is standard practice for lenders to entice customers with irresistible offers to switch. However, when planning to switch make sure that you have consulted all major lenders and weighed the value and benefits offered before making your decision.

"Switching your home loan can benefit you in the long-term if carefully considered and carried out in line with your personal financial plan," concludes Mabulu.

Uphill ahead, but don't panic


30 August 2017 - Mid-month calculations indicated that we might expect a sharp increase in fuel prices early in September. The increase will have a direct impact on the agricultural sector in South Africa as cost of production and transportation will increase, which may go as far as impacting retail prices.

Information from the Central Energy Fund (CEF) shows an under-recovery of between 57-60 cents/litre on petrol and 47-49 cents/litre on diesel.

"The combined depreciation of the exchange rate and increase in the international price of crude oil and commodities has led to a situation where if the cost of fuel remains the same, fuel distributors in South Africa will essentially be trading at a loss or in economic terms, experience an under-recovery. To avoid this, prices will have to increase," says Dawie Maree, Head of Information and Marketing at FNB Agriculture.

The exchange rate and commodity price influence the fuel price differently. The movement in the exchange rate is responsible for only an average of 4 cents/litre of the under-recovery, while the bulk is due to the movement in international product prices. The latter is responsible for 53-55 cents/litre under-recovery in the case of petrol and 43-44 cents/litre for diesel.

"The increase will be sharp, at an estimated 5%. For agriculture, September is the start of the seedbed preparations in the eastern parts of the maize-growing areas of South Africa. Farmers will have to increase spend on diesel, one of the major input cost lines for a grain farmer, due to a higher price. Secondly, the transport of agricultural inputs, such as fertilisers and seed will also be negatively impacted," says Maree.

For the consumer the direct impact of the fuel price increase will decrease their disposable income. What will balance the current upward swing in cost is that food inflation will be decreasing due to the great season agriculture is having in the year thus far. We might also expect interest rates to be cut further later on in the year, given the improved inflation expectations.

"It may be uphill for the next while but we must ride the wave. The advice here is - don't panic, it too will pass," concludes Maree.

DIY - budgeting on the go


31 August 2017 - With the change in economic conditions, experts advise and caution consumers against overspending and not saving for the things that matter.

However, there are tools that can help you manage rising household and unnecessary expenses without compromising your goal to live a comfortable life. Creating a simple budgeting template that encompasses your daily and household expenses will help you save for that pair of leather boots, that special family holiday that your family deserve or your child's education. Making small saving adjustments will eventually add up overtime and benefit you in the long-term.

"Budgeting is not an exclusive activity. It's quite simple if managed on a monthly basis and if you have a defined set of goals and understand where your expenses fit in," explains Ester Ochse, Product Specialist, FNB Financial Advisory

Ochse provides a few guidelines to creating your own personal budget:

  1. Know what your monthly income is - Work with your final take home salary when creating your budget. Make note of your monthly salary and money that you have after all your monthly deductions. This includes your pension fund, UIF and medical aid (if applicable).
  2. Look at your daily spending - Track your spending by looking at your online transactions or keeping your slips in a file. Doing this will help you identify spending irregularities and also where you can cut back.
  1. List all your expenses in an excel spread sheet - include your fixed and variable expenses. Fixed expenses include things like rent; car payments etc. and variable expenses are those that change on a monthly/weekly basis like groceries, entertainment. Listing these will help you track your monthly expenditure and help you decide what to leave in and what to cut-out.
  2. Evaluate your expenses and set goals - Make a list of your short and long term goals that you want to accomplish in a year. By identifying these goals, you can start budgeting appropriately and identifying things that you will need in the year.
  3. Create your financial plan - With your budgeting list; you will get an idea of what you will spend in the upcoming months and what you can cut out. This plan will serve as your blueprint to your financial goals.
  4. Change habits, "buying behavior" - We tend to overspend and buy things out of wants instead of needs. Your budget will also help you understand your monthly spending habits.
  5. Update and check on an ongoing basis - Once you start your budgeting process, don't stop. Review and look at your budgets regularly to ensure that you checked in and that you are not overspending on all levels.

Budgeting is an important process in your money management journey. "Taking heed of the above steps will help you identify your unnecessary spending habits and also help you achieve your goals," concludes Ochse.

The catch-22 of the depreciating Rand and its impact on tourism


28 August 2017 - A decrease in the Rand's value usually has a positive off-spin for tourism in South Africa (SA) because foreign currency goes further when compared to other long haul destinations. There are however, a few grey areas that do not make this notion as cut and dry.

Making the correlation between a weak Rand and increased foreign tourist numbers:

In 2015, tourism in SA declined due to factors including visa processing capacity constraints, unabridged birth certificates and the Ebola virus among the many. In 2016 the Rand took a knock in value and tourist arrival numbers improved, SA received over 10 million tourists, a 12.8% increase on 2015 numbers.

Aside from some relaxation in visa regulation requirements, the depreciation of the Rand can be cited as a contributing factor to the increase in foreign tourists to SA.

"The challenge of the weaker Rand is that it's a short term but much needed windfall for the industry. However, businesses' strategies are geared to more long term sustainability thus will continue to market their product offerings accordingly cy," says Charnel Kara, Tourism Specialist at FNB.

The catch-22 -Rand depreciation vs running costs in tourism:

Hospitality related businesses usually hedge the Rand against the foreign currencies at a particular level, thus, foreign tourists coming to SA benefit from a stronger currency against the Rand at a particular point in time.

"Currency fluctuations are not under the businesses' control. Business should still take cognisance of increased input & operational costs that may dilute any sort of benefit from the depreciated Rand. these costs include hikes in food costs, fuel, administered price like electricity, gas and property rates - these are costs absorbed by business owners and are usually ahead of inflation, they also usually result in a negative effect on the bottom line ," says Kara.

Businesses innovation to solve the catch-22:

Hoteliers and tourism related businesses are mitigating costs by implementing, inter alia, green and energy saving concepts, innovative pricing and revenue management, low debt gearing levels, creative hotel/tour packages, loyalty cards, aggressive destination marketing and collaborations with relevant government departments.

Which businesses win and which lose from the depreciation of the Rand?

Essentially, a weaker Rand makes imported items and overseas travel more expensive for South African consumers.

Businesses that may feel the negative effect of a weaker Rand are those focused on the outbound travel market - South African travelling outside of SA. Those most likely to benefit are those in the Meetings, Incentives, Conferences, and Events (MICE) sectors - as it will be cheaper to host a conference in South Africa.

A market that ought to benefit from the weak Rand is the luxury safari market. At first thought the cost of a luxury safari holiday may seem like a dream. It is important to bear in mind that luxury safari lodges often offer rates that are fully inclusive of meals, accommodation, game drives etc. In addition, neighboring countries such as Botswana, Zimbabwe price their safari packages in US dollars, making South Africa a more attractive destination in terms of value for money.

What can business do to mitigate this?

Avoid hiking rates - Businesses should avoid hiking rates as it affects the performance of the industry as a whole, especially for over-geared businesses.

Price competitively: To benefit from the weak Rand, businesses should price attractively. As an example selling block or group bookings at a slightly lower rate than singular bookings, or perhaps charging less for longer stays. It is one way to ensure 'bums in beds' where there is potential to spend more on other offerings.

"Decreasing operational costs assists in improving a business's bottom line. Managing costs balanced with achieving the right occupancy level at a competitive rate is where businesses will win and remain sustainable over the long term" concludes Kara.

Disrupt or optimise - When to choose which approach to innovation


21 August 2017 - Every 60 seconds, the world creates an average of 98 000 tweets, 695 000 Facebook updates, 11 million instant messages, 168 million emails and over 1,820 terabytes of data. The modern day business has to search through all of this to find trends to build products and services to respond to, so more and more, business analysis is moving away from the "disruptive innovation" fad and more into a balanced approach where business uses data and information to decide on whether to optimise the systems and models they already have, or to totally disrupt markets.

"We often view innovation from a funnelled perspective, where we perceive disrupting markets with new propositions as the only form of innovation. This is not true. Innovation should not simply always entail disruption, sometimes optimisation is the ultimate form of innovation simply because it looks to solve the core problem by fixing what is broken with it rather than replacing it all together," says Dr Yudhvir Seetharam, Head of Analytics at FNB.

Seetharam believes businesses need to first have a deeper understand of how optimisation differs from disruption.

Disruptive innovations are defined as technologically straightforward innovations that are often not appealing to the mainstream market at that time. The first automobile was not mainstream as people back then were used to horse-drawn carriages. The telephone replaced the telegraph, the PC replaced the typewriter and Wikipedia replaced encyclopaedias, all these fit the definition.

"Businesses that survive and thrive need to understand what actually drives their business - demand and supply factors; and also be able to create customisable sales conversations to enhance customer experience. These all talk to optimisation. Disruption would then come in the form of extracting insights from data, combined with research to build new business models and enable experimentation of new ideas," explains Seetharam.

Successful implementation of disruptive ideas often comes with viewing data as a flow of information as opposed to at a point in time - do not view each customer event as an isolated incident, but rather consider the entire lifecycle of that customer to enhance your next interaction with them.

Essentially, there needs to be a paradigm shift in the approach to the use of data in informing decisions. Disruption may not be the most ideal or cost effective approach, even though it is the current talk of the town. What businesses may have to consider going forward is that the successful use of data and analytics relies on data not being considered an IT function, but rather a business function that requires IT input and support.

Once data is viewed as a function that can inform all decision making in a business rather than reserved to a single business function, a business will achieve a more practical approach to making business decisions.

"At the core of it all though is that business thinking needs to start moving away from using data simply to innovate through disruption. In most cases, the most effective way to innovate is to use data to understand what is currently not working and simply optimise that, " concludes Seetharam.

Building wealth through entrepreneurship


23 August 2017: A common discipline that high-net-worth individuals share when building and sustaining wealth for future generations is the appreciation for entrepreneurship.

Eric Enslin, CEO of FNB Private Wealth and RMB Private Bank, says almost every wealth management strategy encompasses some form of entrepreneurship.

"For families who have already made their fortunes, emphasis is often placed on passing on legacies to a younger generation of leaders who will be responsible for breathing new life to well established corporations or scaling high growth potential businesses to new levels of growth," says Enslin.

Entrepreneurship in this context can only be successful if a solid wealth management plan, which encompasses goals and aspirations, has been established. When executed correctly the model and principles can be replicated across multiple generations.

Enslin says wealthy families abide by four common principles when using entrepreneurship to build prosperity:

  • Building a saleable asset - the challenge is usually not attracting investors to raise capital in order to start a business, but rather leveraging available funds and intellectual capital to build a profitable venture that can be sold for a premium.

    Many wealthy families go into business with an end goal in mind, either to sell the business for a return, raise money through mergers and acquisitions, list the company publicly or pass it on to future generations. The business is often started with an exit strategy already formulated.

  • Diversification - by being active and having a stake across an entire value and supply chain of a particular industry, these entrepreneurs are able to diversity and overcome short term issues that may severely impact profit margins.

    For example, wealthy families in the commercial farming industry were more resilient to the recent drought conditions that impacted the whole country, through their exposure to the entire farming value chain.

  • Long term potential - through experience these families understand that wealth cannot be built overnight and it may take years or even decades before a venture accumulates returns.

    Unlike some SME's who may use entrepreneurship for instant gratification, making ends-meet or gaining financial freedom, wealthy families use businesses to leave a legacy.

  • Accountability - as the old adage goes "with great power comes great responsibility" - successful heirs appreciate the responsibility that comes with inheriting and sustaining wealth, as well as risk of it diminishing over time.

    According to a study published by the Williams Group wealth consultancy in 2015, 70% and 90% of wealthy families lose their wealth by the second and third generation, respectively.

    Notwithstanding the appreciation for risk taking in entrepreneurship, proper due diligence should take precedence before any business venture is pursued.

"Lastly, while wealth advisors work behind the scenes, the contribution they make in helping families to structure their businesses, estate planning and succession planning is invaluable. As a result, every business decision or new venture undertaken has to align with the broader wealth objectives," concludes Enslin.

Become your own big 'investor'


24 August 2017: 'Investing' is a concept that is often misunderstood as requiring extensive financial and industry knowledge coupled with years of experience. This for many is seen as a major stumbling block as opposed to an opportunity to learn the 'art of investing'.

"There is no right time to learn about investing, than now" says Ester Ochse Product Specialist at FNB Financial Advisory. "Anyone can invest as long as they are willing to stay in it for the long-term and match their risk appetite with the ideal investment choices. Even if you are investing a small amount on a monthly basis, making the right investments will help you grow your money and benefit you in the long-term."

Investments empower you to make informed decisions about your financial future. By just understanding the process; you are one step closer to achieving your goals.

The market is full of different types of investment options and choosing a suitable product may be daunting for the novice investor, says Ochse. "Research and ask for investment advice from a qualified and trained professional, as this can help you influence your investment decisions on all levels."

Patience, resilience and commitment are needed through your investment journey. "It's about you and your needs and wants. Starting an investment portfolio, be it big or small, requires some form of commitment and most importantly, you need to have a goal in mind before starting to invest."

Having a goal deters one from making impulsive decisions such as deciding to sell to use the money for something else. It's important to stay focused on the end goal, if the aim is to stay invested for five years then it's best to remain committed and stay invested for the long-term. It's quite common that people start investing without having established the reason or aim for starting an investment.

She adds that, "Having a clear investment strategy helps in setting goals and timelines. It also helps you to understand your risk appetite and most importantly, the amount that you can afford to put away. There are risks associated with investing, but if done correctly the rewards will be great."

Ochse concludes by saying, "Attitude and tenacity are key in driving investment goals - Remember at the end of the day you are investing for yourself and your future."

Next generation of FNB-branded smartphones marks evolution of digital journey


27 September 2017 - Today, First National Bank (FNB) asserted its status as a digital pioneer by revealing the next generation of its FNB-branded smartphones, the ConeXis A2 and the flagship ConeXis X2 to be available from 2 October 2017.

In addition, the bank announced its new data and voice packages, including the highly competitive FNB Connect Ultimate Voice package as well as a 'Double Your Data' promotion deal on once off data bundles.

Dr Christoph Nieuwoudt, CEO of FNB Consumer Segment says, "It's been over two years since the launch of FNB Connect and roughly a year since FNB became the first bank in Africa to launch its own branded smartphones. We are incredibly excited about our digital journey and ongoing commitment to empower our customers with tools to fully embrace an end-to-end digital experience. We are enabling digital migration at an affordable cost to emphasise our focus on customer centricity."

Len Pienaar, CEO of FNB Connect says, "Listening to customer needs helps us to provide a meaningful experience. The next generation of FNB ConeXis smartphones provides a premium experience at an affordable cost, and our competitive deals offer inclusive value for our Retail banking customers. More importantly, the integration of Connect into FNB's banking platforms helps customers to exercise full control over their telcospend and could potentially get the respective smartphones for free if they are on eBucks reward level 5."

The flagship FNB ConeXis X2 has a sleek design, metallic finish, 32GB storage capacity, multifunctional fingerprint reader and enhanced dual rear camera capabilities with 3D photo shooting. The X2 is enabled with Tap & Pay functionality using Near Field Communication (NFC) and has a pre-installed FNB widget that allows instant message viewing, viewing of Connect subscription usage balances and access to perform a quick recharge should the need arise.

The A2 also has a metallic finish with a 4.5 inch display and 8GB memory powered by an improved 2000 mAh battery. Both devices are preloaded with FNB's zerorated banking App and calls from Connect SIM subscribers to the FNB contact centre are free, thus providing means to bank anywhere and at any time. The FNB Connect Ultimate package, announced at the same time as the smartphones, allows subscribers to make calls to any network for R399 with 4 000 voice minutes.

FNB Connect subscribers will also enjoy a 'Double Your Data' offer for any once-off data bundle purchase for the ConeXis A2 or X2 respectively.

Dr Nieuwoudt says their latest move signals ambitious long-term plans to make Connect a telco provider of choice for FNB customers. "The seamless integration of Connect into our banking platforms provides a unique proposition for our customers. Banking and telco services have long become part of every customer's life and we are committed to enabling customers to extract maximum value."

FNB Connect has sold 487 000 smart devices as well as 75 000 ConeXis A1 and X1 smartphones.

Do your bank's rewards pass the 'value test'?


06 September 2017: Rewards in banking have become part and parcel of the 'value package' that consumers expect from their banks.

"Rewards are taking on a new paradigm; our customers are getting savvier about how to get real value from the brands they support. It's imperative that by creating tailored programmes, we allow our customers to engage with us, especially during tough economic times," says Johan Moolman, CEO eBucks Rewards.

On paper, it seems as though consumers are spoilt for choice when it comes to rewards programmes offered by banks, but according to Khathu Ramoliko, Head of FNB Gold, you need to scrutinise whether the rewards you get on your bank account pass the 'value test'.

"There's no better time than the present to test whether your bank's rewards offer you real value. Currently, most consumers are faced with diminishing disposable income and need to ensure that every rand goes a long way. In times like these, the value you get from your rewards programmes could be the difference between being stuck on the side of the road with no fuel or getting a full tank of fuel by simply banking the right way," he says.

Khathu says ask yourself the following questions to test whether the rewards you get on your bank account offer real value:

  • Do you pay a joining fee for the rewards programme? While some rewards programmes are free to join for qualifying customers, some banks charge you a fee to join their rewards programme which is counterintuitive as one could ask whether it is really a rewards programme if you have to pay for it.

    Khathu says FNB Gold customers enjoy FREE membership to eBucks Rewards which they can use for fuel, shopping, data/airtime and travel.
  • Do the rewards expire? Rewards that expire put consumers under unnecessary pressure because you are always racing against time. For many customers, the ability to extract value from their bank rewards on a frequent basis is a crucial part of household monthly budgeting. However, it's even better when you are able to monitor them via a banking app like FNB customers, without incurring data charges.
  • Do you get further discounts at rewards partners? The purpose of being part of a rewards programme is to maximise the benefits, therefore, a programme that allows you to use your rewards across a number categories such as groceries and transportation is much more beneficial. FNB Gold customers have access to over 40 online and instore partners where they can access great deals as well as benefit from discounts (up to 40%, based on their reward level) on promoted vouchers and products on the eBucks Shop. They are also given an eBucks card they can use to purchase goods at official partners.
  • Are the rewards easy to understand, and can you easily change behaviour in order to earn more rewards? It's easier to extract value when a rewards programme is aligned to your banking behaviour. For example, FNB Gold has made it easier for its customers qualify for eBucks rewards and move up the reward levels. The rewards programme for FNB Gold customers is linked to normal banking behaviour and the rules are structured to assist a customer to bank in a more efficient way. FNB Gold customers can maximise their rewards by making sure they deposit their salary in their bank account, make use of the FNB Banking App to perform transactions, use their FNB credit card for all their card purchases and making use of FNB as their primary bank for in terms for their loans, savings and insurance needs.
  • How much have you received and can your rewards offset your banking fees? This is the ultimate 'value test' for a rewards programme. The bottom line is that you must be able to quantify the amount of value you're getting. If you have been with the same bank and continue to make use of their rewards programme, use your budgeting time to strictly scrutinise the rand value of what you've been getting back. After doing all the right things, a value-packed rewards programme should accumulate enough rewards or value to offset what you pay in fees.

    Khathu says this is a possibility for FNB Gold customers who follow the eBucks Rewards programmes to the letter. He says the earning potential far exceeds the R105 bundled monthly account fee that customer pay.

FNB Gold customers are among millions of FNB customers who benefit from making their money go further every month with eBucks Rewards.

Khathu says they continue to encourage customers to take advantage of this free benefit. "Customers who are taking full advantage of this benefit are always surprised of how valuable it is, especially now because times are increasingly getting tougher for consumers. Even though interest rates have decreased, budgets remain very tight so consumers need every bit of help they can get," concludes Khathu.

Your WILL, your life
Update your Will today


12 September 2017 - The importance of a Will cannot go unnoticed as it is probably the most important document that you will sign during your lifetime. A Will provides you with the opportunity to give clear instructions on how your assets and wishes are to be dealt with when you pass away.

"It is estimated that approximately 74% of South Africans die without a proper Will in place," says Vijay Morarjee, CEO FNB Fiduciary. "Fear and acceptance of death is a grave reality for all of us. In these instances a solid Will ensures that your liabilities, assets and your family is taken care of."

A Will is a legal and binding document that will benefit you and your family in the long term. "When a person dies without a Will, they forfeit the privilege of deciding what should happen to their estate. The estate then gets allocated in terms of pre-determined legislated guidelines, known as Intestate Succession. In other words, that person has no say in how the estate should be apportioned," explains Morarjee.

"A Will forms the cornerstone of your financial plan and is an essential step that ensures the interests of your loved ones are protected and secure." Ensuring that your Will and estate planning is at optimal health is important. According to Morarjee, "a Will gives you the opportunity to legally appoint heirs of your choice, allows for the nomination of a guardian for minor children, enables you to nominate an executor of your choice and plays an important part in your estate plan."

Your Will should be reviewed at least once a year to avoid risk and unnecessary errors. Many assume that completing a Will is a costly activity, but institutions like FNB can assist, free of charge "Expert advise in the context is important when formulating a Will as there are various legal implications if the estate is not planned, provided for, and executed properly," concludes Morarjee.

National Wills Week takes place from the 11 -15th of September, with a key focus on the importance of having a valid Will in place.

Should you pay off your home loan early?


02 October 2017: With Statistics South Africa (StatsSA) having revealed that a majority of consumers have settled their bonds, many home owners will be anticipating the prospects and viability of paying off their home loans early?

Calvin Ndlovu, Head of Operations at FNB Home Loans, says there is no correct or incorrect answer to the question on whether you should pay off your home loan early or not.

"It all depends on your individual circumstances, longterm objectives as well as how you plan to structure your own or family's finances," explains Ndlovu, as he delves deeper into the advantages and disadvantages of settling a home loan early:

Advantages

  • Early settlement can help you save on interest, allowing you the freedom to pursue other ventures.
  • If you are approaching retirement and are planning to settle in that particular home, it is advisable to pay it off.
  • You eliminate the risk of defaulting if you are self or temporary employed.
  • Provides a safe haven in tough economic conditions, when there is a lot of uncertainty.
  • Having more disposable income at hand can help you put more towards your short-term or retirements savings.

Disadvantages

  • Because a home loan typically offers you the cheapest debt available, you can save a lot of money in interest by paying off other debt first, such as personal loans, credit cards and car finance.
  • If you are currently renting out the property you can save on tax as interest paid on your bond is tax deductible.
  • Depending on your goals, diversifying by saving and investing the money elsewhere could be more ideal.
  • You will no longer have immediate access to debt at a low interest rate which could be used for renovating, emergencies or personal cash flow management.
  • As a property investor you can use the extra cash to put down a deposit on another property and still have access to funds in your bond.
  • You will be liable for bond cancellation fees and may be charged additional interest if you fail to notify your bank 90 days in advance, that you are planning to close your home loan account.

"Before making this important decision, seek advice from an expert or financial advisor about your personal financial goals in order to make a choice that best suits your needs," concludes Ndlovu.

Finances should be a joint effort in a household


02 October 2017: Who manages your household finances? The management of finances should not be seen as the job for a man or woman in a household, but a joint effort between partners.

"Partners need to work together in order to achieve their family's financial goals. Being equally involved in household financial matters makes it easy for partners to plan and work towards a common goal such as securing comfortable retirement," says Eunice Sibiya, Head of Consumer Education at FNB.

Sibiya says in most instances, women allow men to take complete charge of long-term financial planning while they only focus on basic day-to-day tasks. This could be very risky because even though you are partners, as a woman, you still need to inform your own financial destiny and legacy.

She shares important factors for women to consider in order to be more involved in the household's finances: Plan for your retirement: Failure to plan early for retirement will put you at a disadvantage if you take into account that:

  • The retirement age for women is 60 years whereas it is 65 for men. This therefore leaves women with fewer years to save for retirement
  • Generally, women outlive men meaning that women would need to stretch their finances for some 30 years after retirement. Making it more important for women to become financially astute.

"It's therefore critical for women to take this into consideration when making long-term financial decisions," says Sibiya.

Plan your finances: Be involved in family finances and set clear goals with your partner that you can both work towards. This will ensure that you avoid unnecessary debt and continue providing financial support for your family.

Spend mindfully: Be careful not to be distracted by instant gratification and keeping up with the latest fashion trends. Be cautious about what this can potentially do to your pocket and your family's financial wellbeing. Review your finances regularly: It is highly recommended that you review your saving and investment strategy at least twice a year to ensure that your savings are in line with inflation. This will help ensure that you top up your retirement savings if you see that there is a need to top up and be able to meet your retirement goals.

"Good financial habits and having long term thinking as a family is crucial in ensuring that you retire comfortably," says Sibiya.

"Watching your money grow every month is a great motivator to keep yourself on the right track towards achieving your financial goals. Don't be tempted to spend your hard earned savings on non-essential goods as that will set your family back financially," Concludes Sibiya.

What happens to life cover after divorce?


09 October 2017: Many individuals who get married place emphasis on taking out life cover to protect their families in the unfortunate event of death.

However, when going through the emotional stages of a divorce, reviewing and updating your life policy can often be the last thing on your mind.

Lee Bromfield, CEO of FNB Life says, similar to the process of entering into a marriage contract, partners should factor in unfortunate circumstances like a divorce when taking out life insurance for their families, especially if there are children involved.

He unpacks five options available to consumers after a divorce:

  • Changing beneficiaries - if you are no longer financially dependent on each other, you should review and update your beneficiary details. This is to ensure that the correct beneficiaries are paid out should anything happen to one of you.
  • Banking details - individuals who are paying their policies from a joint account should contact their insurer and update their banking details, to avoid the policy lapsing if premium payments are no longer honoured.

    If your policy lapses, you will no longer be guaranteed the same premium on a new policy, due to factors such as age and your current health conditions, amongst other factors.

    Similary, if you were financially dependent on your partner, you can either takeover the policy payments or discuss the way forward during your divorce settlement negotiations.
  • Financial need of children - when there are children involved, an agreement should be reached by both parties in order to protect them financially should both or one of you no longer be around. The decision taken will be based on your individual circumstances as well as estate planning arrangements.
  • Sum insured - your financial situation may change after a divorce, making it necessary to adjust your life cover amount to cover any shortfall.
  • New policy - individuals who did not have a policy of their own while married should now consider taking out their own policy.

"Failure to review and update your life policy after a divorce, may not only lead to family disputes and costly legal battles, but those who are dependent on you in financial distress," concludes Bromfield.

FNB innovation helps customers save R1 billion


10 October 2017 - Despite the tough economic environment which makes it difficult for consumers to put money away for rainy days or specific goals, FNB has leveraged innovation to help its customers save over R1 billion in the past 14 months from small change when shopping.

'Bank Your Change', a free feature which can be activated by all FNB customers with a transactional bank account, enables them to save a portion of their change every time they swipe their bank cards to purchase goods or services.

For example, when a customer buys goods worth R52.50 using their FNB cheque or debit card, the purchase amount is rounded up to the nearest R1.00, with the total amount R53.00 debited to their bank account. The difference of 50c is automatically transferred and saved in their Savings Account, which is offered alongside a customer's transactional account at no additional cost. Customers have the ability to choose the denomination to which the transaction will round up to; namely, to the nearest R1; R5; R10; R20 or R50.

Ryan Prozesky, CEO of Value Banking Solutions at FNB says, being able to develop products and services that add value to our customers and can help solve for some of the critical problems they face, such as adopting a savings culture, is at the centre of our innovations.

"Bank Your Change has gained prominence amongst our customers by conveniently and effortlessly enabling them to save money, without even thinking about it," adds Prozesky.

This innovative tool replaces the traditional piggy bank saving model where consumers had to physically drop in change and take it to the bank once it is full.

"The exceptional growth of the 'Bank Your Change' offering is aligned to cash transaction trends we are seeing in the market. In the past year alone, there has been a strong movement towards digital platforms, with cards swipes increasing by 12%," says Prozesky.

Apart from the ease and convenience, there is also a healthy reward for saving more using 'Bank Your Change'. FNB transactional account holders with a Savings Account will earn a rate of up to 6.3% interest per annum on all the money saved in their Savings Account.

In addition to the change which is banked in the Savings Account, customers can also make additional transfers into this account free of charge and withdraw it at anytime, without having to give the bank notice.

For more information about how to activate the 'Bank Your Change' benefit or to learn more about the Savings Account, visit www.fnb.co.za

FNB Business affirmed best in SA - 5 times over


28 September 2017 - FNB Business has again been voted "Top Corporate Bank" in the 18th installment of the annual Sunday Times Top Brands survey, this makes it the fifth year in a row that FNB Business wins top honors in the survey.

The Sunday Times Top Brands survey is the leading barometer of consumer and brand sentiment in the country.

Mike Vacy-Lyle, CEO of FNB Business shares his jubilation on the news. "Winning the accolade five times shows incredible consistency in our strategy which is all about putting our clients first. We strive to make sure that we are relevant to the markets that we operate in, and it's important to us that we can help businesses navigate their toughest moments," says Vacy-Lyle.

FNB Business continues to pioneer products and services that have taken the angst out of South Africa's entrepreneurs, from providing free accounting services such as Instant Accounting, online documents reservation services, and forming a partnership with the CIPC to digitise SA's business registration processes.

"We've been on this road with many South African entrepreneurs who have found a home with FNB Business. Going forward, we have some exciting developments that will take us further in our digital journey, and through this we will continue to launch amazing services, products and partnerships, all aimed at taking the anguish out of doing business. Our message to entrepreneurs is that we understand that it isn't just business to them and that is why we remain committed to providing meaningful solutions to help them grow. We are very grateful to our amazing clients," concludes Vacy-Lyle.

Going digital cuts the costs of starting and running a business


26 September 2017 - Being online as a business is no longer an option, it is a requirement if your product is to meet your consumers where they are, and the growth in technology has made it so easy to be online, you can practically start and run your business for free.

Over 92% of South African adults own cellphones, of that, 69% are smartphones. The average user of a smartphone spends over three hours a day on the internet and a further two hours plus on social media - Making online a worthwhile space to meet the consumer.

Mags Ponnan, head of the Business Incubator & Customer Value Propositions at FNB Business shares a basic cost effective toolkit that your business can implement.

Business registration - The relationship started by FNB and the CIPC allows entrepreneurs to apply and launch their business through a bank (applying for a business account at the same time) has been extended to all the banks now, making it easy to do this from the comfort of your own home.

Website - One can buy a domain name from as little as R 79. You can then host a site for as little as R45 per month; these usually come with an email linked to the domain. If you don't have that sort of money, you can use free online platforms that allow you to open and run a website for free.

Communications - Social Media platforms are free, pair that up with apps that allow you to call, message, and conference at next to nothing and you are able to be in contact with clients online while keeping your operating costs for business communications at a minimum.

Advertising - The rise in digital has allowed for affordable and targeted advertising at a fraction of what you would pay for TV, radio or print. R500 - R2000 could buy one thousand impressions on a busy website, far less then that could buy you targeted campaigns on platforms such as Facebook too. The trick is to also allow the customer to be redirected to your home website and ensure that the process for him to take up the product to be really easy.

Online payment gateways - there are numerous payment gateways that can be linked to your website to sell your product online; the cost per transaction is also very affordable.

Accounting services - Platforms such as FNB's Instant Payroll, Instant Invoicing and Instant accounting solutions all enable a business to keep professional financial records at no extra cost to the entrepreneur, making it easy to pay staff and manage incomes and expenditure on their business portfolio.

"Effectively, the use of digital enables a business to drastically reduce the cost of operating by taking away the administration angst and reaching a greater number of entrepreneurs over wider geographical area, which in turn frees you up enough to spend time fine tuning your business offering," concludes Ponnan.

Manage your finances this spring


26 September 2017 - "Spring has sprung and while we looking forward to some time-off during the summer holidays, we should maybe start looking at how we plan our finances for 2018," says Ester Ochse, Product Specialist FNB Advisory.

2017 has been characterized by uncertain economy conditions which continue to affect the financial situation for many consumers and businesses. "In some instances, this causes financial gaps which contribute to a culture of people living way beyond their means and getting trapped in a cycle of short-term debt," says Ochse.

She adds that, "Financial literacy education from an early age is vital to ensure proper management of debt and boosting savings. On many occasions we make hasty and impulsive buying decisions that are not necessary and don't benefit our lifestyle. Understanding the difference between needs, wants and responsibilities is key in changing buying behavior and at the same time will help elevate the importance of money management from a young age."

Ochse it's important to re-evaluate and refresh the way you use money on an ongoing basis. Not only will help in the long run but also help you be more organised and disciplined. She explains that consumers should be able to get finances in order this spring through these easy steps:

  • Review: Compare budgets from last and this year for wasteful and unnecessary expenditures. Base your financial decisions on your needs, wants and responsibilities.
  • Reuse and Recycle: Try to be creative and recycle what you have to the maximum instead of throwing it away. Or alternatively, trade-in the item for some cash which you can save for something else in the future.
  • Reduce: Your debt and unnecessary household expenses. Focus on things that matter like your child's education, that special family holiday, your retirement or even household groceries that we often take for granted.

Being mindful with finances is important. "It is a good starting point which ensures that you look at your finances holistically and not as just another chore in your daily life. Planning, ongoing research and evaluation on your spending habits will help you financially and in the long-term," concludes Ochse.

Macadamia, a dark horse in SA agriculture


21 September - The demand for suitable land for Macadamia nuts production has increased sharply and supplies of plants from nurseries are reportedly tight with orders almost two years ahead. Macadamia nuts are without a doubt, the dark horse in South African (SA) Agriculture.

"The shear growth in this sector makes it a product worth watching, it is more than doubling in organic growth on a year to year basis and with that are new jobs and income streams finding their way into the sector," says Paul Makube, Senior Agricultural Economist at FNB.

Areas in SA that produce macadamias - In terms of market share, the area between Hazyview and Barbeton in Mpumalanga is the largest planted area and accounts for 70% of new plantings. This is followed by the area between Levubu and Tzaneen in Limpopo, and the coastal areas of KwaZulu-Natal. In neighbouring countries, macadamia nuts are produced in Swaziland, Malawi and Zimbabwe.

Annual production - It is estimated that 700 farmers are involved in growing macadamia nuts, supplying 10 cracking factories.

"In terms of output, the industry has seen an exponential growth in the last 10 years, growing production from 4,600 tons in 2015 to 38,000 tons nut in shell (NIS) in 2016," says Makube.

Export quantities - The industry is largely exported driven with more than 95% of the annual production shipped to international markets. Approximately 50% of the SA harvest is exported as NIS to Asian countries with Hong Kong taking the lion share of 63.3%, followed by Vietnam (32.3%), China (2%) and others (0.3%).

"The remainder is processed to kernel. The USA and Canada are the largest markets for kernel exports while others include Europe, Japan, Southeast Asia and the Middle East, making this a product that is mainly produced for the export," adds Makube.

The annual financial incomes - The total value of macadamia exports in 2016 was R2.72 billion comprised of R1.12 billion and R1.60 billion of nut in shell and kernel respectively. The weighted average price for macadamia kernel was R22.17/ kg and R63.60/ kg when converted to an in-shell basis, while that for the NIS is R75.68/ kg.

Employment in this sector - Employment in the industry is estimated at 12,500 full time equivalent workers across the macadamia value chain. This includes seasonal workers for harvesting and processing from February through to August.

"The sector is growing organically at an incredible rate, it should further be noted that the area suitable for growing macadamias is limited in South Africa, hence the high demand and surge in the price of viable land, though macadamia is niche, its proven incredibly profitable for producers in this sector," concludes Makube.

Announcing the 6th Franchise Leadership Summit


18 September 2017: The highly anticipated annual FNB Franchise Leadership Summit (FNB FLS) will take place at Indaba Hotel, Fourways on Thursday, 16 November 2017. The event is well attended by premium franchisors and companies that are interested in and those providing extended services in franchising as an expansion mechanism.

The theme for this year's Summit is "exponential growth through entrepreneurship."

Morne Cronje, Head of Franchising at FNB Business says, "Franchising remains one of the most resilient and powerful ways to stimulate entrepreneurship and job creation in South Africa despite the constrained economic climate. This year, we are putting the spotlight on entrepreneurship in the context of franchising, with insights from a great line-up of experts."

The speaker line-up includes: Brian Altriche , Founder of RocoMama's (The RocoMama's story); Gerry Thomas - Managing Director of Krispy Kreme South Africa (Investing in foreign brands: The case of Krispy Kreme); Ina Paarman - Founder of Ina Paarman (A family journey from garage to global); Simon Alston - Executive Director at Infinitus Holdings (Creating a business that attracts investment).

Emma Sadleir - Social Media expert (Navigating the minefield of social media); Jeff Zidel from Resilient Properties (A life in property) and Mamello Matikinca , Head of FNB Economics (Economic overview).

Cronje says the line-up of industry experts will shed important insights on how their businesses continue to defy the odds.

According to the latest survey of the Franchise Association of South Africa (FASA), the franchise market contributes 13.3% to the South African Gross Domestic Product (GDP) and projected turnover is R587 billion. As a result, the sector employs over 300 000 people, with the retailing sector being the major employer.

The FASA survey further reveals that one in eight franchisors are represented outside of Africa, which means more franchise brands are looking at opportunities outside South Africa and the African content. The latter clearly epitomises the core of this year's theme. Different franchisors and franchisees will unpack and offer strategies for entrepreneurs who want to use franchising as a model for expansion.

"Franchising remains one of the key tenacious and growing sectors despite the floundering economy; more often than not this fact is often overlooked. These are among the many key topics that we will tackle at this year's summit," concludes Cronje.

Invest for the long-term, with the right asset mix


18 September 2017: Matching the right asset class combination to your investment term will go a long way to yielding you preferable returns.

The view on the importance of asset allocation and portfolio diversification is based on the risk-adjusted return benefits of having a portfolio invested across different asset classes. In the first instance, a more diversified portfolio reduces the risk of your investment portfolio. In addition, the diversification improves the portfolio's chances of consistent returns over time.

What is often not discussed enough, however, is the importance of a goal-based view in your choice of assetallocation. For example saving for retirement will require a different asset mix than saving for a more short-term goal like a deposit for your new house. As such it's critically important to consider your goals, before deciding the type of assets you want to be invested in.

Bheki Mkhize, CEO of FNB Wealth and Investment Solutions says, "Often investors are led to believe that the main recipe to successful investing is staying the course over the long-term. This is a fact that cannot be disputed; however it's just as important to match your investment time frame with a suitable asset combination. In essence, it's hard to achieve your investment goals if they are not aligned to the correct assets, no matter the amount of time the investment is held for."

Matching your investment time horizon with the right assets is something that is often tricky for novice investors. While there are those lucky few who are well versed in the performance of assets under different time horizons, for most of us it's rather daunting and overwhelming, knowing which assets to invest in for what period.

According to Mkhize, every investor's aim at minimum is to see their investment out-pace inflation over a period of time, however, there's no single asset mix that guarantees growth. Favourable returns on an investment are also dependent on broader macro-economic events. In addition to this, the more risk you are willing to take the better your potential returns.

FNB has introduced a range of 5 unit trusts collectively known as the Horizon Series, each with a mix of carefully selected assets with returns that are optimally linked to an investment time frame. The asset mix in these unit trusts have been selected by asset management experts across the First Rand Group and offer clients a blend of passive investments, single asset and multi manager funds.

"The primary objective behind the design of the funds is to match an investor's time horizon to the right asset classes over a certain period of time taking the load off the investor having to choose the optimal assets themselves. The result of this approach is having a blend of asset classes that perform well above the market benchmark over a specific investment time frame," says Mkhize.

The Horizon Series bouquet has been designed to make the accessibility to unit trusts less complex, making it easy to select the right fund while providing access to domestic and offshore investment markets.

"The investment philosophy of our unit trusts is anchored on achieving risk adjusted returns over a specified investment time frame. Since the launch 12 months ago, these unit trusts have attracted over R1bn of net inflows. This is a positive outcome for FNB clients as they remain focused on their long-term needs, despite unfavourable economic conditions," concludes Mkhize.

A record maize season but the weather is still a concern


14 September 2017 - South Africa has kept to all prior predictions and has registered a record harvest season with the total grain and oilseed crop of 18.91 million tons, which is up 101% year-on-year. The estimate for the maize crop in particular came in at an all-time high of 16.41 million tons, which is comprised of 59% yellow and 41% white maize.

The winter rains however have not retained the momentum; The Western Cape is still grappling with persistent drought conditions.

"Weather is critical for price direction going forward with the Western Cape still not out of the woods and the rainfall outlook still pointing to minimal rainfall for the wheat areas in South Africa. The crop has entered a critical stage of development and more moisture is needed for a good crop," says Paul Makube, Agricultural Economist at FNB.

The short term rainfall outlook shows limited chance of receiving rain in the grain areas in South Africa. The medium outlook shows an improvement in the rainfall expectations, particularly for Mpumalanga and KZN whose optimal planting dates for maize are fast approaching from the 1st October to the 15th and 30th of November respectively.

That said, all indications are that we are likely to have a largely normal rainfall season as the El-Nino prospects that had been noted at the beginning of the year have diminished.

"Apart from the Western Cape water crisis, we still expect a normal rainfall pattern for the rest of the country and therefore there should not be major worries about the late onset of summer rains this year. The season is off to a slow start, but we should see a far more normal season this year," concludes Makube.

Things to consider before taking a loan


14 September 2017: In South Africa, access to credit plays an important role in advancing financial inclusion. That is why it's important for anyone applying for a Personal Loan to have a basic understanding of how to best set themselves up to qualify.

Emma Mer, CEO of FNB Personal Loans, says "A Personal Loan is a great product to use to finance home renovations, vehicle related purchases, education and life events such as a wedding or the birth of a baby. With FNB, the product is easy to access and its fixed instalment repayment structure makes it simple to understand and to budget for. Before a loan is issued to an applicant the bank conducts a thorough background check on the borrower. The assessment process looks at, among other things, the applicant's credit record, income and expenses and level of affordability."

Therefore, when taking out a Personal Loan, it's important to be congisant of the following:

Be clear on what you need the loan for and how much you need
Before approaching a bank to apply for a Personal Loan you should have a clear idea of what you need it for. When you know what you are borrowing for, you are most likely to apply for an amount that matches the expense, and in that way you don't over extend yourself. It also means that you do not fall into the trap of taking up credit constantly for day to day expenses and cash flow management.

Never skip payments
When you skip a payment not only does this have an impact on your credit profile, it puts you under the strain of having to pay more than your monthly instalment to catch up. This could impact your ability to obtain additional credit products in future. You also run the risk of having to pay more in interest and fees to service the debt.

Cut unimportant expenses
Know what you are spending your money on, and if you see that you may possibly be spending too much on entertainment, for example, try to cut back and dedicate that money towards paying the loan.

Make sure that you can afford and pay your instalments
The repayment term of the loan significantly influences the monthly repayment amount. For example, if you take out a R5, 000 loan and choose a repayment term of 48 months (4 years) your instalment will be lower when compared to a repayment term of 24 months (2 years) for the same amount. Always ensure that you have some degree of certainty that you will be able to honour the loan amount owed until the end of the term and that your income will be stable.

The above will not only help you continue to gain access to credit but may also benefit in terms of the cost of credit.

"When determining the interest that will be charged, one of the things the lender will look at is your credit history. At FNB, your Personal Loan interest rate is personalised and if you exercise the necessary discipline in managing your credit record, you are likely to get a better interest rate," adds Mer

It's also important to note that a personal loan is unsecured and the bank does not require any collateral; therefore interest rates are structured differently compared to secured loans such as a Home Loan.

Tips for managing a new inheritance


13 September 2017: Becoming a wealthy individual overnight can be overwhelming and challenging for heirs who are not adequately prepared for the transition.

Eric Enslin, CEO of FNB Private Wealth and RMB Private Bank, says a majority of high-net worth individuals and families are advised well in advance to prepare heirs for their inheritance, but circumstances often do not allow everyone to follow through.

"In some cases, heirs are either too young to grasp the context of the conversation, or simply get overwhelmed when reality sets in," adds Enslin.

He shares tips on how to effectively manage a new inheritance:

  • Don't make rash decisions - when inheriting substantial wealth, you often go through an emotional and psychological phase. As a result, avoid putting yourself under pressure to make important decisions immediately. Rather take your time, come to terms with reality and gradually manage the transition.
  • Watch spending - spoil yourself within reason, but be careful not to fall into the trap of spending recklessly as this can easily become a bad habit when overlooked.

    Moreover, help out where you can, but don't be emotionally blackmailed to financially assist family and friends.
  • Don't just quit your job - many people assume that after getting a windfall there is no need to carry on working. However, the decision has to be weighed on its own merit.

    For example, if you will be actively managing or overseeing family businesses, it makes sense to quit and narrow down your focus.

    On the other hand, if your inheritance does not require you to be hands on, it may be ideal to carry on working to manage daily living expenses and pay for luxuries and hobbies, such as travelling overseas once or twice a year, instead of tapping into your inheritance all the time.
  • Consult reputable wealth advisors - a dedicated team of specialists lie at the heart of every wealth management strategy. These are professionals who will go the extra-mile to understand your objectives and needs, ensuring that your wealth works for you and your family.

    They offer a range of solutions that you will need throughout your wealth journey from preserving wealth, managing tax, investments as well as retirement and estate planning, amongst other services.

"As a successor you are now responsible for protecting and maintaining the family legacy while growing and preserving wealth for future generations. Therefore, up keeping family values and principles while merging them with your own aspirations is absolutely essential," concludes Enslin.

Does paying R100 extra on your bond matter?


11 September 2017: The substantial amount of debt owed on a home loan can often startle consumers making it seem pointless to pay anything extra, as it may take decades to settle the amount outstanding.

Dr Simphiwe Madikizela, Head of Special Projects at FNB Housing Finance, says what many consumers don't realise is that even paying as little as R50 extra on your bond, you can immediately start saving on interest.

By paying R50 extra on a R500 000 Home Loan on a 10.25% interest rate for 20 years, you will be able to pay off your home loan in 19 years and three months, while saving over R26 111.86 in interest that you would have paid to the bank.

He says that in order to understand the impact of extra payments, consumers should first be able to distinguish between payment towards their principal debt as well as interest paid on the principal debt.

For a home loan, the first payment you make would typically be paid towards interest. However, any extra payment you make enables you to lower the principal debt owed. As the principal debt decreases, so does the amount of interest you have to pay.

Recurring extra payment monthly Years to be paid off Savings on Interest
R100 18 years and 8 months R49 933.77
R200 17 years and 7 months R91 913.82
R300 16 years and 8 months R127 859.91
R400 16 years R159 093.56
R500 15 years and 3 months R186 545.30
R600 14 years and 6 months R210 921.07
R700 14 years R232 744.92
R800 13 years and 5 months R252 426.89
R900 13 years R270 280.29
R1 000 12 years and 5 months R286 571.73

"You should also consider toping up your extra payments with a lump sum, either from your bonus or tax refund etc. This will significantly reduce your interest over the loan period.
"Being aware of the impact of making extra payments will help you manage your bond repayments and ultimately ensure that you pay off your bond as quickly as possible," concludes Madikizela.

Stress test the business before you incubate


11 September 2017 - Business incubators have the ability to catapult a business in the right direction through enabling access to guidance, resources, networks and mentorship. However, incubation tends to be thought of as a magic wand, when in reality it only works once a business has gone through certain steps along its lifecycle.
"Often, incubators are seen as magicians where any business can be assisted, but in reality, not every business is ready or ideal for incubation," says Mags Ponnan, Head of the Business Incubator and Customer Value Propositions at FNB.

There are 3 main concerns that an entrepreneur must satisfy; these concerns must be crystalised before incubation:

  • Defining the identity, vision and strategy of the business - This is the earliest stage of the business, where the entrepreneur will need to define the goals of the business and the strategy of the business going forward. This will also determine the identity that the business will project to its potential customers.
  • Validation of the business model - The entrepreneur can stress test his business model through a pilot by gauging how well his customers receives his proposed product or service. This will assist the entrepreneur with finding the right product and market fit.
  • Implementation of the tested business model - This is usually the trickiest part of a startup where the entrepreneur will start selling his product/service to the market and will focus on the operational aspects of his business such as revenue generation through sales, recruiting the right team, etc.

Incubation will best work if the business is at a stage where it has created a product or service and has stress tested it, each business model and entrepreneur's needs and approach will be unique in this regard. A great business idea is not always enough to turn into a viable business, there are other factors that are best answered when a business affords the market the opportunity to respond to the business. "Stress testing an idea ensures that you save a lot of money and time in the long run, it also ensures that you maximize any assistance there is to get from an incubator," adds Ponnan.

Depending on the maturity and needs of the business, the average incubation period can be anything from 1 to 3 years which will also be in line to the incubator's curriculum. "We have a lot of businesses that want to get into incubators long before they have tested their products in the market, but the reality is that incubators are not a classroom. They exist to propel businesses from one stage to another along the business lifecycle. In as much as there are early stages incubators, the businesses that get the most out of incubation are those that have been stress tested their business model and shown their customers' appetite in the market space," concludes Ponnan.

SA's agricultural sector slowly bouncing back


05 September 2017 - Paul, Makube, Senior Agricultural Economist at FNB gives a snapshot of the agricultural sector and its recovery from the drought.

South Africa's Major agricultural commodities:

South Africa's (SA) agriculture is divided into three main commodity sectors. Livestock accounts for 47% of the country's gross producer value (GPV), followed by horticulture and field crops whose share stood at 29% and 23% respectively in 2016.

SA's top five agricultural commodities:

Poultry accounts for 16% of the agriculture GPV, followed by beef (12%), maize (11%), deciduous fruits (8%) and Citrus (6%). Together these account for 54% of the total agriculture GPV to the tune of R132.80 billion during the 2015/16 season.

The distribution of the production regions in SA:

Poultry - Chicken (broiler and layers) distribution in SA is led by the Western Cape at an estimated 21.9% share, followed by the North West (21.3%), Mpumalanga (15.8%), KwaZulu-Natal (13.8%), Gauteng (10.3%), the Free State (6.8%), the Eastern Cape (5.6%), and the Northern Cape at 0.2% of the total according to industry estimates.

Beef - The Eastern Cape accounts for 24% of the total beef herd of 13.69 million, with Kwazulu-Natal the second at 20%, the Free State (17%), the North West (12%) and Mpumalanga (10%). The shares of other provinces are 7% for Limpopo, the Western Cape and Northern Cape both with 4%, and Gauteng at 2%.

Field crops - Mpumalanga leads with maize production at 29.8% market share, followed by the Free State (28.5%) and the North West (14.7%). The Northern Cape produces 9.1% of the total and mainly under irrigation, followed by KZN (6.7%), Gauteng (5.7%), Limpopo (4%), the Eastern Cape (1%) and the Western Cape (0.6%).

Deciduous fruits - These are mainly produced in the Western Cape and Eastern Cape Provinces, all under warm, dry summers and cold winter conditions. Others such as the Northern Cape have a small market share.

Citrus - Citrus is mainly produced in Limpopo (42%), Eastern Cape (26%), Western Cape (16%), Mpumalanga (8%), KwaZulu-Natal (3%) and Northern Cape (2%), and others including Swaziland (3%).

Citrus and deciduous fruit are major export earners and have helped the country to record a positive agriculture trade balance in 2016.

Agriculture's contribution to employment numbers:

SA's agricultural labour force stood at about 835,000 heads during the second quarter of 2017. The Western Cape has the largest share and accounts for 22% of the total agriculture labour force, followed closely by Limpopo at 17%, KZN (15%), MP (11%), EC (11%), FS (10%), the NW (6%), the NC (4%) and GP (4%).

State of recovery from the drought

The expected grain harvest is now expected at a record high of 18.91 million tons according to the latest crop estimates report, which is 101% higher relative to last year.

The maize harvest is now estimated at 16.41 million tons, up by 111% year-on-year (yoy). Maize accounts for 87% of the total grains in SA and is not only used for human consumption but also livestock feeding where it constitutes over 70% of feed.

The horticulture industry was the least affected by the drought due to irrigation as many on-farm dams did have sufficient water. The relatively weaker rand exchange rate also helped with export earnings as the industry is largely export driven.

The total contribution to SA's GDP

Agriculture has over the past few years contributed less than 2.5% to GDP per year. However this could even be higher if one considers its forward and backward linkages to other sectors of the economy as in the case of manufacturing where about 70% of the agricultural output is utilised as raw material.

Agriculture GDP reached R65.84 billion at constant 2010 prices in 2016 from R71.42 billion in 2015.

"Recent forecasts showed that normal rainfall is expected for the 2017/18 crop season as the El Niño weather pattern has dissipated. The strength or weakness of the rand will influence agriculture's contribution to the economy in terms of import parity prices and export revenues", concludes Makube.

FNB repositions its investment offering


13 November 2017 - FNB has announced its intention to significantly enhance its investment offering to clients by investing heavily into its Wealth and Investment business that now combines the existing investment capabilities from FNB, RMB Private Bank and Ashburton.

FNB Wealth and Investment consolidates the advisory, trust and fiduciary, unit trusts, online share trading, stockbroking, portfolio management as well as the investor platform capabilities. The Asset Management capabilities will remain within Ashburton.

"We are investing vigorously in new products and digital platforms to enhance FNB's investment advice, packaging and distribution capabilities. Customers will benefit from using their existing relationship with the bank for more complex requirements making the investment process easier and rewarding. The new structure brings together a wealth of investment expertise from across the FirstRand Group," says FNB CEO Jacques Celliers.

FNB customers will be able to access all their banking and investment products in one place, making the management of their full net worth and investment goals much easier. The bank has a major head start to unlocking innovation in the delivery of its investment products with some 2 million clients active on the banking App and 2.2 million active on online banking.

"With over 7.8 million customers in the FNB base, there is a vast opportunity to further entrench main-bank relationships. Using the reservoirs of data we have and our analytical capabilities we are able to maximise the opportunity to meaningfully cross-sell to our customers as they progress through their various life stages. Our fintech proficiencies will ensure that our clients get the right financial advice digitally or via an advisor from a trusted money manager, with over 800 investment experts whilst still maintaining control through a single view of their financial affairs through the bank's integrated digital platforms." adds Mr Celliers.

While FNB has created strong transactional, credit as well as bourgeoning insurance and telco businesses, the move to establish a Wealth and Investment unit gives the bank an equally strong lever to reduce potential attrition.

Sizwe Nxedlana, formerly FNB Chief Economist, will lead the business unit following his appointment as CEO of FNB Wealth and Investment. Sizwe is an established executive and has been a member of the bank's Executive Committee since 2013. He has worked at FNB for 9 years, holding roles in FNB Business and FNB Wealth prior to taking over as FNB Chief Economist in 2012. Sizwe is an experienced financial market professional and has spent the bulk of 2017 transitioning into this role.

Mamello Matikinca has been appointed to take over the reigns as FNB Chief Economist. Prior to her appointment, Mamello was a senior macroeconomic analyst in the FNB Economics team. Before joining FNB, she worked as a macroeconomic analyst in the RMB global markets research team. She started her career at the Bureau for Economic Research.

"The realignment of our wealth and investment capabilities is a continuation of our commitment to build a compelling investment proposition that directly addresses the needs of our Retail, Wealth and Business clients. The consolidation also advances our journey of exponential helpfulness by enabling our customers to improve their financial futures. The consolidation will take our offering to greater heights, by building lasting relationships with our clients," concludes Mr Celliers.

ENDS
FNB Economics will continue to distribute the following indexes above economic commentary:

  • FNB/BER Consumer Confidence Index
  • FNB/BER Building Confidence Index
  • FNB/BER Civil Construction Index

Recent FNB accolades

  • FNB Securities was voted as Top Advice Broker in the annual Intellidex Top Stockbrokers awards for 2017

Update life cover when traveling abroad


06 November 2017 - If you are planning to go on holiday or visit friends and family outside the country over the festive season check the terms of your life policy to ensure you are adequately covered while away.

Lee Bromfield, CEO of FNB Life, says many consumers mistakenly assume that by merely taking out travel insurance all their insurance needs will be met.

However, you shouldn't overlook the fact that apart from medical expenses, personal liability, travel delays, lost or stolen luggage, amongst other insurable risks while traveling abroad, you also need life cover back at home to cater for the financial needs of your beneficiaries in the unfortunate event that you pass away.

"When traveling abroad, it is essential to ensure that your life insurer is aware of where you are going, how long you intend to stay and what activities you will be taking part in," advises Bromfield.

Your insurer will then advise if your plans have an impact on your policy, enabling you to make special arrangements if necessary, such as taking out additional travel insurance, where there is a gap in cover.

"If you are traveling to a relatively safe destination, and aren't going to be involved in dangerous activities, for a period of less than 90 days, many life insurers will continue to cover you without reservation. The terms may vary depending from insurer to insurer, hence it is recommended to notify your insurer," says Bromfield.

He further advises consumers to update their policies annually before going on holiday during the festive season.

When reviewing your policy ask yourself these questions:

  • Level of cover - if something tragic where to happen while you are on holiday - is the amount of money that is going to be paid by your life policy still enough to cater for the financial needs of all your beneficiaries or family members?
  • Changes in your life - are there any changes that occurred throughout the year that impacted your financial or insurance needs? For example, having a child, getting married and securing a higher paying job.
  • Beneficiary details - are you still happy with the beneficiaries you have nominated and are their contact details still accurate?

"Taking a few minutes of your time to inform your insurer about your traveling arrangements and making sure that your life policy is properly updated before going on holiday will give you peace of mind knowing that your loved ones will be financially protected should anything happen to you," concludes Bromfield.

Keep your finances in order


03 November 2017 - Consumers are advised to tighten their savings belt and ensure that their finances are in order. This is advice from Ester Ochse, FNB Advisory Product Specialist, after the announcement of the recent Mid-Term Budget Policy Statement.

The 2017 Mid-Term Budget projected that "the weaker growth outlook reflects a continued deterioration in business and consumer confidence". The Ministry also said this flows from perceptions of heightened risk as indicated in lower credit ratings, higher bond yields and sluggish investment."

Ochse unpacks the fundamentals of the Mid-Term Budget Policy which will affect consumers in the next few months.

Income Tax Looking ahead, consumers need to put themselves in a better financial position because in the quest to boost revenue, the Government could explore increasing income tax, which will impact disposal income.

Investments Continue investing in your 'investment' goals. Speak to your financial advisor before chopping and changing your investments. A knee-jerk reaction to short-term factors could negatively impact any progress you may have made and ultimately, your long-term financial future.

Growth: South Africa's growth forecast has been revised down and even though it is better than the previous year, it's unlikely to positively impact employment. Consumers need to also to tap into their entrepreneurial skills for other sources of income.

Debt management: Ensure that you manage your debt and live within your means. Direct extra funds towards paying off debt as quickly as possible and cut out unnecessary spending which will ultimately help you save for those unexpected emergencies.

"Take stock of what your personal financial situation is on an ongoing basis. Small but consistent changes make a big difference in obtaining long term financial goals. This should be an ongoing lifestyle rule that will only benefit you and your family in the long run," says Ochse.

Shop safely online with your credit card


25 October 2017 : : If you are amongst many customers who are taking advantage of the ease and convenience of shopping online with their credit cards, it is important to empower yourself with a few tips to keep your card details safe whenever you shop online.

Chris Labuschagne, CEO of Credit Card at FNB says, "Online shopping continues to be a growing trend in South Africa. More and more consumers regularly buy everything from basic household necessities to clothing, gifts and gadgets at the click of a button. Not only is it safe and convenient, you earn eBucks every time you shop online with your FNB credit card."

"However, to continuously get the best experience when shopping online, it is important to ensure that you are not caught off guard by online fraudsters."

He shares some tips for consumers to consider when shopping online with their credit cards.

  • Ensure that you are buying from reputable sites and Apps
  • Enter the provider's website by typing in the web address yourself instead of accessing it via a search engine as it might lead you to a spoofed site.
  • Never access the website from a link you receive in an e-mail or sms.
  • Make sure that you are not on a spoof site by clicking on the security icon on your browser tool bar, to see a Padlock and that the URL begins with https rather than http.
  • Never save your personal and banking details on any merchant website. if the option presents itself, always remember to click 'No'.
  • Always remember to log off immediately when you have finished shopping.
  • Always ensure you download the latest anti-virus software on your PC and mobile device where possible.
  • Never provide your credit card details unless you've initiated the transaction.
  • If you are a FNB customer, ensure your inContact details are up to date in order to get notified when money leaves your account.

    Also ensure Online Secure is activated on your credit card as it provides an extra layer of security that keeps you safe and in control when shopping online. How does it work? It will generate a One Time Pin that will be sent to you when completing your purchase, and will be required before finalising your purchase at a registered website.

    This is done so you can enjoy the convenience of shopping online and still remain in full control of your security. Remember, FNB will never ask you to share your One Time Pin over email, sms or phone, so keep it safe.

"Following these quick safety precautions and keeping up to date with the measures that your bank is using to prevent online fraud will give you peace of mind when shopping online with your credit card," concludes Labuschagne.

FNB wins as Master Innovator in the 2017 Accenture Innovation Awards


18 October 2017 - FNB was awarded the prestigious title of Master Innovator (organisations with a turnover above R35M) in the 2017 Accenture Innovation Awards, with FNB Connect winning in the Innovation Concept Category for Large Enterprises.

This comes a week after FNB was named as The Most Innovative African Bank at the 2017 African FinTech Awards for the second year in a row. "Being honoured with these awards is a true indication of our commitment to innovation which has solved for the daily challenges that our customers face. We have created a solid foundation of innovation which has benchmarked us according to industry standards; and this has added significant value to the innovation that we create within our business," says Jolandé Duvenage, FNB Innovators Head.

In partnership with the Da Vinci Institute and TransUnion, the Accenture Innovation Index is designed to provide a national benchmark for innovation, providing business and policy makers with an authoritative and objective snapshot of innovation within their organisations and in South Africa.

Staying ahead in an industry that is experiencing global disruption constantly is a necessity, no longer a nice to have. "We understand that this requires flexibility, disruptive thinking and an ongoing realisation that innovation needs to live at the core of the organisation, be part of its work methodology and culture," explains Duvenage.

FNB continues to introduce helpful customer solutions that leverage and disrupt the existing FNB banking model and ecosystem. With our investment in the telco space via FNB Connect in 2015, and just recently with the launch of the second generation of FNB Branded Smartphones - FNB ConeXis; FNB continuously looks at innovative ways that will make banking easier and accessible to all of our customers.

"Mobile evolution is driving banking and will continue to disrupt the banking landscape. The world is changing and our focus needs to extend to more meaningful innovations that deliver, exceed and solved our customers' expectations," concludes Duvenage.

About:

FNB Innovators:
The FNB Innovators Programme is a fully integrated innovation programme that provides structure and support and encourages employees to realise the importance of innovation in our business. Innovation is defined as an idea that has been implemented with measurable benefit to the business.

Top tips, and cost effective international travel for Senior Adventurers


15 October 2017: Money is tight for most South Africans so smart travel planning is essential. But if you're retired and can travel whenever you want, it's smart to aim for off peak season as you can avoid the crowds, the heat of summer and get a great travel deal to top it off.

Anthony Grant, CEO of FNB Foreign Exchange, says "Travelling around the world is always a rewarding experience and visiting family and, particularly, grandkids and great grandchildren in other countries is such a great opportunity that you want to enjoy every moment thereof. So, make sure you do your planning, reserving and confirming sooner rather than later. In today's tough economic times pensioners should particularly pay attention to how they spend their money to ensure they have enough to sustain themselves in the long term. Before travelling, it's always best to do some research that can possibly ease the cost on your travel expenses".

Here are some tips for seniors to consider for international travel:

Money matters
When booking your flights and accommodation, always ask if there are any special travel deals for seniors. By making a simple enquiry you could possibly save some money on both your travel and accommodation costs. When you get discounts for various expenses, the cumulative impact on your overall travel bill can be quite substantial.

Travel in a group
By travelling with a group of friends and family you can save costs in areas such as accommodation and entertainment. For example, if you are with a group of friends and family you can all contribute towards renting a holiday home. This is essentially about easing the impact on your wallet by sharing costs.

Travel off season
Travelling during off peak season can save you a lot of money, conduct some research about the different places you wish to visit and check when they are off peak. Generally, when you travel off peak you are likely to pay less compared to when travelling during a busy period.

Know your medical status
Always consult with your doctor and get clearance for you to travel, that's if you have any special medical condition. If you take medication, pack it in a place where it will be easy to access so that you can reach it as and when you need it. Try to take extra medication, if you experience a flight delay that is more than 24 hours you will at least have some medication to cater for delays.

Be prepared for emergencies
Before leaving for your holiday, make copies of your essential documents such as your passport and contact numbers of the hotel where you will be staying and leave these behind with a family member. Record details of your embassy in the country that you will be visiting and keep it in a safe place for use should the need arise. Keep in touch with family members back home as often as possible, and let them know if your location changes. Another important consideration to make is to get travel medical insurance.

"The key to any trip is being smart with your money, especially as a pensioner - and that starts before you even hit the road. Happy travels this holiday season. Be safe, be savvy and have a great adventure" concludes Grant.

Prioritise your savings


30 November 2017 - Given the economic environment that we live in, managing and maintaining realistic long and short-term savings goals is important. "Time is money, especially when it comes to savings and investments," says FNB Cash Investments CEO, Ancley Jacobs.

"Start your savings journey by looking at innovative solutions that will help you kick-start your savings plan. Not only will you earn interest over time, you will also earn compound interest, which is basically interest on the interest earned in the past, as well as on the original capital. The formula is simple: the longer and the more you save, the better your chances of becoming financially independent and immune to financial challenges and unexpected expenses," says Jacobs.

This may all sound great in theory, but what does one do in the current economic climate with rising cost and inflation?

"We should all be clear about our savings and investment goals. Everyone has a different set of needs and should tailor their savings based on their unique individual goals. For example, saving for emergencies where you'll need your money to be available immediately is different to longer term goals like a future overseas trip, where you can fix the savings term while earning a higher rate," explains Jacobs.

He says that a simple budgeting tool can help determine whether you are on track with savings or not.

"We often find that people dip into their savings for luxuries or those short-term treats that offer instant gratification. Whereas investing in long-term goals like a more comfortable retirement, education for kids and grandchildren or a deposit to buy a house can make a big difference to our standard of living versus those short-term spending pleasures that are short lived."

FNB offers various savings accounts to meet a range of customer needs. The bank's comprehensive mix of savings solutions includes: the new FNB Savings Account, FNB Money Maximiser, Fixed Deposits, as well as Notice accounts such as a 7-Day Notice and 32-Day Flexi Notice accounts.

"It's never too early or too late to start saving. Curbing the way we spend money on non-essential things versus intentional and disciplined savings should be an important driver for us and future generations," concludes Jacobs.

Money management styles: How do you handle money?


22 November 2017: Will you be left with cash once all the year-end festivities have died down or will you look back with a tinge of regret? Well, it all depends on your relationship with money because people relate differently to money.

"How you come out on the other side of the year depends largely on your spending habits. People manage their finances differently - there are those who spend and worry about the consequences later and those who are very cautious about how and where they spend their money," says Eunice Sibiya, Head of Consumer Education at FNB.

According to Sibiya, it's important for people to conduct some introspection and understand the type of relationship they have with money. "That's one of the ways to avoid having a financial hangover at the start of the new year," says Sibiya.

Here are some of the money management styles:

  • The avoider: These are people who avoid thinking about money and never keep track of where their money goes. They often spend more than they earn and find themselves in debt.
  • The big spender: This type cares about status, their wealth is permanently on display by spending on premium brands. They practice little caution about what they spend their money on. They refer to themselves as being adventurous; such individuals rely heavily on debt to finance their extravagant lifestyle and take a gamble on uncalculated 'investments' in search of a quick buck.
  • The shopper: These are firm believers in retail therapy; they consider shopping as a hobby and a form of relaxation. They always want to be seen to be setting trends, and often make impulse purchases on products that they don't need. These types are often aware of their addiction and are concerned about it, but they never take any remedial action. They hardly ever have anything left to save and invest for the future.
  • The Hoarder: These are often over cautious about where and how they spend their money. They stick to a strict household budget, love a good bargain and avoid making luxury purchases. They are not risk takers and are often scared of the thought of losing the wealth they have accumulated.
  • The Investor: These are people who are smart with their money. They are well aware of their financial status and live within their means. They make careful and balanced decisions with their investments. Most importantly, they make money work for them and aim to have a diversified portfolio of investments to cover future needs.

"How you manage your money has an impact as to whether you accomplish your financial goals or not. Consumers are encouraged to set financial goals and work towards meeting them within the set time frame in order to achieve financial freedom," concludes Sibiya.

Tips for travelling overseas during peak season


20 November 2017: Travelling overseas during the festive season can be stressful because it tends to be one of the busiest periods of the year when tourists travel to and from destinations all over the world.

Anthony Grant, CEO of FNB Foreign Exchange, says "Travelling during year-end peak time can be quite expensive but if you plan ahead you can save on costs. Money is an important factor to take into consideration before you travel, it's important to have a clear idea of how much the entire trip with will cost. The best way to do this is by creating a budget in relation to the currency of the country you will visiting, in this way you will have a good idea of the costs attached to the trip."

"Peak season is a very busy time and we all worry about unexpected expenses, but with some forward planning, holidaying overseas is not only possible but can be cost effective and easy to achieve."

Here are some tips for travelling overseas during peak period:

Opt for package deals

Whether you are travelling as family or a group of friends, consider the possibility of travel packages that are inclusive of the flights, accommodation and car rental. The benefit of this option is that you pay a single price, which is often cheaper than paying for each item individually.

Always leave early

Whether you are travelling to the airport or have activities planned, allocate an extra hour to your schedule to accommodate for delays. Airports and holiday destinations are typically crowded during peak season and to avoid spending time queuing, rather leave early. If for example, you plan to attend a music concert consider the option of buying tickets online instead of over the counter.

Money management

Always inform your bank about your travelling plans, this is to ensure that, where required, you obtain the necessary authorisation to transact overseas with your bank cards. For seamless transacting while overseas you can apply for a Multi-Currency Cash PassportTM. The Cash Passport can be loaded with the following major currencies: US Dollar, British Pound, Australian Dollar and Euro and allows you to transact and make cash withdrawals while travelling.

Travel Insurance

If you have an FNB credit card you automatically qualify for travel insurance, this will cover you in the event of an unfortunate incident such as a medical emergency, lost luggage or valuables. The risk of travelling without travel insurance is that should anything happen, you would need to cover the cost of the emergency from your own pocket in foreign currency.

"Travelling during peak season can be easy, you just need to know how to get around planning your trip to ensure you don't spend more than you budgeted for. Happy and safe travels" adds Grant.

Overcome digital banking fraud this festive season


Kovelin Naidoo, Chief Cyber Security Officer at FNB

15 November 2017: As the festive season draws near, FNB urges consumers to familiarise themselves with tips on how they can protect themselves against digital banking fraud:

  • Never save usernames, passwords or PINs on your cellphone or computer as it may allow others to access your banking without your permission.
  • Always do internet banking on a secure computer that you regularly use at home or work. Never do Online Banking in public areas such as Internet Cafe's or shared computers, as you can never know what software is loaded that may compromise your transactions.
  • Log on to your bank's website by typing in the web address yourself instead of accessing it via Google search as this may lead you to a spoofed site.
  • Never open suspicious or unfamiliar e-mails or attachments, and never click on links in emails or SMS's. Criminals make emails and SMS look legitimate and often bait you with scare tactics to confirm your account details or to login to prevent your account from being closed. They even incentive you to win something or get something for free in order to get access to your account.
  • Always keep your PIN and password secure. If you think your PIN or password has been compromised, change it immediately either on the FNB App, Online banking or at your nearest ATM or branch.
  • Remember to change your passwords and PIN's regularly.
  • Never use the same username and password for banking as you use on other apps and websites like social media and email.
  • Download the FNB App to keep track of your accounts and transactions and have additional security with you 24/7. From a security point of view you can approve legitimate transactions and stop fraudulent Online Banking transactions, report fraud for any suspicious transactions, and temporarily block or cancel your cards.
  • Download free Trend Antivirus and Antimalware for your computer and/or smartphone. Login to FNB Online Banking and click the link at the bottom of the screen to download and activate your free antivirus and antimalware.
  • Update your smartphone and computer with the latest software and app updates.
  • Monitor your cellphone reception. If you have lost signal for an unusually long time, you may be a victim of sim swop fraud. Immediately contact FNB's 24/7 Fraud Line on 087 575 9444 to report a suspected Sim Swop.
  • Criminals may sometimes call you and pretend to be from your bank, service provider or a reputable retailer. During this conversation they may ask you to verify personal and banking information or download software for them to "assist" you. It will be safer for you to hang up and call the company directly to verify if the call is legitimate.
  • FNB customers travelling are advised to download the FNB Banking App and use Smart InContact to approve transactions.

    Smart InContact, which allows customers to receive secure Online Banking transaction approvals on the FNB Banking App does not rely on SMS or email technology which could be intercepted by fraudsters. Smart inContact also notifies customers of all transactions, as low as one cent, with full control to report fraud with 1-touch of the Report Fraud button to the 24/7 FNB Fraud line. The app also works with Online Banking to verify devices that the customer uses to transact on his/her profile. Only verified devices with the app installed receive Smart inContact transaction approvals.

Taking the necessary measures to protect yourself against online banking fraud can give you peace of mind knowing that you can have a stress free festive season with your loved ones.

Keep your finances in order


03 November 2017 - Consumers are advised to tighten their savings belt and ensure that their finances are in order. This is advice from Ester Ochse, FNB Advisory Product Specialist, after the announcement of the recent Mid-Term Budget Policy Statement.

The 2017 Mid-Term Budget projected that "the weaker growth outlook reflects a continued deterioration in business and consumer confidence". The Ministry also said this flows from perceptions of heightened risk as indicated in lower credit ratings, higher bond yields and sluggish investment."

Ochse unpacks the fundamentals of the Mid-Term Budget Policy which will affect consumers in the next few months.

Income Tax: Looking ahead, consumers need to put themselves in a better financial position because in the quest to boost revenue, the Government could explore increasing income tax, which will impact disposal income.

Investments: Continue investing in your 'investment' goals. Speak to your financial advisor before chopping and changing your investments. A knee-jerk reaction to short-term factors could negatively impact any progress you may have made and ultimately, your long-term financial future.

Growth: South Africa's growth forecast has been revised down and even though it is better than the previous year, it's unlikely to positively impact employment. Consumers need to also to tap into their entrepreneurial skills for other sources of income.

Debt management: Ensure that you manage your debt and live within your means. Direct extra funds towards paying off debt as quickly as possible and cut out unnecessary spending which will ultimately help you save for those unexpected emergencies.

"Take stock of what your personal financial situation is on an ongoing basis. Small but consistent changes make a big difference in obtaining long term financial goals. This should be an ongoing lifestyle rule that will only benefit you and your family in the long run," says Ochse.

Big data a useful tool for responsible lending


12 November 2017: Banks are increasingly relying on their rich data to make decisions and streamline processes.

Emma Mer, CEO of FNB Personal Loans, says "As a bank, we have robust processes in place to ensure that we lend responsibly, while at the same time continually taking strides to ensure that the process of taking up a credit product is seamless and hassle free. To achieve this, we rely on the wealth of information we have about our FNB banked clients, which includes, amongst others, their demographic and financial information, their credit history, and the type of product that will suit their needs.

"When a client holds their primary banking relationship with FNB, we are able to assess each application thoroughly without placing onerous requirements for documentation or information on our customers."

Mer points to a functionality within FNB's digital channels that can highlight to the user that they are pre-approved for a Personal Loan, which can be taken up within minutes and is available 24/7, without any requirements for further documentation. Over the last 5 years FNB has fulfilled over 7 million pre-approved credit offers via its channels.
"The use of data for pre-approved offers is key in making the process of taking up a Personal Loan as simple and hassle free as possible for our customers" says Mer.

While a lot of effort goes behind collating the information on the back-end, interactions with the consumer are simplified because the lender can process a loan quickly and accurately because of the information that is readily available.

Teach kids to handle money earlier


07 November 2017 - Teaching children about the value of money from an early age will empower them to make sound financial decisions throughout their lives.

Ryan Prozesky, CEO of Value Banking Solutions at FNB says it is important for parents to teach kids about money and allow them to manage their own finances as soon as they understand the basics of math.

He shares tips on how parents can start teaching their kids about managing and saving their money:

Importance of saving: Encourage your children to plan ahead and save money to achieve their desired goals. Putting money away for them and allowing them to watch their money grow will teach them to be more patient and disciplined with their money.

Bank account: A kids' banking account is a great tool which can be used by children for monitoring, managing and saving their money. Having their own bank account will teach them the responsibility of managing their own finances. Enabling children to see their money via digital platforms is a fun and interactive way to educate children about managing their money, while also being safe and convenient for both parent and child.

For example, FNB offers a youth account called FNBy, which caters for children younger than 25 years. Accounts for children from 0 - 18 years have no monthly fee. Savings accounts with great interest rates and no fees are also available to children.

Budgeting and spending: Assist them in drawing up a budget each month and let them take control of their spending.

For example, allow them to allocate a budget for necessities like school stationary, savings and pocket money. Whenever possible, go shopping with them and guide them when necessary.

It is never too early to teach your children the principle of "paying themselves first", by first allocating any pocket money to their budgeted savings before spending, and not only saving if there is anything left over after their monthly spending.

Rewarding effort: Be mindful not to give your children too much pocket money without them putting in an effort to get it. Ask your children to help out with house chores and reward them based on their contribution. This will help them to appreciate the value of money. For example, for extra pocket money - ask them to help with washing dishes after dinner or your car over the weekend. This will teach them discipline and make them understand that money is earned.

"Don't wait until your kids start high school to teach them about the principles of money management. The journey to financial freedom should be cemented from a young age," concludes Prozesky.

Technology continues to change tourism business


24 October 2017 - Today, any consumer with a smart device can effectively book and pay for a holiday from anywhere on earth. Technology has eradicated borders and tedious admin in the tourism space, in doing so, businesses have had to continuously adjust to the ongoing advances that have a direct impact on both their profitability and visibility in the market place.

Charnel Kara, Tourism Specialist at FNB Business takes a look at some technological advancement that continues to advance/disturb the tourism industry.

Online Booking Portals - Every major airline, hotel group and transport Company now has a mobile application that allows users to book aspects of their trip via their mobile phone, from just about anywhere in the world, with the added convenience of 24/7 accessibility.

Free WIFI - It's becoming a non-negotiable for consumers. Most accommodation establishments have responded by providing a capped amount of data daily. One of the latest trends in this space has been the introduction of inflight WiFi. Many airlines have started introducing this, but it may come with additional cost.

Hospitality loyalty cards - The introduction of loyalty/reward programs has become an invaluable tool that assists a business to create specials, receive feedback on their facilities, products and give targeted specials to regular clients.

Social media - Platforms such as Facebook, Instagram and Twitter have become household names over the years. These platforms paired with a website or a blog enable a business to participate online. It allows travelers to get information and reviews of destinations before they spend their money - very little exists without social media influence today.

Interactive Maps - Today, the navigation technology embedded in smartphone apps, allows for easier access to any place in the world. With the introduction of Google maps, going wrong with directions has become nearly impossible for travellers - The impact on the industry is that there are now more spaces which are easier to find competing for the same spend..

Tech Free Zones - The flip side to technology growing at the pace that it has, is that too many people have become engrossed by it. It almost seems that human interaction is fast fading and the world is becoming a wired place. Some resorts and hotels have identified this gap in the market and are capitalizing on this as an opportunity; introducing tech free zones with the intention of providing travellers with pleasurable time away from the electronic world.

"With the advances in technology, new techniques and gadgets being introduced to the market, the delivery of high end products, services, comforts and convenience to travellers should remain top of mind for service providers to remain relevant in the market. This along with impeccable delivery of services and products to consumers is what keeps business in business," concludes Kara.

Is SA's most precious fruit export slowing down?


18 October 2017 - The devastating drought, characterised by the lowest rainfall since 1904 and a sharp fall in dam levels during the 2015/16 production season has caused a 21% drop in the production of South Africa's most precious fruit export - oranges. There is however a lot more that is impacting this fruit than just the recent drought.

Oranges are by far the most precious of the important fruit industry in South Africa. In the 2016/17 season in a year in which the drought was at its peak saw the total gross producer value for oranges reach R9.29 billion with earnings from exports accounting for 91% of the total production, at R8.47 billion.

"Diseases are the real challenge for the industry. South Africa's main export destination, the European Union where the Citrus Black Spot (CBS) is considered a quarantine pest, has caused consternation between the two trading partners. Another disease is Navel splitting; it has affected the Western Cape so much so that exports there have reportedly dropped by about 17% to 20%. This raised demand for navels from other regions of South Africa particularly at the time when the export market was particularly strong in the EU, the Far East, Russia, and the Middle East," says Paul Makube, Senior Agricultural Economist at FNB.

The European market is the leading destination for South African oranges, accounting for about 36% of total orange exports, followed by the Middle East with a share of 25% and the South-East Asian market at 12%. It therefore goes without saying that a decrease in this sector carries far reaching consequences. "Producers have started to switch to soft citrus, which in the longer term may eventually lower the status of oranges as the leading fruit in terms of production and being the export leader in terms of fruit in South Africa," says Makube.

At the moment, the weather has turned positive, during the rainfall season of 2016/17 and the outlook so far indicates that we are likely to have a normal to above normal rainfall during the 2017/18 crop season.

"This does not suggest that orange production is at its death bed, it is still a long way as it currently accounts for 63% of the total hectares under citrus. Outside the concerns, the current weather augurs well for the recovery in orange production with a rebound in volumes for the export market. When that is offset by the relatively weaker rand exchange rate, it is most likely to boost export revenue," concludes Paul.

What makes franchises recession proof?


12 October 2017: Over the past four years the franchising sector has displayed resilience, consistently growing its contribution to the country's Gross Domestic Product (GDP) from 9.7% in 2014 to its present contribution of 13.3% - an upward trend that is most likely to continue despite the lackluster economy.

The current growth of 13.3% is broken down by the Franchise Association of South Africa (FASA) as follows:

The largest franchise system is the Fast Foods and Restaurant category (25%). The Retail sector at 15% is the next biggest, followed by the Building, Office, and Home Services sector at 13%. Similar in size are Childcare, Education and Training and Automotive Products and Services (9% each), and Health, Beauty and Body Culture at 8%. The other categories are 5% and smaller.

Morne Cronje, Head of Franchising at FNB Business holds the view that the growth in this sector has a great deal to do with the provision of impeccable quality service, he says "business owners cannot control what happens in this economy. However, the growth that has been experienced may speak to how well businesses have exploited the bits they can control; a good indicator of this is customer experience inside the business. This trait, in my view, is the chief foundation for succeeding in franchising."

Extending their thoughts and insights on what makes franchises thrive are two speakers who will form part of the 6th FNB Franchise Leadership Summit 2017 -

Brian Altriche, Founder at RocoMamas says, "At the end of the day franchises are only as good as the operator and hence still fail if poorly managed, however due to the trust consumers put into a brand when spending money, and more so during an economic downturn, the franchise model works by allowing peace of mind to the consumer of having a similar experience as they had at another location of that franchise. It is the sharing of brand equity across a region and constant innovation that separates franchising from the average independent."

Gerry Thomas, Managing Director of Krispy Kreme South Africa also added that "Consistency and value drives consumer purchase decisions in a tough economic climate with well-known franchises fulfilling these considerations.''

"Franchising is still a business, even though there's a 90% success rate there is still a 10% chance of failure, as a result aspiring franchisees and franchisors need to do their homework before venturing into franchising," concludes Cronje.

For more information, visit the FNB Franchise Leadership Summit: www.franchisesummit.co.za

The binary art of selling


10 October 2017 - We often mention that we live in the digital age, where information flows at faster speeds, is more complex and is more accessible. As much as this information can be analysed by businesses to make better informed decisions, the real question is, is there room to alter the sales landscape?

South Africa has roughly 52% of the population that use the internet, with 70% mobile penetration. With more than half the population being enabled to use either the internet or a cell phone, businesses need to ask themselves whether digital retail strategies are the next evolution of selling. A simple, yet startling fact by GSMA is that in 2015, mobile technologies and services were already generating 6.7% of Africa's GDP, amounting to $150bn of economic value and supporting 3.8m jobs.

As more consumer groups become digitally savvy, businesses need to shift both their approach and "shops" from being traditional to being digital. In the latest e-commerce report, South Africans frequently return to their online store, purchasing media, books or travel products - they are primarily based in metropolitan areas, visit social media sites (or check emails) while shopping and are quite at ease with technology.

These type of insights and analytics in the digital space are growing significantly to assist businesses target consumers via social media - an example of the extent to which targeting has reached are banner ads on Google or Facebook - these are usually very targeted based on individual user patterns. Around 37% of businesses are currently using social media or viral marketing as their primary marketing driver, however this number needs to grow over the next few years.

With 72% of reported online shoppers using price comparison sites, businesses cannot afford to not price their digital store products competitively. Around 60% of customers prefer to pay via credit card services rather than on delivery, implying that customers want convenience when completing their shopping. By also shopping online, you allow customers to view reviews of your product, which can help boost your sales through indirect marketing.

What businesses must understand about using online platforms is that there is an initial decision in approach that each business must take - the business can either use digital platforms to promote their brand or initiate a virtual shop. These two approaches are inherently different and impact on the strategies used to go to market. Due to the South African market, brand promotion tends to be the more rewarding approach.

Brand promotion is rewarding simply because many South Africans are on social media sites throughout the day. By increasing brand awareness, you are able to drive customers to your store in a more cost effective manner compared to traditional advertising.

When promotions are then paired with offering the convenience of shopping online, enabling a high level of customisation or personalisation of your products and even delivery of your products, you enhance the customer's experience leading to loyalty and a much higher lifetime value.

What this then establishes as a first point of call is that businesses need to assess the feasibility of branding and/or selling in the digital space - many businesses tend to focus on the creation of a virtual store, without promoting the business itself.

The branding argument is much simpler to make - it is more cost effective and can reach a wider and more diversified audience. To sell online requires the business to evaluate whether their products are suitable for online selling - products that rely heavily on tactile sensation (touch and feel) are not ideal if the customer is viewing them on a screen. Once feasibility is established, you can then proceed to create an online catalogue along with payment mechanisms - elements of which are available from banks.

The advocacy here is not to imply that traditional stores are not suitable, but rather that businesses need to understand whether their products can be seen as more attractive to their customer, if their customers are digitally savvy by taking the product to the customer in a manner that is attractive to them.

Fuel price may increase... again


02 October 2017 - The volatile, but weaker exchange rate, coupled with a higher crude oil price, could mean a steep rise in fuel prices this October; this is on the back of the recent September increase. A fair estimate gauges an average increase of approximately 40 cents/litre for petrol and diesel. This unwelcome set of news will impact grain producers as they are on the eve of a new planting season.

According to the mind-month figures from the Central Energy Fund, the actual increase on the product price component of crude oil was between 35-42 cents / liter. The better than expected performance of the exchange rate for the first two weeks of September meant that an over recovery of 8 cents / litre was achieved - offsetting the actual price, thereby reducing how much the price could have gone up by.

The change of season in the Northern hemisphere, normally resulting in higher demand, the volatility of the Rand against major currencies, and the general investor confidence may see another increase before the year is out. Since fuel is a non-discretionary expense for the consumer, these types of movements is not good news for the man on the street. A secondary and longer term effect will be on inflation and which also impact the consumer in terms of food prices however, the recent record harvest and decline in food inflation should serve as a buffer for possible interest rate increases.

FNB taps into popular culture with new 'Akanamali' retail campaign


18 December 2017 - The adage that banks are steeped in heavy traditional marketing has been dispelled by FNB's summer retail campaign. Titled 'Akanamali', the campaign is a series of light-hearted radio and TV adverts that tap into this summer's hit song, Akanamali, by Sun-El Musician and Samthing Soweto.

"We were looking to depart from the norm in how we communicate a message around the usual financial burden at this time of the year and the fact that we are on hand to help customers in their time of need," says Firoze Bhorat, Head: FNB Retail Marketing.

"This time of the year is synonymous with some financial pressures, beyond the usual trend of spending on entertainment. To some, there may be a need to pay for emergencies, buy a second hand car or even cover a financial shortfall for life changing events such as a wedding. We want customers to know that we understand and can cater for such needs. To land an effective message that cuts through the clutter, we felt we had to fundamentally shift the banking conversation by using a universal medium that people naturally gravitate to - music," says Bhorat.

For several years, FNB has been synonymous with creating adverts that depict its brand promise of 'helpfulness' in the most creative and disruptive of ways. The use of the hit song is perfectly aligned to the bank's objective of using infotainment to break barriers and enable convenient access to finance through effective channels such as the FNB App.

The 'Akanamali' campaign does a good job in casting light on how the South African marketing landscape is evolving. Communication is starting to move away from a "one-size-fits-all" approach to a space where marketers need to be far more immersed in the culture of the day. This has a major impact in how messaging in campaigns is constructed, segmented, and eventually communicated.

Bhorat explains that making use of popular culture instruments enabled a far greater opportunity to reach the market.

"We are a brand that believes in innovation, the move to digital banking, usage of affordable data bundles and being rewarded via e-Bucks is all aligned in the quest to enable the customer to drive their banking, we sought to make that come across strongly in this campaign. The ability to apply and receive an answer in minutes is key to solving consumer angst; it is also a practical manifestation of our brand essence of helpfulness," concludes Bhorat.

The retail campaign runs in December 2017 and into the New Year.

Financial tips for surviving holiday season


18 December 2017 - The summer holidays are about to kick-off and people will be winding down their work commitments to spend time with family and friends in various parts of the country. While most people can hardly wait for the holidays to start in earnest, this time of the year also comes with a heavy financial burden for many consumers.

"In spite of the holidays being a period for people to recharge and reflect ahead of the New Year, it is always characterised by excessive spending. Generally, most people who work in South Africa's main economic hubs such as Joburg, Durban and Cape Town usually go back home, and the expectation is that they have lots of money to spend," says Eunice Sibiya, Head: Consumer Education at FNB.

The expectation is usually far from reality as the cost of living in these respective cities is relatively high, taking a toll on disposable income.

Sibiya says the onus to manage expectations lies with each individual, and says the following tips could be handy in helping you come out of the summer holidays financially unscathed:

  • Drop the act - Some people often act as if they have more money than they actually do. However, the best approach is to always spend within your budget and not be tempted to spend excessively purely to impress those around you.
  • Prioritise - Apart from unforeseen emergencies, holiday season expenses such as buying gifts and clothes for kids can be planned for well in advance. Try not to go overboard by buying expensive items.
  • Entertain creatively - Creativity can save you money, especially where family entertainment is concerned. Summer holidays usually bring good, sunny weather and South Africa's provinces have some of the best parks for an outing without blowing your budget. For larger gatherings, request other members to bring a meal or dish to share the catering costs.
  • Stick to the plan - Before taking a well-deserved rest, plan your downtime and try to stick to your plans as much as possible.
  • Avoid Janu-WORRY - Spend wisely knowing that summer holidays are long, and they can seem even longer when you have no money to use in January. Avoid starting the year with a major financial headache; keep money aside for back-to-school expenses and to travel to work.

"A different mind-set around this time of the year is necessary. In the midst of the festive season buzz, people often forget what is important, which is to spend time with family while recharging after a long year. All these important things can be done without spending money and when people feel the need to spend money, they can still do so without compromising their financial security," says Sibiya.

FNB Connect wins another prestigious international award


13 December 2017: FNB Connect has been awarded for Innovation in Product Design at the prestigious 20th Financial Innovation Awards held in London recently. The Awards recognised FNB Connect for introducing the FNB ConeXis smartphones which have enabled access to digital banking.

The accolades are bestowed to celebrate innovation, customer experience and most importantly, any service that places communities at the heart of the offering.

Shadrack Palmer, Chief Commercial Officer of FNB Connect, says, "This award is testament to our capacity to compete with global financial services and telco firms in spearheading innovation. The introduction of smartphones that are tailor-made for our customers has proven to be a significant disruptor in the market and a major breakthrough in enabling affordable and convenient access to a customer centric digital banking experience."

Alex Fraser, Chief Executive, The London Institute of Banking & Finance (LIBF), says "It has been very encouraging to see the extraordinary levels of ingenuity and creativity being applied by entrants from around the world. They reflect a clear focus on customer service and financial inclusion. While one of the only certainties in our sector is that things will change, and often rapidly, these awards demonstrate that the finance sector is well equipped to drive those changes that benefit us all."

In 2015, FNB became the first bank in Africa to launch its own SIM through FNB Connect, and a year after the first bank to launch its own branded smartphones. Since then, Connect has built a sound integrated proposition to become a telco provider of choice for FNB customers. By June 2017, it had sold over 75 000 FNB branded ConeXis smartphones, less than a year after they were unveiled.

Recently, FNB Connect introduced the latest range of FNB ConeXis smartphones and is currently running a highly competitive festive season campaign to give away 3.3 million Gigabytes of data to customers that use the FNB App or take up qualifying banking products. Connect has also introduced once off Mega Data bundles that will enable users to stream movies, play games and download at a cheaper rate. Customers can get 50GB for R879 and 100GB for R1399 over the duration of the promotion period.

"We are committed to becoming a telco provider of choice for FNB customers as we offer much more value to our customers than any other traditional provider. This accolade certainly validates our business case and demonstrates our growing stature in the market," adds Palmer.

In 2016, FNB Connect was awarded the Most Innovative MVNO at the 15th Annual World MVNO Congress held in Amsterdam.

FNB unveils affordable iPhone X deal


07 December 2017: FNB in partnership with iStore is giving customers an early festive season bargain by offering qualifying credit card holders the new iPhone X and other selected Apple devices at affordable rates.

FNB Gold, Premier, Private Clients, Private Wealth and RMB Private Bank credit card holders will be able to purchase the iPhone X 64GB (30 months) and iPhone X 256GB (29 months) at R749 and R899 per month respectively.

At 24 months, the customer can trade in the device and use the trade-in value to settle their outstanding balance, or continue paying for the remainder of the term.

Customers will have to purchase the device at any iStore in South Africa on their FNB Credit Card straight facility. Once a purchase has been made, FNB will transfer the purchase and limit onto a budget facility at a promotional 8% interest rate.

Heetal Govindjee, Head of Product at FNB Credit Card, says this exclusive deal, a first for the industry, is yet another way of adding value to customers by tapping into innovation and meaningful partnerships in order to continue offering them value for money, more choice and access to the latest technology at affordable rates over a reasonable repayment period.

"Not only will customers experience top of the range technology, without burning a hole in their pockets, this deal will go a long way to helping them to save, given the tough economic circumstances which continue to put pressure on disposable income," says Govindjee.

She adds that this latest offering is aligned to one of FNB's broader objectives to make smart devices affordable for South Africans who previously would not have been able to purchase them.

This exclusive offer follows the current FNB Connect data incentive, whereby customers are set to benefit from 3 million Gigabytes of data as a reward for using the bank's digital platforms between 1 November and 31 January 2018.

This is in addition to the eBucks rewards that qualifying FNB customers get for using the bank's digital ecosystem and other eligible products.

Although iPhone stock is currently constrained due to the overwhelming response from consumers, FNB Credit Card holders can join the waiting list at iStore.

Manage your credit card digitally this festive season


06 December 2017 - With the holiday period already upon us, getting to grips with managing your credit card digitally can go a long way to ensuring stress free festive season spending.

Chris Labuschagne, CEO of FNB Credit Card, says during the festive season when time is a luxury, consumers should take advantage of self-service platforms on their banks' digital and electronic channels in order to conveniently manage their credit cards.

"We are seeing an increase in the number of customers who choose to maintain their credit cards through the FNB App, Online Banking as well as our vast network of FNB ATM, ADT or Slimlines across the country," says Labuschagne.

He unpacks the benefits and advantages of managing your credit card digitally:

  • Stolen card while traveling - being able to cancel a lost or stolen credit card at the push of a button while traveling can ensure that your cash is always safe.
  • Forgotten pin - nothing can be inconveniencing as having to physically go into a branch to reset your pin in order to continue shopping, when you have the ability to view and change the pin instantly.
  • Misplaced card - you can temporarily block your card if you suspect that you have misplaced it, in order to ensure that no one uses it. When the card has been found or confirmed as lost, you can then use digital channels to take the necessary action.
  • Increasing the limit - although some banks still require consumers to first apply through a branch or call-centre to get their credit card limits increased, FNB empowers customers to also conveniently do this through the FNB App and online banking.
  • 24/7 access - unlike a bank branch or call centre where you are restricted to certain hours for consultation, digital channels allow you to manage your card anytime of the day.
  • Activating a new card - FNB online banking allows customers to order a new card and get it couriered to their place of convenience. Upon receiving the card, it can be activated instantly without having to visit a branch.

Digital platforms also come in handy for minor day to day card maintenance services like retrieving historical statements, transferring cash to another card or viewing the latest transactions, etc.

"Take advantage of digital banking channels when managing your credit card this festive season, not only are they cost effective and convenient, they are quick, allowing you to spend valuable time with your loved ones," concludes Labuschagne.

Get a Will this festive season


06 December 2017: 'Tis the season to be jolly', or so they say! We all want to think about the festive season - the gifts, the food and the family fun, but all of this, means nothing if your family isn't protected, should something happen to you.

There is no better time than now, to get sorted before the holiday season by taking stock of what is most important and ensuring that your family is protected. Start by getting a valid and up-to-date Will which allows you to put your wishes in writing for the distribution of your assets, appoint an executor that you can trust and nominate guardians for your minor children. Ensure that your biggest wish - that your family is given what they deserve - is secured.

"An alarming number of South Africans pass away every year without a valid Will in place, which is probably the most important document you will ever sign. Without it, your estate will be distributed in terms of the law of intestate succession. This may include beneficiaries whom you may not have wished to benefit, or may exclude persons whom you would have preferred to benefit. There is no better time than now to update or get a valid Will in place," says Vijay Morarjee, CEO of FNB Fiduciary.

"If you have young children, there is an even bigger need for a Will as it stipulates their legal guardians, as well enabling you to set up structures to protect your children's inheritance."

"Make sure that you have all your i's dotted and t's crossed when drafting a Will.. There are a couple of basic principles that if adhered to, will ensure that your Will adequately caters for your needs. continues Morarjee.

Consider the following:

Keep it simple

It is best to have an uncomplicated Will that makes provision for unforeseen events and still complies with the legal requirements of a properly drafted document. When preparing your Will, you need to consider what will happen if one of your beneficiaries dies before you. The best way to plan for this is to name a substitute beneficiary for each of your beneficiaries or to have a general substitution clause that will make provision for this. You should preferably not instruct your executor to sell your assets at death. If you do instruct the executor accordingly, he/she is compelled to sell the assets even if a heir would like to retain the assets.

Consider your marital status

The type of marriage you have entered into needs to be considered when your Will is prepared. Spouses married in community of property share equally in the risks and benefits of a joint estate. In general terms, the estate will be regarded as one, and each spouse owns an undivided half share of the joint estate. Beings married out of community of property means that your assets remain your own separate property and the same applies to your spouse. When married out of community of property with accrual, your assets remain your own, separate property for the duration of your marriage, but when the marriage terminates, both spouses will share in the wealth accumulated during the marriage. Customary marriages get the same recognition as civil marriages. In terms of the law, a customary marriage is recognised as a marriage "in community of property" unless an ante-nuptial contract was entered into before the marriage.

Minor beneficiaries

Additional planning is required to provide for the protection of the interests of minor beneficiaries. A minor beneficiary is a person under the age of 18 who has not been legally married or has not been declared a major. To help ensure maximum protection of your minor beneficiaries' interests, your Will should make provision for the creation of a testamentary trust if you are planning to include a minor beneficiary in your Will. A testamentary trust enables you to stipulate that the inheritance of your children or any other minor beneficiaries should be retained by your nominated trustees in trust for their benefit until a specified age. This will ensure that their inheritance does not fall into the hands of a guardian or any other person who does not have the necessary skill to manage and preserve their assets.

Nominate a guardian for your minor children. This is the person you would like to be responsible for your children if they are orphaned before reaching the age of 18. Keep in mind that the surviving parent will normally continue to have full responsibility for the children.

Nominate an executor

It is important to nominate a skilled and qualified executor in your Will. It is the executor's responsibility to ultimately administer the estate according to current legislation and among many other duties, has to ensure that the interests of the beneficiaries are protected. FNB Fiduciary are expert estate administrators and are the nominated executors in the Wills that are drafted by FNB experts.

Get it signed

A Will is only valid if executed (signed) correctly. A Will should be signed in full on every page in the presence of two witnesses over the age of 14. The witnesses should not be a people who are included as beneficiaries in the Wills or their spouses. The witnesses should also sign in full on the last page of the Will. Your Will should also be dated to ensure that the last valid Will can easily be identified.

Review regularly

You should review your Will whenever there has been a change in your status or circumstances, or those of your beneficiaries' lives such as marriage, divorce, birth of a child or changes in your financial situation. Another good time to review your Will would be after any changes in legislation which could affect your estate plan.

"We encourage people to get sorted before the holiday season, so that the interests of your loved ones are protected. Don't delay what's most important. Protect your family, start by getting an FNB Will at no cost," concludes Morarjee.

Take charge, bank digitally for less charges


01 November 2017: Cash is king, but it can be both expensive and risky whereas cashless modes of payment are easily accessible and cost effective because they are conducted via card or through digital banking channels, which is safe and can be done from anywhere at any time.

"Card payments remain the most common type of electronic payment channels used by most banking clients. Not only is it cheaper to transact via electronic channels, it's also safe because it eliminates the burden of having to carry cash," says Khathu Ramoliko, Sub -Segment Head for FNB Gold.

According to Euro International, card transactions in South Africa increased from 29.4% in 2016 to 31.1% in 2017. Where cash decreased from 60% to 58.4%.

"As of September 2017 40% of transactions conducted by Gold customers were on card, this is higher than the South African average."

According to Ramoliko South Africa's modernised banking system gives customers an array of electronic payment channels to choose from, such as banking Apps, online banking, cellphone banking and mobile money transfer tools.

About 80% of FNB Gold customers make use of at least one of our digital channels every month, the majority opting for cellphone banking however App usage is the fastest growing digital channel. The FNB App boasts several cashless functionalities such as eWallet and cardless withdrawals and we continue to make it simple and easy for customers to use as this will become a Banker in the customer's pocket and allows them take care of all their day-to-day banking needs. With more functionality being added to the Banking App customers can bank when they want and spend less time standing in queues in a branch.

Financial inclusion remains key, while the country advances towards a cashless society the needs of rural communities need to be taken into consideration. Mobile money transfer tools such as eWallet are a cost-effective banking intervention for rural communities and low income earners.

FNB has close to 5 million active eWallet customers of which 77% do not have traditional bank accounts with us. In August 2017, over 3 million eWallet money transfers were sent, and this number grows every month. eWallet can also be used as a transacting channel, it allows for prepaid purchases such airtime, data and electricity and can be used for online purchases via Cell Pay Point.

"A move away from cash need not be at the exclusion of those who are disadvantaged and poor. Communities that were or may still be financially excluded must be taken along the journey and this means developing innovative non-cash based payment solutions," cautions Ramoliko.

According to telecommunications stats site, www.statista.com, South Africa has over 18 million people who use smartphones, and this figure is expected to peak to over 25 million by 2025.

"The penetration level of both smartphones and internet access bodes well for banking customers, especially people located in rural areas. FNB has since zero rated its Banking App, further opening up its array of cashless payment services to a wider user base," adds Khathu.

"We have also made it easier for our customers to get smart phones through our FNB Smart Phone offering which customers can have for free on level 5 of our rewards program, as well as our FNB Connect network. We have sold close to 500 000 devices, including our own ConeXis X1 and A1 smartphones. In September, we launched the next generation ConeXis X2 and A2 smartphones.

Given the tough economic conditions customers may have to make various considerations that may ultimately influence what they pay for transacting.

"As an example, an FNB Gold customer gets unlimited free swipes, however, combined usage of electronic payment and transfer channels will most likely result in lower transactional costs," says Ramoliko.

Effective savings strategies to follow


25 July 2018 - The simplest money management strategy to follow, is to spend less and save more. This strategy will go a long way in helping you achieve your financial goals and dreams and give you direction in terms of how your money should be managed. Building a savings strategy should not be tedious, but rather an easy and empowering process.

"Savings should be a priority for everyone who wishes to be financially independent and should be actively managed on an ongoing basis. Consumer needs and wants differ, some may save for a holiday, while others may opt to put their money in a savings account until they have defined their savings goals. Whatever the choice, we encourage consumers to start saving regularly," says Himal Parbhoo, CEO FNB Retail Cash Investments.

He adds that, "Your savings strategy should ideally encompass ongoing planning, effective budget management, identification of short, medium and longer-term goals and objectives and regular monitoring. Sticking to this strategy will help you steer clear of unnecessary debt and help you live a happier and healthier financial life."

Parbhoo unpacks 5 principles to ensure effective Money Management and an empowering Savings Strategy:

1. Time is of the essence: Wealth creation happens over time. The longer and the more you save, the greater the growth and returns earned. Compound interests, which describes earning interest on interest, significantly boosts the rate of growth of money saved over time. So, saving consistently over a long period of time will generally yield better results than saving more money over a short amount of time.

2. Start saving sooner rather than later: The sooner you start saving the better it will be for you in the long-run, as you establish a healthy savings habit early on, rather than to make big savings sacrifices later in life

3. Pay yourself first: If you are serious about accumulating wealth and healthy savings - you will adopt the principle of paying yourself first. Put away a healthy percentage, for example 10% or 20% of your salary in a savings or investment account, on payday and then spend the rest according to your budget, rather than to save what is left at the end of the month. Your savings will grow and help you reach your financial goals sooner.

4. Consider a range of savings and investment options: Look at savings and investments that suit your lifestyle. Consumers also have the option of investing in Tax-Free Savings Accounts, which enable you to enjoy the full benefits of your savings and investments. With Tax-Free Savings Accounts customers can top up on their existing Tax-Free Savings Account portfolio for maximum gains, within the annual and lifetime contribution limit.

5. Reinvest your extra cash: Money that was allocated to pay-up loans, can be reinvested in savings, once the loans are settled. This is a great way to ensure that you do not pick up or spend your available funds on unnecessary things.

Ongoing information gathering to build a better understanding of the financial landscape is important in managing your savings. "The more you know, the better financial decisions you will make. Strive to access financial information every day to help you grow your knowledge and develop an innate propensity for saving and growing your money," concludes Parbhoo.

FNB offers a range of savings and cash investments where you will not only benefit from attractive interest rates, but your capital and quoted returns are fully guaranteed, meaning there is no risk of losing your hard-earned money.

Save for your child's education


16 July 2018 - Education is costly and requires much thought and consideration. Without a proper savings strategy; you could find yourself running around for that extra cash to pay for your child's education.

"With the increasing education costs; parents should take it upon themselves to plan and save in advance. Not forgetting that unforeseen expenses will pop-up from time to time. This puts strain on parent's pockets; especially if these unforeseen expenses are not planned for," says Ester Ochse, FNB Wealth and Investments, Product Specialist.

She highlights the following points that could help in saving for your children's needs:

1. Start saving now!
It's never too late to start saving - for the short or long term. Be it for crèche, nursery, primary or tertiary education, you need to ensure that you save enough so that our children receive the best education possible. Even a minimum amount of R 300.00 per month in a Savings Account can help in contributing to their future.

2. Draw up a savings plan
A savings plan is your blueprint to your savings journey. This plan should highlight your aims, objectives and goals for the year. Review this plan on an ongoing basis and ensure that you stick to your objectives.

3. Goals
Goal-based planning that encompasses both short and long-term goals are important. These goals can help you understand what your priorities should be and where your focus should lie. These goals will help you manage your finances and at the same time ensure that you have enough for all your expenses; including emergencies.

4. Budget
Like a savings plan, we need a budget. Budgeting may be a tedious activity but can help steer you away from unnecessary spending and will help you keep track of your spending. In your budget ensure that you list your child's education fees, uniform costs, stationery, extra-curricular, medical expenses, textbooks to mention a few. Do a comparison on a year-on-year basis and see if your expenses have increased or decreased.

5. Open a savings account
Look at opening a Savings Accounts or Unit Trust for your child. Look at the interest and return on investment when deciding on which account to open. FNB offers a wide range of Savings Accounts which gives you the option of accessing now or later.

6. General school expenses
Day-to-day school expenses will not end and will add to your budget quite drastically. Many schools advocate that children need to partake in extracurricular activities like netball, chess, modern dance - but these activities come at a cost. Ensure that you understand what your child enjoys doing before enrolling them in a class. This will leave you with less wastage and with a happy child.

"Education is a must, and while school expenses are high, we should ensure that we save appropriately so that our children get the best possible education ever," concludes Ochse.

Use your home loan account to save money


12 July 2018: There are different ways to save money, but the most unconventional or perhaps least considered is saving through your home loan account.

Khathu Ramoliko, Head of the Gold Sub-Segment at FNB, says "A home loan is a long-term financial commitment which takes years to repay, however, it can also be used as a savings tool over the life of the loan. In other words, as a homebuyer, the loan provider can structure your home loan in way that allows you to pay extra towards the loan. The benefit is that you can save on interest and the additional money can be accessed whenever required using the Flexi Option."

Using the FNB Flexi Option facility on your bond is a great way to put extra cash directly into your bond. It also means that if you need access to the cash you can withdraw the additional funds you have in the loan account. By adding your savings into your bond, you reduce the interest being charged, as every bit extra goes towards paying off a part of the loan, therefore the lower the loan amount the lower the interest.

For example, if you have a bond of R700,000 over 20 years (240 months) with an interest rate of 10%. Your repayment every month would be R 6,755. If you pay an additional R500 per month, the loan will be paid off 43 months earlier, potentially saving.

According to Ramoliko, the Gold customer falls between the R7, 000 and R25, 000 monthly income brackets, and some within this group include first time buyers.

"About 56% of customers in the Gold base are first time buyers, and this is the group we focus our educational efforts on so that they begin making additional payments into their home loan much earlier. Customers have the option to set their debit order above the minimum repayment amount as a way of committing to extra payments on a regular basis," adds Ramoliko.

"In principle, there's nothing wrong with paying off your home loan over the 20-year time frame. However, if you are able to pay a little extra you can shorten the repayment time frame and reduce interest repayments and ultimately save," concludes Ramoliko.

Consumers can now also use their FNB app to switch their home loan, this means being able to switch from the comfort of your home or get approval for a new one. Using the Banking App is quite efficient, once the switch application has been submitted it's handled by a dedicated consultant from start to end. The applicant can also track the progress of the application on nav» Home to check the status of process.

"We have seen exponential growth in the channel with 1 million unique visitors to nav» Home. Applications on this channel have also grown 392% year on year, indicating that consumers are ready to embrace this enhancement." concludes Ramoliko.

How to get a good home loan interest rate?


July 2018: First-time home buyers often get consumed by positive emotions after qualifying for a home loan, while overlooking how interest rates may impact their monthly home loan repayments.

Stanley Mabulu, Channel Management Head in the Home Loans division at FNB, says the interest rate that financial institutions charge on a home loan has long-term ramifications on consumers' ability to service debt. This is partially due to the nature of interest rates that fluctuate as economic conditions change.

"Moreover, the higher the interest rate, the more you are likely to repay at the end of the month," adds Mabulu.

For example, if you take out a home loan worth R500 000 for 20 years at an interest rate of 13% (Prime plus 3%) you are likely to pay a monthly home loan repayment of R 5 900. However, for the same home loan on an interest rate of 11%, you are likely to pay R 5 200, which would save you R 700 monthly.

Mabulu, shares three essential tips on how consumers can get a better interest rate when applying for a home loan.

  • Credit score - banks consider a number of factors and financial discipline when assessing your credit score.

    This information is used to determine your individual risk profile and ability to repay the loan.

    "A good credit score often results in the bank offering you a good interest rate, while a poor credit score can lead to a higher interest rate or even your home loan being declined," says Mabulu.
  • Negotiate - many consumers often accept the initial interest rate that they are quoted without attempting to negotiate.

    Financial institutions are often willing to negotiate to reach a mutual agreement which suits both the bank and customer.

    "If you are fortunate enough to get a favourable interest rate, rather pay the difference (money saved) as an additional payment into your home loan account every month to save on the total interest payable over the home loan term," advises Mabulu.
  • Higher deposit - paying a higher deposit reduces the risk that the bank is exposed to when granting you the home loan. As a result, this positively impacts your credit profile enabling you to secure a more attractive interest rate.

    "Although the impact of a higher interest rate may not immediately be visible, the effects often catch with consumers in the long-term," concludes Mabulu.

Avoid skipping debit order payments in December


05 December 2017 &minus; Consumers are encouraged to budget and spend wisely over the festive season to avoid the consequences of defaulting on mandatory debit order payments.

According to Ryan Prozesky, CEO of FNB Consumer Core Banking, the number of customers who default on debit orders often spikes between December and January, due to increased spending during the festive period.

"Although consumers do deserve to celebrate at the end of the year and spend quality time with friends and family, they should be careful not to spend haphazardly at the expense of important financial obligations," says Prozesky.

He points out four risks of skipping debit order payments.

Unnecessary debt
The last thing you want at the beginning of the year is to be indebted due to poor planning. Consumers often find themselves having to take out loans or borrow from friends and family to meet financial obligations in January

Double debit orders
Service providers will often attempt to debit double the amount due if you skip a payment due to insufficient funds in your account. For example, if a debit order for R2000 fails during December, you could pay R4000 in January

Policies lapsing
If your insurance policy debit order fails for two consecutive months, between December and January, you face the risk of your policy lapsing. This can place you at risk should an unfortunate event occur while you are not insured.

Bad credit record
Consecutive debt order bounces as well as lapsed policies as a result of non-payment could impact your credit record. This can work against you when applying for credit from financial services providers.

Prozesky advises consumers to take advantage of early December debit order payment offers from various service providers which allow payments to be collected as early as the 15th of December to help consumers avoid defaulting.

Furthermore, take into account that there are a number of unforeseen expenses and emergencies that can set you back financially in January, such as transport costs, and back to school expenses, amongst other factors.

"Making debit order payments a priority when planning your budget for the festive season can go a long way to ensuring that you start the New Year stress free," concludes Prozesky.

Step-by-step guide to saving for your child's education


10 November 2017 &minus; 2018 is around the corner and while we planning for the summer holidays, we should devote some time to ensuring that we manage our expenses in the New Year.

Education has become a costly affair and requires much thought and consideration. "Besides the normal school fees, parents need to fork out extra on uniforms, stationery, extracurricular activities, excursions; to mention a few. This sometimes puts strain on parents' pockets; especially if these unforeseen expenses are not planned for," says Ester Ochse, FNB Product Specialist.

Ochse believes that saving for these long-term goals such as education should be a key objective for everyone. She highlights her 10-point plan to ensuring that you have enough for your children's needs:

1. Research
Choosing a good school for your child is never easy and requires research. Some of the key factors that you need to consider are:

  • Location: area
  • Accessibility: can you get to the school in time if there is a problem?
  • Cost: Is it affordable for you and your family?

2. Save now!
It's never too late to start saving for education. Be it for crèche, nursery, primary or tertiary education, we need to ensure that we save enough so that our children receive the best education possible. Even a minimum amount of R 300.00 per month can help; this action will help your children reap the benefits in the future.

3. Draw up a savings plan
If saving is difficult for you, then look at Savings Accounts or Unit Trusts that offer you great interest and Return on Investment. FNB offers a wide range of Savings Accounts which gives you the option of accessing now or later.

4. Choice: Private vs Public schools
This is dependent on your budget and preference. Some parents prefer that their children attend boarding schools while others prefer the private schooling route. Whichever options you choose ensure that the school is a right fit for your child and they are comfortable with the space, environment, teacher and other children.

5. Work on your budget
Ensure that your budget is up to date and that you are not overspending in places where you don't need to. Rather predetermine what schooling expenses you think may come up and add this to your budget. There are many budget templates that you can access that will help guide you through the process

6. Fees
This includes tuition, school, and medical fees to mention a few. We cannot avoid these costs and they will creep up on us at any point in the schooling journey.

7. General school expenses
Day-to-day school expenses will not end and will add to your budget quite drastically. Many schools advocate that children need to partake in extracurricular activities like netball, chess, modern dance &minus; but most of these activities have related costs. However, ensure that you understand what your child enjoys doing before enrolling them in a class. This will leave you with a HAPPY and HEALTHY child without putting a strain on your budget.

8. Having a Nanny
With the increase in cost of living, we find that most parents in many households need to work to sustain their current lifestyles. With this mind and given that you cannot be in two places at once, you may need help at home to look after your children during the day. This also comes at a cost, but at least you know that your child is well looked after.

9. Text Books
Recycle and get your children's text books via a second hand shop or a family friend that has just completed the course or grade. This will help reduce your costs immensely.

10. Uniforms
Uniforms have become expensive. Today, schools require that students wear a summer and winter uniform which becomes expensive. Instead of buying new uniform, go to the second hand school shop and purchase the uniform there. In addition, buy a bigger size so that they can use it the next year.

"Education is a must, and while school expenses are high, we should ensure that we save appropriately so that our children get the best possible education ever." concludes Ochse.

Local and global Gold demand at record levels


19 October 2017 &minus; Gold has generally held its status as an investment haven in times of global uncertainty, disparate economic growth across countries and particularly when geopolitics take the centre stage as they have done in recent years.

"This is particularly because of its properties as both a hedge against inflation, and its pricing in dollars &minus; the reserve currency globally," says Aneesa Razack, CEO Share Investing.

Earlier this year, reports from Rand Refinery (Pty) Ltd highlighted that Krugerrand production reached 23 year highs. Globally, China, India, Germany and the US accounted for 58% of global demand. The demand for Gold has been increasing, with developing economies accounting for two thirds of the growth in demand, led by China and India. In addition to this, the gold mine supply is expected to peak in 2017, which is supportive for a bullish view on gold prices - this is supported by a few big global players like Goldman Sachs who recently revised their gold price forecasts upwards.

Krugerrands keeping the luster
Razack says, "Krugerrands are the cheapest way to invest in the gold bullion as investors have the option to purchase fractional ownership from as little as 1/10th of an ounce at the prevailing price. Investors may however also get gold exposure at accessible prices through Gold ETFs, which of course are not a direct investment into physical bullion, but rather track the price of gold."

Krugerrands have proven to be a valuable investment choice as the value of 1 ounce of a Krugerrand has increased by 759% since 2000, outperforming all other asset classes, while the price of Gold has increased by roughly 355% over the same period. Krugerrands are also VAT zero rated, and attract no trading fees, ultimately lowering transaction costs, when compared to ETFs which attract brokerage and other transaction fees that effectively impact the base from which the investment compounds over time.

"For some investors Gold is a sentimental purchase, while for those who are generally skeptical of financial markets, Krugerrands provide a sense of comfort about the safety of their investment and are also easy to use as a gifting product to family or employees for long-term service," says Razack.

Customers can purchase Krugerrands quite easily through FNB's digital channels. "We offer clients a guaranteed buyback on the coins purchased through us, making it a relatively safe and liquid investment. Clients can also see the value of their Krugerrand holdings as well as their other investments all in one place," concludes Razack.

Avoid the lure of loan sharks this festive season


04 December 2017 &minus; Many people use credit to help them with festive season expenses, but a poor decision one can make is to borrow from a Loan Shark.

Emma Mer, CEO of FNB Personal Loans, says "it's easy to get lost in the festive season excitement and to end up making financial decisions that will be costly over the long term. One of these is borrowing from a Loan Shark to finance festive season expenses. The best approach is to save, or to borrow money from a legitimate Financial Services Provider. The reason for this is simple- Loan Sharks operate outside of the country's laws that govern the extension of credit."

One of the major issues to be aware of is that borrowing from a Loan Shark can come with incredibly high interest rates which are often beyond what the law allows. That is why it's important to rather approach a trusted provider that will help you achieve your festive season goals without bending the rules.

When borrowing from credible financial institution such as a bank, a thorough financial assessment is done, the purpose of which is to determine your individual interest rate and the amount that you qualify for. The main goal of this process is to lend consumers what they can afford.

Here are some benefits of borrowing from an authorised lender:

  • The process is transparent and there is a formal contract in place which stipulates the terms of the loan;

  • You are provided with a quote should you qualify for a loan;
  • You have an option to choose the payment period that is suitable to your financial position and needs;
  • You are provided with loan account statements on an ongoing basis, stipulating fees and related debt servicing costs;
  • You do not have to sacrifice your ID or bank card as security and this safeguards you against identity fraud.

"These are very important issues to consider as a loan should help to empower and enable you. For FNB customers, the loan application process can be done through any of FNB's channels including on www.fnb.co.za or our Banking App from anywhere at any time. We are able to assist our customers whose salaries are deposited into their FNB Account quickly and without any additional documentation," says Mer.

Mer encourages people to please be cautious around the dangers of taking up credit from suppliers that are not credible. "It's important to plan you spend wisely and then consider a Personal Loan to top up or to help you do the things that will benefit you in the long run, and that you would not otherwise be able to do. These could be supplementing education savings, doing home renovations or being able to take up a great travel deal even if you haven't had time to save for it," adds Mer.

Do renovations increase the house price?


14 November 2017 − Whether you are renovating your house to create more space, rejuvenate or to put it in the market, getting to grips with how renovations impact the sale price will help you make an informed decision.

Dr Simphiwe Madikizela, Head of Retail Sales and Special Projects at FNB Housing Finance, says many consumers mistakenly assume that when you invest in renovations, the money spent will be regained when selling the house.

"However, not all renovations you make will necessarily increase the value of the house. For example, adding an expensive swimming pool can often be a disadvantage due to the required maintenance. As a result, some potential buyers may not be willing to pay more for it and would have preferred to have the extra space instead," says Dr Madikizela.

He shares a list of renovations that can potentially increase the value of a house in lower to middle income neighbourhood:

Kitchen and bathroom alterations
These renovations add significant value as bathrooms and kitchens are regularly used by consumers.

Garage
Having a garage increases security in your house and can also reduce your car insurance premiums.

Energy saving features
As the cost of electricity continues to increase; many households are looking for efficient means of saving. Therefore, energy saving features like a solar geyser will add significant value.

Automatic gate and garage door
These additional features increase security and convenience in a household.

Cottage
Cottages and outside rooms are useful if you are staying with your domestic worker. The rooms can also be rented out to generate extra income for the family.

Storeroom
Having storage space can give you an advantage when selling the house. Every household needs space to store important household content that are not used regularly.

"Also be careful not to overinvest in renovations that may result in your house being overpriced, compared to other properties in your neighbourhood. You may find it difficult to attract buyers, and eventually have to sell at a loss," cautions Dr Madikizela.

"Lastly, don't try and cut costs by hiring unqualified renovators. Poor workmanship will cost you more in the long-run and may require the job to be done all over again," he concludes.

If you are unsure about the current value of your house, you can consult the bank or a professional valuator to assess it for you. You can also get a free value estimate via nav» Home through the FNB Banking App and online.

Reducing credit card debt in the New Year


24 January 2018: As the New Year begins many consumers will be looking to reduce their credit card debt as part of a resolution to get their finances on track.

"Although it may seem like a daunting task given the amount of debt you may owe, reducing or paying off your credit card debt can be achieved with a proper strategy in place," says Jonathan de Beer, head of collections at FNB Credit Card.

He shares simple tips on how consumers can reduce their debt.

  • How much do you owe - the first step is to understand exactly how much you owe as well as the amount of interest you are likely to pay

    For example, if you owe R 18 000 at an 18% interest rate, and you want to pay-off the credit card in 12 months, your monthly installment will be R1 650.24 per month, with the total repayment being R19 802.88.
  • Formulate an action plan - it is essential to develop a comprehensive plan of how to reach your objective. However, the plan must be realistic and also take into account your other financial obligations.

    Also be careful not to be too ambitious as failure could set you back financially, leading to more debt.

    "Furthermore, once the plan has been developed, it is equally essential for you to stick to it. It should also be flexible enough to be adjusted should unforeseen events occur," advises de Beer.
  • Pay a little extra - paying more than the minimum amount required by your bank can help you reduce your debt quicker and help you save on interest.

    De Beer illustrates how much consumers could save by making an additional payment if they owed R10 000 at an interest rate of 18% and had to pay a minimum amount of R750 per month for 15 months.

    Additional monthly payment Months to pay the debt off Total interest paid Total interest savings Total months saved
    R50 14 R1 157 R83 1
    R100 13 R1 084 R156 2
    R200 12 R959 R281 3
    R500 9 R737 R503 6
  • Avoid spending needlessly - while your credit card can come in quite handy now in January, following the festive season spending spree, coupled with back to school expenses, try and avoid impulsive spending, which often leads consumers to buy what they do not really need and without first checking their budget.

"If the debt proves too much for you to handle on your own, or you find yourself unable to cope, consult experts for assistance," concludes de Beer.

What to consider when choosing an Executor in your Will


22 January 2018: Most people understand the importance of having a valid and up to date Will in place but few carefully consider who to nominate as an executor in their Wills. Your executor is not only tasked with the responsibility of ensuring that your wishes are carried out but also that all legal formalities pertaining to the estate administration process are adhered to.

"The estate administration process can be extremely complex and time consuming, combined with the trauma involved in losing a loved one. It is important to consider nominating an objective and competent professional as the executor in your Will. Trust is important and using a professional executor with the requisite experience can minimise the stress associated with settling your estate," says Vijay Morarjee, CEO FNB Fiduciary.

When nominating an executor, we suggest you consider the following:

Continuity

Relying on one specific individual may cause a delay in wrapping up your estate, they could possibly pre-decease you, retire or for any other unforeseen circumstances be unable to perform the duties that you entrusted them with. Consider nominating an executor, which doesn't rely on one specific individual but which has sufficient skilled staff to perform this function.

Accessibility

Keep in mind that your loved ones or beneficiaries might live in different towns and cities across the country or even abroad. It therefore makes sense to choose an executor that has sufficient regional and national representation which will aid interaction between beneficiaries and executor.

Skill set and experience

The most important consideration is that your nominated executor should have the skill and experience required to adequately perform this highly complex task. Nominate a specialist estate administrator with the necessary legal and tax knowledge. Many people nominate an executor solely based on the discount offered on executor fees without much consideration for the competencies and skills available.

Trust is key

Ultimately it all comes down to trust. Do you trust your nominated executor enough to step into your shoes and protect what is important to you, whilst having the necessary understanding of the estate administration process?

"Access an experienced and knowledgeable executor to guide you through the complex and time -consuming deceased estate administration process as well as help with the numerous practical tasks which need to be performed. It is a very difficult time for families and our team of specialists at FNB Fiduciary can assist with the administration of the most complex estates," concludes Morarjee.

Location is key when buying a house


16 January 2018: Many first time buyers who are excited about owning property often underestimate the importance of a good location, until area or neighbourhood challenges pressurise them to relocate.

Calvin Ndlovu, Head of Operations at FNB Home Loans, says before signing on the dotted line, take time to research the neighbourhood and make an informed decision based on your individual circumstances.

He advises potential buyers on what to lookout for when researching a neighbourhood:

  • Engage home owners - speak to various home owners in the area and find out what they love most about their neighbourhood and challenges being faced.
  • Houses for sale - check the rate at which houses are being sold as well as the reasons, if possible.

    More often, if many people are eager to sell, there could be a cause for concern. Similarly, if only few properties are sold, there's a likelihood it's a good neighbourhood.
  • Property prices - ask for area reports from your agent and check how prices have grown over the past five to ten years.

    If prices are not growing as expected, try and establish the rationale, while also taking economic factors into account.
  • Crime - although no area is a 100% crime free, some areas are of more concern than others. Area crime statistics can give you a good indication of what to expect.
  • Schools and Day Care - many first time property owners relocate to get closer to schools and day care for their kids.
  • Amenities - early morning traffic and travelling far to get to amenities can catch up with people in the long run. If you planning to buy outside towns think carefully about your decision.
  • Use technology - innovative tools like nav» Home which can be accessed via the FNB Banking App and Online, allow customers to access reports and get information on an area, price trends, points of interest, number of houses sold as well as area lifestyle characteristics.

"Taking time to plan ahead and research a neighbourhood when buying property will not only save you time and money, but will also give you and your family peace of mind," concludes Ndlovu.

Questions to ask before cancelling funeral cover


15 January 2018: Consumers who are struggling to make ends-meet should avoid making the rash decision of cancelling their funeral policies without first weighing the consequences.

Lee Bromfield, CEO of FNB Life, says given the high cost of living and uncertain economic environment, being caught off guard by a funeral, which may cost R30 000 on average, can place you in a far worse financial position.

He urges consumers to ask themselves these important questions before cancelling their policies:

  • Are you really saving? - keeping up with premium payments is unlikely to break your budget. Funeral cover is currently one of the most affordable forms of insurance available to consumers in South Africa. For instance, an adult aged between 18 and 64 can pay as little as R35-00 a month for R10 000 cover.
  • What are the consequences? - when your policy lapses, you will lose out on all the premium payments you had made.

    Furthermore, you and your beneficiaries would have to complete a six months' waiting period for natural death, if you were to take up a new policy.
  • Have you re-evaluated your budget? - don't opt to cancel financial commitments that you consider grudge purchases, but rather make an informed decision based a thorough evaluation of your financial position.

    Consider drawing up a comprehensive budget and separate needs from wants, to establish what you can really do without. This will help you save by cutting back on luxuries and ensure that you have enough money reserved for your needs.

    "If you are unable to resolve the situation by yourself, consider seeking expert advice," says Bromfield.
  • Do you have a plan B? - many consumers who have cancelled their policies and do not have an alternative often turn to unscrupulous lenders, such as mashonisa's, who can charge up to 50% interest or more on a loan.

"If you find yourself having to make tough decisions due to financial difficulties, always weigh the consequences and alternatives available before taking drastic measures that can expose you to even higher financial risks," concludes Bromfield.

FNB is Africa's premier banking brand


06 February 2018 - First National Bank was named Africa's leading bank in The Banker's, Top 500 Banking Brands Report 2018*. Ranked 141st in the global banking table, with a brand valuation of $1.4bn, FNB grew its brand value by 23% in the past year.

"Banking has evolved from being more than just banking to a lifestyle offering, that touches on the personal and emotional level of our customers. The success lies in FNBs ability to operate in challenging market conditions with changing consumer perceptions and dynamics. We fundamentally believe that understanding our customers' circumstance and context, plays a vital role in helping us maintain a strong and relevant brand," says Faye Mfikwe, FNB Chief Marketing Officer.

According to the report, the banks brand positioning campaign in 2017 redefined the concept of 'helpfulness' in the current South African and African context. Joy Macknight, Deputy Editor at The Banker explains that, "First National Bank made great strides in brand positioning over the past 12 months. Impressively, it moved up 16 positions in The Banker's Top 500 Banking Brands 2018 global ranking, to become the premier banking brand in Africa." The enablement of banking through our innovative customer centric products and services; coupled with the fundamental tenet of 'How can we help you?' has positively impacted the banks brand perception in all markets.

"Banking is a category that is a pivotal element in our customers' lives. Within an African context and especially as we enter new territories, we've seen complexity and vastness of banking products and solutions. The success of our brands positioning is measured on how well it resonates with our customers and is informed by their needs," says Mfikwe.

FNB continually invests in world-first digital solutions and big data capabilities to address customer needs. As the first bank in Africa to launch its own branded SIM and smartphones; FNB continues to pioneer digital banking revolution among its individual and business clients. Through its banking app, the bank provides customers with a one-stop-shop platform for all of banking services.

Mfikwe adds, "Buy-in to the brand's strategy also sits with our employees who have played a significant role in driving FNB forward. These ambassadors are the true custodians of the brand and through their effort and dedication FNB has grown in stature and reputation."

FNB has a proud heritage of 'Helpfulness'. "Adding this award to our list of accolades at the beginning of a New Year is a major achievement. It signifies that the brand is well-entrenched in the markets that we operate in and also equipped to work in new and developing markets. At the heart of any brand are the relationships with their customers. For FNB, these customers have played an important role in making FNB the best brand in Africa," concludes Mfikwe.

How SMEs could cash in on Black Friday and Cyber Monday


22 November 2017 - Provided that SMEs prepare ahead of Black Friday and Cyber Monday, there is an opportunity to leverage off the global hype, where some simple alignment to the theme can result in big benefit without much investment into promotion.

In the midst of low consumer and business confidence, tapping into the opportunities presented by these two days could contribute significantly to boosting the cash low of SMEs.

"To benefit from Black Friday and Cyber Monday, the two big focus points would be the thinking around what the business will offer to customers and how it will promote the offerings ahead of thees days. This allows customers to plan their purchases ahead of time, which also ensures traffic for the SME," says Jesse Weinberg, Head of the SME Customer Segment at FNB Business.

Weinberg provides useful tips for small businesses to help SMEs take full advantage of Black Friday and Cyber Monday:

  • Use social media - Businesses should make full use of social media as a tool to support their offers on these days. A powerful tactic seen recently is for businesses to actually ask customers what they might like to see as a special offering by the businesses to assess the potential demand from the market.
  • Gauge customer appetite - A simple poll survey offers great insights into what customers want. The real trick for business on these two days is to ensure that the special deals on offer will actually be desired by customers, especially if the business plans on taking on extra stock in for these specials.
  • Pre-promotion of specials - Another powerful example of using social media would be to communicate the specials that you plan on running on these days to create sufficient awareness and demand by persuading customers to plan their wish lists, with the idea that the special the business wants to run will be on their list.
  • Stock management - Businesses should avoid over-buying with the hopes of profiting from the additional demand. Getting in touch with customers may help the business buy the most desirable stock to ensure it sells.

"SMEs should take full advantage of special global trade days like Black Friday and Cyber Monday - it's like being able to plug your specials into someone else's marketing campaign for no extra charge," concludes Weinberg.

Egg prices may not be as festive


07 December 2017 - The price of eggs is set to increase further after a significant jump in the past few months, owing to the outbreak of the avian Influenza during 2017.

The influenza hit the poultry industry as it was starting to recover from the drought which saw many commercial and particularly small farmers struggling to keep up with the increase in the price of feed towards the end of 2016 and the beginning of 2017.

Paul Makube, Senior Agricultural Economist at FNB Business says, "The increase in egg prices is subject to demand and supply dynamics with the influenza outbreak having a major influence on the recent spike. The impact on prices has been more pronounced in the Western Cape due to the culling of layer hens and the subsequent supply shortages on the region's shelves."

According to the latest data from Statistics South Africa (StatsSA), the price of eggs increased by 8.5% year-onyear (y/y) during October 2017. This trend is likely to continue in the short to medium term as supply shortages are likely to last up to a year.

The impact on South Africa's consumer is likely to see egg prices increase in the range of 15% to 20% in the next few months. The industry has already recorded a 12% y/y decrease in the average weekly egg production during September 2017, according to the SA Poultry Association (SAPA). The cost of egg distribution is also likely to increase following the recent fuel hike which will eventually be passed on to the consumer.

Demand will however not change very dramatically with per capita consumption remaining around 7.9kg per person per year.

Makube says the downstream impact is that retailers will be selling eggs at higher prices this festive season, therefore consumers will pay more for a tray of eggs.

"The upside is that the price increase will help producers to recoup losses as they are still servicing debt incurred during the last drought. It will further place them in a better position to repopulate and increase their production which will eventually benefit the consumer in terms of an affordable source of protein," adds Makube.

The relatively lower maize prices will continue to improve the profitability of the sector in terms of low feeding costs. Maize prices have fallen by 53% and 38% from 2016, to R1,879/ ton and R1,827/ ton respectively for white and yellow maize.

Makube says there is limited upside for maize prices given the favourable weather outlook in the season ahead. "Hopefully, they will pass on the benefit to the consumer towards the end of 2018 given that recovery may take up to a year, and staples such as eggs will start decreasing in price."

The growing concern over the Western Cape


02 November 2017 - South Africa has almost escaped the grips of the drought that crippled a large part of the agricultural sector last year. In as much as the financial recoveries of the impact are still slowly being realised, the growing concern remains over the state of the Western Cape, where the drought is reaching a critical state.

"The Western Cape is the second biggest in terms of agriculture GDP with a share of 23% of the industry. The lack of water is a real concern as it has far reaching consequences for not only the industry, but the consumers too, as food prices may eventually be impacted," says Paul Makube, Senior Agricultural Economist for FNB Business.

Water levels in South Africa's dams improved marginally on the back of recent rains in some areas with gains in both the winter rainfall and non-winter rainfall areas of the Western Cape (WC). The weekly update from the Department of Water and Sanitation (DWS) showed a 0.7 percentage point (ppt) increase week on week (w/w) to 36.6% full relative to 61.3% during the same week last year.

"The main concern with these water levels is that at the current levels, the dams are expected to hold out up to about April 2018, if the situation does not improve significantly in the medium term we will have a serious water crisis in a region that makes up a substantial portion of the agricultural sector," adds Makube.

The impact of this on the businesses in this sector may also be quite dire. The agriculture sector is highly depended on the reliable and sustainable supply of water for irrigation of crops and sustenance of livestock. Upstream, it is required for processing of raw agricultural produce into different consumer products. The vegetable and fruit sectors are hard hit with planting for potatoes and onions in Ceres already reduced by some 80% and 50% respectively according to industry estimates. In the case of fruits, the quality and volume will be reduced. Longer term, some trees might have to be replaced with huge cost implications for the producers. The wine industry already projects a further decline in output due to drought and recent frost damage in the Breedekloof, Robertson and Worcester.

While the rest of the country is likely to yield more agricultural produce, the reduced output from the Western Cape is likely to slow down the rate of the decline in food prices, more so for horticultural crops and livestock.

"The current short- to medium-term forecasts indicate good rainfalls for most of the country. While the short term rainfall outlook still does not look good for the WC. We hope that the summer rains will help alleviate the pressure in the months ahead. The growing concern remains that the limited availability of irrigation water coupled with the lower soil moisture levels will reduce agricultural output for the WC," says Makube.

Tips for SMEs looking for returns this festive season


29 November 2017 - In a year that has seen minimal economic growth, many SMEs will have to make the most of the festive season to build cash reserves for the year ahead.

2017 has proven testing for many an entrepreneur; characterised by low growth, rising petrol prices, a drought in parts of the country and a negatively adjusted rating in investment grades. These factors have all contributed to a more strained consumer.

Mags Ponnan, Head of Customer Value Propositions at FNB Business, reckons that SMEs have to "box smart" to stay ahead this festive.

"Consumer spending will not go away, however people may simply spend more consciously than in previous years. To stay ahead, entrepreneurs must go into the festive with a clear plan."

Ponnan shares tips on how SMEs can be best positioned for a profitable festive:

Have a clear strategy ahead of the festive season - Ensure your stock levels are considered, placed in advance and arrange adequate storage capacity. Suppliers may also close for the season so a clear plan will ensure that you maintain correct stock levels.

Make use of communications platforms to let consumers know your season specials - SMEs do not have to spend an arm and leg to reach the consumer. You can make effective use of social media platforms to reach consumers with your specials for the season. This not only allows a cost effective form of communication, it also enables a two way conversation where the SME is able to receive feedback from consumers on what they think of the specials.

Keep your outlet open longer - Many consumers are on leave, they will therefore be spending longer hours in stores, being open for longer extends the possibility of a higher footfall into your store this season.

You must have an online presence - More and more consumers search for offers online, they do product comparisons, endorsements and even purchase online. To not be available online in the digital age is to impede on the extent of possible sales.

"SMEs must remember that the competition for a share of consumers' spending power intensifies in tough times. Businesses that have prepared long in advance are bound to win in the festive season," concludes Ponnan.

Global Entrepreneurship Week


Observations for entrepreneurs to consider...

There are no rules in entrepreneurship. People often wax lyrical around following certain formulae for success and globally millions of books are sold on the promise of riches. Sure, we can all learn from others, and it is true that successful entrepreneurs are open to learning, but there is no magic formula here. Having said that, as we kick off Global Entrepreneurship Week, I thought I would share some behaviours we at FNB Business have observed in successful entrepreneurs...so here goes!

  1. There is no such thing as a part time entrepreneur
    One cannot run a business part time if you want proper success. It is very rare that someone has a large day job as an employee of one company and at the same time runs a rapidly growing entrepreneurial business. Unfortunately, when it comes to entrepreneurship you cannot hedge your bets - you need to be all in.
  2. You need a business plan, and yes it must be written down, with financial projections. This is where most entrepreneurs fall short. Remember if you are launching a business, unless it is completely new technology or a novel way of doing something, you are merely displacing better established businesses... in other words you will always need differentiation. You must be able to articulate this and defend this - why will this work? A business plan also means sizing the opportunity and converting this into realistic revenue and profit - is this opportunity realistically going to generate enough profit based on the capital and effort I am putting into the business? How much money do I need to make this idea reach scale and where will I get this money from? You need realistic expectations of debt vs equity funding and understand the difference. Commercial banks do not fund early stage start-ups - this is outside their mandates as this funding represents EQUITY risk in most cases and commercial banks have senior debt mandates. There are many other sources of funding out there for e.g. FNB's Vumela Enterprise Development Fund which has raised around R400m in funding.

    Do your homework around the funding landscape.
    Understand your route to market properly - is this an app based solution? How do customers want to interact with my business? Can I differentiate myself through a channel? What is the most cost effective and customer friendly way for me to offer this product or service? Write down your merchandising plan including pricing; route to market; how you going to promote sales (the value offering) and where you going to sell the product (key 4Ps of marketing). If your business is app based you can't effectively launch this via print media...get professional advice on a marketing plan. It will be money well spent!
  1. Get good advice

    As stated above, this will cost some money but it will be money well spent. Make sure you get best advice when drawing up purchase and sale agreements; employment contracts; lease agreements; supply agreements, etc., etc. spending some money upfront on this will save you hugely in the future. I cannot tell you how many times we hear "if only we had prepared properly for this..."
  2. Invest in the A-team

    Your business plan will fail without proper execution and this depends on you getting a motivated and skilled team that buys-into the plan. You must attract and retain the best talent. Pay for results - let your team participate in the businesses success. Remember it is really hard to terminate non-performers so take your time in selecting your team - conduct proper interviews and assessments and be part of the recruitment of all key staff.
  3. Run a small business like it is a big business

    This is my last observation and probably the most important. Make sure you have proper governance in place including a budget; monthly management accounts allowing you to track your business case; regular team and management meetings; up to date tax affairs and other key regulatory returns. At the same time, have bold plans and dream big! Keep challenging yourself and your team.

    Good luck! I believe writing things down and checking your thinking is a great discipline - find the time to reflect on these points and please also visit https://www.fnb.co.za/business-banking/.

    I have a world of respect for all entrepreneurs - after all you are the future of this amazing country of ours.

Mike Vacy-Lyle
CEO FNB Business

Impact of bird flu on your pocket


23 November 2017 - In recent months, South Africa has been impacted by a strain of avian influenza HPAI H5N8 outbreak that has not only negatively impacted the already hard hit poultry and ostrich producers, but the reach of the flu has now begun to pull a strain on the pocket of the consumer.

Although the reach of the avian influenza is countrywide, the Western Cape, which is going through a drought, accounts for about 22% of the poultry numbers in South Africa, it is most likely to feel the pinch the hardest as it comes in the midst of water restraints.

The avian influenza is impacting all poultry producers around the country. Some of them are obviously directly impacted, where there is an outbreak, the rest is indirectly impacted. The ostrich industry will also be affected. The areas mostly affected are Mpumalanga, Gauteng and the Western Cape. The last one, most probably the most affected, while still battling with the drought as well. Up to September approximately 2 million layers where culled.

This meant that it will have a negative effect on the replacement layers for the future. Industry experts indicated that there will at least be a 55 day lag in producing new layers, which mean that the replacement layers will only be available by Christmas.

Impact on business

The confectionary (baking) industry will feel it as this impacts the price of eggs. The saving grace for the major bakeries is that they will most probably have contracts that will be fulfilled before supermarkets, but for the small bakery (home industries, SMMEs) the rise in prices due to the flu has the potential of being detrimental.

The feed industry is also impacted as a decrease in bird numbers means less demand for feed. The cumulative year-to-June broiler and layer feed consumption for 2017/18 has fallen by 4% relative to the same period during the 2016/17 season. This accounts for 55% of the total animal feed consumption as recorded by the Animal Feed Association.

Other related industries include people that clean the chicken houses. If there is no throughput from the chicken factories, it means nothing to clean, and therefore less work.

The impact at retail level

The good news is that it can just get better from here on. The industry has gone through a couple of challenges recently, In the latest SARS import data update, the total poultry imports jumped to 51,889 tons in September 2017, which is up 13% m/m and were 6% higher relative to the same month last year. The cumulative poultry imports for the nine months of 2017 reached 415,921tons, which is however still 2% lower relative to the same period last year.

Producers, who've managed to stay in business through all of these challenges, may have a better future ahead. Feed costs have come down, with the exception of imports related to the avian Influenza, as soon as the issue has been sorted, they will be able to produce again.

Impact of third petrol price increase on agriculture


30 November 2017 - In a year that has seen minimal economic growth, many SMEs will have to make the most of the festive season to build cash reserves for the year ahead.

The increase, once announced, will be effective from the first Wednesday of December, 6th December.

The impact on the agricultural industry will be mitigated by the mere fact that it is still high demand season, many farmers are planting at this time, therefore many will have purchased diesel in bulk in advance. The indirect impact will however be felt through increased transport inputs, which will eventually translate to the cost of goods and the transportation thereof and in the end, will be felt by the consumer end.

The petrol increase is also unfortunate news for consumers ahead of the summer holidays and festive season. Disposable income will be directly affected as transport costs will increase. Employees in the manufacturing, construction and mining sectors normally travel back to their traditional homes in provinces such as the Eastern Cape and KwaZulu-Natal and the expected hike will definitely result in increased public transport fees. The poorest of the poor will also see a hike of approximately 75 c/liter in the price of illuminating paraffin.

The second round effect through increased inflation will only be seen in a couple of months as the consecutive hikes in fuel prices filters through to inflation numbers.

Comment by Dawie Maree, Head of Marketing and Information at FNB Business Agriculture.

What to consider when planning for retirement?


13 February 2018: We will all reach a stage where we will have to retire from our jobs. When this day eventually comes, we need to ensure that we are in a space to retire comfortably.

Preenay Sathu, Head of Financial Advisory at FNB says, "We encourage consumers to start saving for retirement as soon as they start earning income. Long term thinking is encouraged when looking at retirement planning and the benefits thereof."

Sathu unpacks factors to consider when planning for retirement:

Age: While the retirement age in South Africa is 60 years, there are people who prefer to retire early (minimum age 55) so that they can travel or dedicate their time to non-profit organisations or simply spend time with their family. Taking these plans into account will help you ensure that you save enough to allow for comfortable retirement.

Debt: It is not advisable to rely on your retirement payout to settle debt. Your retirement income should be dedicated to sustaining your lifestyle and covering your daily living expenses. Settling your debt before your retirement is a critical step to helping ensure that you retire comfortably.

Monthly contributions: You need to ensure that you contribute enough to retire comfortably. Speak to a certified financial planner who will guide you to structure your retirement plan in accordance with your lifestyle and needs.

Financial discipline: To be able to achieve your retirement goal you have to be financially disciplined and have long term thinking. Investment returns and growth will be greater over the longer term thus allowing for greater opportunity for consumers to reach their retirement goals.

Retirement fund: For individuals who belong to a company pension or provident fund, it is advisable to still invest in a retirement annuity to strengthen your retirement income. Retiring with a healthy pension or provident fund and retirement annuity will help to boost ones retirement savings which will be used to fund individual retirement needs.

Review your plan: An annual review of one's retirement plan is vital to long term success. However in addition to an annual review individuals must review their retirement plan when there is a change in circumstances such as marriage or divorce, new born child, purchase of property, sale of assets and change in legislation.

"When advising clients on retirement planning, we always take a holistic view of a client by conducting a full needs analysis of their financial affairs, personal and financial circumstances which includes assessing dependency, estate structure, and current financial planning portfolio. This helps us gain a thorough understanding of the client as well as helps us identify their needs, wants and responsibilities. By doing this we are able to construct a retirement plan that aligns to the client as an individual and which is best positioned to help them achieve their retirement aspirations. Retirement shouldn't be a choice, but rather a destination. Let us help you get there," concludes Sathu.

Taking out debt for a bond deposit is risky


12 February 2018: First time home buyers often get caught by surprise when banks ask for a deposit in order to secure a home loan.

"When applying for a home loan, banks will access your credit status to establish whether you will be able to meet the bond payments. Depending on the outcome, you are either given a 100% bond or required to put down a deposit of between 5 and 20% of the loan amount," says Lee Mhlongo, FNB Housing Finance CEO.

To assist lower income first-time home buyers, most banks and FNB in particular, will grant the majority of customers 100% bonds without the need for deposits where customers meet affordability considerations.

However, when a deposit is required by the bank, many home owners who fear not being able to qualify, mistakenly compromise their chances of getting the home loan by taking out an alternative loan to cover the deposit.

"Taking out any form of loan while applying for a bond or during the registration process may result in the bank reversing its initial decision to grant you a home loan. This is due to the fact that your credit profile will be in a poorer state, as you will now be required to repay both your home loan and additional loan instalments monthly," says Mhlongo.

Furthermore, you also need to take into account that you will be required to pay bond and transfer attorney fees before the house can be registered. For a house valued at R500 000, you are likely to pay around R30 000.

Mhlongo says applying for a pre-approval from your bank can give you a good indication of how much you qualify for. This gives you an opportunity to start saving in advance for the deposit and attorney fees.

Moreover, being able to pay a deposit, when you qualify for a 100% bond improves your credit score, resulting in the bank offering you an even better interest rate.

First time buyers who earn a household income between R3 501 and R15 000 per month can also use the Finance Linked Individual Subsidy Programme (FLISP) from the government to pay the deposit.

FLISP offers qualifying consumers subsidies ranging between R20 000 to R87 000 once off, provided that they haven't benefitted from a government subsidy before and approval of the home loan from the bank.

"Keeping your credit record clean and saving in advance for a deposit and attorney fees before applying for a bond can give you peace of mind knowing that you stand a greater chance of qualifying and there are no surprise costs that will catch you off-guard," concludes Mhlongo.

Put your loved ones in a better financial position this Valentine's


08 February 2018 - Valentine's Day is synonymous with the traditional exchange of cards, chocolates, gifts and sharing a candle-lit dinner with loved ones. It not only signals appreciation and love for one another; but is also a life-long tradition that is celebrated in most parts of the world. Splurging on loved ones is great; but why not spoil your loved one with a gift that will put them in a better financial position. Ester Ochse, Product Specialist - FNB Advisory says that, "Valentine's Day can be a costly affair and we tend to overspend to show our appreciation in a number of ways. Given the times we are living in and rising household costs, we encourage consumers to think differently and consider buying gifts that will have a lasting impact and benefit in the long-run."

According to economic data site tradingeconomics.com, "Household Saving Rate in South Africa remained unchanged at 0.20 percent in the third quarter of 2017 from 0.20 percent in the second quarter of 2017. Personal Savings in South Africa averaged 4.84 percent from 1960 until 2017.

A revaluation of our current spending habits needs to take place sooner rather than later. This will help you identify and create a savings habit that will better your quality of life in the long-term.

"Look at investment products like a unit trust portfolio or even a Tax Free Savings account which will potentially help you reap higher returns, depending on the underlying asset class. These are great vehicles that will help you and your loved one start that savings journey. Not only will it help you improve your financial situation but will set you up for the future," adds Ochse.

Let's be honest, chocolates, perfume or leather handbags are more appealing than an investment product but the value and quality diminishes over time. Investment products are not seen as the most attractive or sought after gifts. For many investing is postponed to when they are older or wiser and is something that is not urgent.

"Rather invest now and grow your money over time for great returns and financial stability. This gives you the opportunity to build and continue creating your wealth over time. It's never too late to start investing, be it for you or your loved one," concludes Ochse

Money tips for graduates


06 February 2018: Many graduates can benefit by adopting good money management principles early in their careers to ensure a stable and stress free financial future.

"Whether you are entering the work environment for the first time, starting a permanent job after an internship or running your own business, taking control of your finances right now can help you avoid developing bad money habits which can prove difficult to overcome," says Lynette Kloppers, FNB Premier CEO.

She shares six money management tips for graduates to consider:

  • Save for retirement earlier - some individuals only realise half way through their careers that they will not have enough money to live off during retirement. This often results in them having to compromise some of their financial needs in order to make up for the shortfall.
  • Living beyond your means - although it is essential to spoil yourself and have fun when you start earning a salary, avoid getting into the habit of spending beyond your means. Try and separate needs from wants, and avoid living a lifestyle that leaves you unnecessarily indebted.
  • Good vs bad debt - not all debt is bad for you. Knowing how to use debt to get ahead in life, as well as using the right form of credit, forms an integral part of a good money management strategy.
  • Saving - regularly putting money away for personal needs, investments or emergencies cannot be over emphasized.

    "If you find it difficult to save on your own, set up a monthly deposit, where the bank can deduct money from your account and put it away for you," advises Kloppers.

    It is also important to take out cover for insurable risks to avoid paying from your own pocket when disaster strikes. Furthermore, if you already have a family or people depending on you financially, life cover should be considered.
  • Renting vs buying - making the right choice, depending on your individual circumstances can help you save money in the long-term. For example, it may be more cost effective to rent if you have a job that requires you to relocate regularly.

    Similarly, if you do not have a job that requires you to travel or relocate, buying the townhouse or flat you are staying in, is not only cost effective, but can be a good investment in the future.
  • Plan for holidays - try and plan a year in advance for expensive holidays. This will give you enough time to put money away. You can also benefit from massive discounts when booking flights and accommodation in advance.

"Although the above tips are not conclusive, they will give you a good foundation for managing money adequately. Also take into account that there isn't a perfect formula for handling money, as it all depends on your individual circumstances. The best approach is to have a plan in place, budgeting regularly and being disciplined when it comes to money matters," concludes Kloppers.

Social media scams to lookout for in the New Year


31 January 2018: As social media continues to gain prominence amongst South African consumers, platforms like Instagram, Youtube, Facebook and Twitter have also become a platform where fraudsters attempt to catch unsuspecting consumers off guard.

Kovelin Naidoo, Chief Cyber Security Officer at FNB, says although social media scams in South Africa are not yet prevalent, compared to our global counterparts; the reality is that they do exist.

"Given that the popularity of social media is set to remain for the coming years, consumers are encouraged to constantly educate themselves and their loved ones about the latest methods that fraudsters use to get hold of their victims' personal information," adds Naidoo:

  • Blackmail - never share personal photos or videos on social media that portray you in a compromising position as scammers can use these against you by threatening to send them to close family members or upload them on public platforms.
  • Phishing - beware of fraudsters pretending to represent your bank on social media platforms. Your bank will never ask for your credit or cheque card, account number, online banking login details or password or One Time PIN (OTP) on social media platforms.
  • Help and favours - be on high alert when asked for special financial favours or urgent assistance by strangers, no matter how caring or persistent the individuals may seem.

    Never share your banking details with strangers and think twice before sending money to someone you recently met online or haven't met in person yet.
  • Dating and romance scams - consumers who use social media platforms to meet companions or their life partners should lookout for fraudsters that play on emotional triggers to scam people out of their hard earned cash.

    Dating and romance scammers often lower your defences by appealing to your compassionate side in order to take advantage of you.

    Identity theft - avoid sharing personal information, such as ID, passport, drivers licence, payslip, bank statement, municipal or account statements on social media.

    Fraudsters can steal your information and use it illegally by impersonating you.

    Money laundering - scammers often trick people through social media platforms by claiming to have large sums of cash that they need to deposit urgently through a foreign bank account.

    Do not allow your account to be used by another person to deposit or transact on. This can put you in serious trouble with authorities as allowing proceeds of crime to be laundered through your bank account, knowingly or unknowingly, is a criminal offence.

    Furthermore, never open a bank account in your name on behalf of a person you have met on social media platforms, irrespective of the circumstances.

"When all safety precautions are taken into account, social media remains one the best platforms that consumers can use to keep up to date with the latest news and trends, interact and catch up with friends and family," concludes Naidoo.

Consumers are spending a large part of income on food, transport


30 January 2018: Food and transport tops the list of items that consumers spend their money on. This is according to FNB data that focused on the spending patterns of FNB Gold account holders who earn a gross income of between R7 000 and R25 000 a month, the data was collected from May to October 2017.

The data collected is based on point of sale transactions at various retailers and sheds some light on consumer spending patterns.

Of their total spend, Gold account holders dedicate about 28% to food and beverages; up to 13% goes to transportation, meaning these consumers will be relatively more affected by fuel increases and rising fares.

Khathu Ramoliko, Head of FNB Gold Sub-Segment, says "Unsurprisingly, food constitutes the biggest expenditure for most consumers, which means after spending on food, whatever is left is spread across other essentials such as healthcare (1.86%) and clothing (8.10%). While the price of petrol has gone down, expenditure on transport is likely to remain one of the biggest expenses for households but the strengthening of the Rand could ease the pressure on consumers."

FNB says consumers are also spending a notable amount of money on airtime and data, and while the average amount spent on airtime and data may seem small at about R262 per Gold customer, the frequency of purchases suggests that consumers spend on impulse as opposed to using properly structured telco packages which could help them.

"The use of the right telco package can be handy for people who struggle to manage their airtime and data spend. This is one of the reasons we offer customers the flexibility of managing both their banking and telco via our App," adds Ramoliko.

We encourage customers to learn how eBucks work to ensure they can get maximum value. Taking advantage of every benefit is crucial especially in these tough economic times where disposable income is either shrinking or stagnant. The best way to maximise eBucks rewards is by using the eBucks Dashboard, on the Banking App. The tool is personalised and designed to assist customers maximise their eBucks rewards.

"When it comes to deciding where and how to spend your eBucks, the options are plenty. What we have noted however, is that customers use their eBucks to supplement expenses such as fuel, airtime or data," says Ramoliko.

Customers can also get up to 40% discount on the eBucks online shop, or buy vouchers for varying monthly discounts at Checkers, Shoprite, Dis-Chem Pharmacies and KFC.

"As the new year begins, we encourage consumers to start the year right by setting realistic financial goals, budget property and spending wisely. Getting on track financially is achievable, and small determined actions will get you the results you want," adds Ramoliko.

Key franchising trends to consider for 2018


29 January 2018: The franchising industry has steadily shown adaptability to the tough economy by growing the sector 3,6% over the past four years - from contributing an estimated 9,7% to the country's GDP in 2014 to its recent figure of 13,3%. This trend is expected to continue in the same trajectory in the short-term and could possibly improve should SA see better economic growth.

According to a survey conducted by the Franchise Association of South Africa (FASA), 78% of most franchisors are optimistic about future growth in their businesses. Although this translates to positive sentiments, the franchising is still, like other businesses, also vulnerable to the economic headwinds. As a result, franchisors need to keep abreast of their operating environment.

Morne Cronje, Head of Franchising at FNB Business says, "2017 has been a very tough year for businesses and consumers. However, the sector continues to perform well gradually year in and year out. This is testament that franchising is robust and holds a key for employment and economic growth."

Cronje shares top trends to look out for in 2018:

The significance of online and social media - Traditional marketing is no longer the magic bullet as more people are starting to use social media to interact with brands, whether to express anger, inquire or to show appreciation. It is no longer about the question of should a business use social media or not, it is now more about how a business uses social media to better serve its customers.

Multi-brand franchisees - More franchisees are starting to jump into the bandwagon of having several franchisees on their belt not just having one, doing this helps to improve cash flow as well as the protection of the ups and downs in business.

Health and education - According to FASA, these two sectors are rapidly growing, because more people are starting to become health conscious, while on the other hand education is a priority for South Africa. As a result, there is a strong demand for these sectors.

Increased customization - Consumers have gained control of what they want; it is no longer about what do you have on the menu, it is now about how your product or service can be tailor made to what a customer really wants. For example, Brian Altriche, Founder of RocoMamas with 61 franchise outlets is of the view that, his business model clearly responds to the essence of this trend by allowing consumers to create their own burgers as they want.

On-demand products/ services - In this fast paced environment customers control their experiences by wanting products or services that speak to this need. Franchisors who want to expand their business should start exploring this trend.

"2018 will no doubt bring its challenges, however for every challenge there is a window of opportunity to explore. We are advising franchisors to scrutinise these trends carefully, it can definitely give them a boost for 2018," concludes Cronje.

Five things SME's need to be thinking about in 2018


22 January 2018: In 2018, small-to-medium-sized enterprises (SME's) will be looking for a glimpse of inspiration to chart a new growth path and scale their businesses. This is off the back of a tough 2017 and previous years which have inhibited the growth of local SMEs.

Jesse Weinberg, Head of the SME Customer Segment at FNB Business says "Small business success becomes a monumental task when there's arguably very little to no real economic growth overall. However every challenge presents an opportunity, and in South Africa, not only are we fortunate to consistently have SME development as a key objective on the national government agenda, but most corporates are also hungry to shift spend to smaller businesses as part of the procurement policies."

Weinberg says as 2018 begins in earnest, there are some important insights that business owners should consider in order to grow their businesses.

  • The digital economy is in full swing - SME's that are comfortably operating without adopting digital technology in their business will likely be outperformed by their competitors unless they adapt to the current reality. Across the globe, consumers and businesses are rapidly migrating services to digital channels for its sheer efficiency, convenience and scalability. This includes basic elements like digitising accounting processes with software, through to using social media to campaign to customers. If you're ever unsure where to start, start by observing your customers and listening carefully to how they expect to be dealing with a business like yours - you can't go wrong by putting yourself in your customers' shoes and then reflecting on your business through their eyes.
  • Expect little to no help from the economy - The Word Bank recently predicted that SA will grow at roughly 1.1% in 2018 and while this is not cast in stone, it's a relatively firm indicator that SME's will have to do the hard yards to engineer any form of business growth. The focus should thus mainly be on differentiating your business, products or services from your competitors through marketing or even innovation if possible.
  • Maximise your banking relationship - Banks are investing a lot of time to understand the needs of businesses and have some of the tools to help SME's run efficiently. The relationship should not be only be limited to just banking. With the multitude of rewards and value-add services offering by most banks, with just a bit of time spent understanding the offerings, great value can be derived for you and your business. Examples of these offered by FNB include eBucks rewards, free Instant Accounting software and CIPC registration services.
  • 'Think Local, Act Global' - Your business may be based in South Africa but its potential to scale shouldn't be hampered by your location. In other words, be open to the opportunity of growing your business beyond South African shores, especially if your service or product has universal appeal and relevance. With global marketplaces such as Alibaba and AirBnB, the world market has never been more accessible and easier to do business with.
  • Avoid the race to the bottom - Market forces continue to show that consumers aren't only focused on the cheapest product or service despite the tough economic conditions. These days offering great service will build trust and loyalty with customers and keep them coming back. If you combine this with good quality, accessible products and services you will generally have an edge over your competitors offering the same or similar products and services.

"Even though 2018 is unlikely to come with an SME development boom, a solid homegrown business can still grow sustainably. More than ever, business owners need to arm themselves with as much information and insights as they can to grow their businesses or even reduce the risk of total business failure. With South Africa's level of unemployment showing little to no signs of reduction, we need to sustain the spotlight on growing our SME sector and offering as much support to it as possible. SME's represent one of the most effective ways to create employment in local communities, especially if these businesses find ways to trade with customers beyond their normal operating territories." says Weinberg.

Franchising sector - The year that was


17 January 2018: 2017 has been a year fraught with challenges for both consumers and business alike. South Africa has however remained an eye-catching destination for international brands looking to expand their businesses; none show this more than franchising in South Africa.

Morne Cronje, Head of Franchising at FNB Business agrees that even in what is said to be tough year, South Africa has managed to attract global franchise brands.

"A recent example of a global franchise brand coming into South Africa is Popeye's, an American brand best known for its spicy Chicken. They launched here in July 2017. That is on the back of Krispy Kreme and Burger King having recently launched too - even with our challenges, we still offer growth opportunities to global entities. "

Cronje shares key take outs from the year that was in franchising:

More clothing & fast-food brands: Retail franchising continued to grow in 2017. Over the past few years, we have seen more global brands like Burger King, Dunkin' Donuts, Pizza Hut, Krispy Kreme, Dominos, Starbucks and clothing brand Cotton opening their stores in South Africa.

Growth in quick-service restaurant segment: People still value a restaurant experience. Consumers, though looking for convenience and reasonable options, still value the idea of sitting and enjoying a meal in the traditional sense. More businesses have now jumped on this bandwagon and we are starting to see more and more that fast food spaces are also playing in the "sit-and-serve" space.

Use of Online and digital channels: More franchises have embraced online and mobile methods technology to reach their customers faster, easier and relatively cheaper than the usual above the line approach. We are also seeing businesses receiving online orders from their own or third party apps which enable the consumer to order from wherever they are and whenever they want to.

Value for money: In these tough economic times, consumers will continue to ask why they should spend money in your business. If businesses ignore this, consumers are likely to shift their attention to competitors.

"As we wrapped up 2017, it is important for the franchising sector to reflect on the trends that shaped the year that was. In my view, franchising remains one of the key sectors that will continue to grow steadily despite the slow growth environment. This is a trend that we have been monitoring without fail over the past years," concludes Cronje.

Bounce back after the holiday season!


11 January 2017 - The holiday season is over; and as we head back to work and plan for the next school year, we need to relook our budgets; given that pay day is still weeks away.

The festive month-long holiday with family and friends was great but now consumers need to plan for the year ahead. January is a great time to re-evaluate and look at your goals for the year; which should focus entirely on budgeting and saving.

"We underestimate the value of saving and often end up wishing that we had saved from the very beginning of the year. The extra money saved could benefit you and your family in the long run for those events that you planned for and for those unforeseen circumstances," says Ester Ochse, FNB Financial Advisory, Product Specialist.

Managing budgets on a month-to-month basis can help in ensuring that you are well off financially for the year in question. Ochse answers 6 questions to help you manage your finances better in 2018:

  • How do I get started and ensure that I better manage my money in 2018?
    Do a situational analysis on your current environment, the year that has been and the year ahead. Identify areas where you have overspent, wasted money or saved. We often overspend on items that we think are important, but in the end realise that it was not a genuine needs.
  • How do I identify my needs, wants and responsibilities clearly?
    This model is a great way to sum up what is important and what is needed in your life.
Needs Wants Responsibilities
Refers to items that you need on a regular basis.
i.e. education, retirement, savings, and household groceries.
Is secondary to your needs and things that will better your life.
i.e. leather boots, new car, new phone or even a holiday.
For both you and your family.
i.e. ensuring that your child gets a good education; that your family is safe and secure and looking at your overall wellbeing.
  • What will be my goals and objectives for 2018?
    Setting goals constructively helps you focus on what you want to achieve. Identify your long-term and short-term goals upfront.
    • Long term goals could be: plan a great overseas holiday, saving for your child's University fees, retirement, extending your property or buying a new home.
    • Short term goals could be to: save for a car, birthday, gifting or home décor, etc.
  • How do I draw up a budget?
    Open up an excel spreadsheet and note down all of your upcoming expenses for the year. Look at the previous year and identify what your expenses, liabilities, assets and savings were and add this to the 2018 budget sheet. Remember with inflation these costs may go up each year.
  • How do I keep track of my money?
    There are many useful apps that will help you keep track of your daily, weekly and monthly spend. You can also use your bank statement as a way to keep tabs on what comes out of your account. This will help you determine where there is an unconscious spend that could affect your pocket; which will help you stick to your budget and SAVE money.
  • What about the economy?
    We live in an uncertain economic environment. As such, we need to ensure that we are well equipped to manage unnecessary expenses should they crop up at any time. Big or small, such expenses can cause a huge dent in your pocket, but if you prepared - you will be able to manage them effectively.

"As we begin 2018, we should be cognisant of the environment, global trends as well as industry related events that could affect the economy of South Africa; bearing in mind that the cost of living is constantly increasing. Don't delay saving now for a better future. You may feel the pitch in your pocket or purse today but these initial steps will definitely benefit you in the long term," concludes Ochse.

Have you set your financial new year's resolutions?


10 January 2018: It's a New Year, and for many people this is the time to start afresh by setting new goals. In the midst of setting new goals, it's important to also include financial resolutions.

Eunice Sibiya, Head of Consumer Education at FNB, says "facing up to one's financial situation is not the easiest of tasks, especially when things are not looking good. Having come out of the festive season, it's possible that some may have misspent their hard-earned money on festivities. The beginning of the new year is an opportune time to look back at financial mistakes committed in the past and chart a way for a new start."

"Getting your finances in order takes a lot of commitment and dedication, it's not a once off process, and it may require facing some hard truths about your spending habits."

Here are a few questions to help you to gauge if you need to relook your financial position:

Are you in a financial whirlwind?

The ideal situation is to track what you are spending on. If you are unable to track your expenses, even the smallest amounts, then it's time to pause and take a proper look at where your money is going and if it's being spent wisely. This is the only way to put a lid on wastage.

Do you have financial goals?

Set financial goals, a budget and put a timeline to accomplishing them. For example, you may want to devise a plan for settling all or part of your debt, or start saving and investing. It all depends where you are now and where you want to be. While it's good to set goals, following through is important - you must commit to your goals.

Do you give into societal pressure?

One of the reasons some people never have a firm grasp on their finances is because they succumb to societal pressure. Understand your personal financial aspirations and work towards them, never try to mimic the lifestyles of others because everyone's personal circumstances differ. Have your plan and stick to your financial plan.

How can I avoid wastage?

Sometimes it can be difficult to spot wasteful spending simply because once you have fallen into the habit of frivolous spending it's hard to stop and take note. The most effective way to identify wasteful spending is to have a budget in which you record expenses, both fixed and unfixed. A budget will help you have a clear sense of where your money is being spent and enable you to pick up areas where wastage occurs. Monitoring your statements will help you identify financial lickages.

Do you have savings?

Remember, it's never too late to start saving, whether it's for emergencies, education or retirement - if you haven't started don't procrastinate further. Start doing some homework about the different options that are available for you to start saving. While you may have to play catch up in areas such as retirement, it's better than not having any savings at all.

"Looking at your finances is something that should be done on an ongoing basis and not only at the beginning of the year. The start of a new year is, however, a good time to look back and see what you can improve upon financially," concludes Sibiya.

SA's medical tourism an untapped treasure-trove


15 January 2018 - Medical tourism is an avenue that is often overlooked when considering tourism in South Africa, even though it is set to grow globally at an estimated 15% annually.

Research by SA Tourism indicates that foreign spending on medical care in South Africa has increased from R582m to approximately R916m in 2015, as the number of tourists originating from Europe and those coming by air from other African countries has increased.

"Travelers coming to South Africa for medical treatments do so for cost savings, South Africa's infrastructure, medical technology, qualified and skilled doctors at an international standard, and most advantageous is the fact that the English language is widely spoken in South Africa," says Charnel Kara, Tourism Specialist at FNB Business.

Globally, medical tourism is estimated to be worth between $45 billion and $72 billion. It is estimated that this industry will continue to show growth of between 15% and 25% each year, making it a growth industry that medical entrepreneurs could build a business towards. "A substantial portion of medical tourists to South Africa originate from our neighbouring countries. We are also seeing a growing number from Europe and countries such as the Democratic Republic of Congo and Nigeria, says Kara" .

She explains that the downstream impact of medical tourism acts as an important feed into the rest of the tourism industry.

"The average tourist stays in South Africa for an estimated 6 days. This means hospitality services, tour operators, transport, retail, wildlife and seaside attractions, spas and wellness centers all have an opportunity to gain from a medical tourist visiting South Africa."

"Businesses can tailor or enhance their product offering to cater to this growing demand. Offering products with pricing and services tailored to suit the needs and requirements of travelers that are going to have or have had medical procedures can diversify a business's product offering and add to their revenue stream," she adds.

South Africa has the infrastructure along with the medical professionals to take full advantage of this largely untapped market. The success of medical tourism in SA will largely depend on the exchange rate, prices, quality and diversification of procedures, in tandem with medical care and hospitality services offered to potential medical tourists.

"For South Africa to become a leading and sought after medical tourism destination globally, it is imperative that businesses within the medical and tourism spheres leverage off synergies and work together to provide a seamless and holistic offering to this growing sub sector, we have all the moving pieces in place, now we just need to put them together to amplify it," concludes Kara.

Angel investing mistakes to avoid


05 February 2018 - Wealthy individuals and families who are looking to diversify through angel investing, by providing resources or capital in exchange for a stake in promising businesses, should be wary of the inherent risks involved.

Eric Enslin, CEO of FNB Private Wealth and RMB Private Bank, says South Africa has a number of highly capable and innovative entrepreneurs who are willing to share a portion of their ventures with investors in order to get a head start. This presents endless opportunities for wealthy individuals who have a keen eye for talent and are eager to back viable concepts and business plans in order to make a good return.

"However, angel investing remains risky and can result in financial losses if proper due diligence is not conducted," cautions Enslin, as he shares some of the common mistakes to avoid:

  • Expecting guaranteed success - to be a successful angel investor you need to have an appreciation for entrepreneurship.

    Given the high failure rate of new businesses that get started in South Africa, you have to make room for failure, as success is never guaranteed.
  • Anticipating quick returns - notwithstanding the quick success rate of some businesses, the reality is that you may only begin reaping the rewards after five to ten years. Therefore, patience is key.
  • Investing in expert advice - this is essential and forms part of the due diligence process. You need to be adequately informed about the industry sector, type of business, current and past trends, as well as risks, in order to determine if you are making a good investment.

    Seeking advice from knowledgeable experts who have earned their stripes in this field can only work to your advantage.
  • Placing too much emphasis on the concept - although you may have been attracted by an innovative concept that you anticipate disrupting a particular market, there are many other qualities and characteristics that determine the success of a business.

    For example, a comprehensive and succinct business strategy, drive and determination of the leadership team, passion, risk appetite, expertise, financial management, regulation and business culture, amongst other factors.
  • Not playing an active role in the business - angel investors often offer more than just capital injection. This can be in the form of mentorship support or offering strategic direction as an executive board member.

"Angel investing forms part of a long term investment strategy and should therefore, not be rushed into, but rather carefully considered and researched in order to prevail as part of a sustainable wealth plan," concludes Enslin.

5 trends shaping the insurance industry in 2018


23 January 2018 - As the insurance industry continues to evolve while facing new challenges, catastrophes, technological disruptions as well as uncertain, volatile and complex economic conditions, insurers and brokers have no choice but to adapt to constant change in order to thrive.

According to Malesela Maupa, Head of Insurer Relationships at FNB Insurance Brokers, there are five key trends that are likely to shape the South African insurance industry this year:

  • Regulation - regulatory changes will be at the top of the agenda for insurers as they ensure that their businesses comply with key amendments impacting the entire financial services industry, namely:
    • Retail Distribution Review (RDR) - revolutionises how financial services companies offer advice and distribute products to customers.
    • Twin Peaks - introduces a new prudential regulator located in the South African Reserve Bank (SARB) to ensure that consumers are offered more protection and make the financial services system more resilient.
    • Policyholders Protection Rules (PPRs) amendments - aim to improve market conditions in the insurance industry and further ensure that consumers get access to adequate products.
    • Protection of Personal Information Act (POPI) - regulates how customer data is managed.
    • Treating Customers Fairly (TCF) - ensures that all financial institutions adhere to the required customer treatment standards.
  • Climate Change - the increase in the frequency and severity of extreme weather conditions, coupled with intensifying natural catastrophes will continue to have a significant impact on clients and ultimately on the bottom line of insurers.

    "Natural catastrophes, business interruption and cyber incidents are the top three risks that clients should protect their businesses against to avoid incurring severe financial losses," says Maupa.
  • Stringent underwriting measures - due to the ongoing strain endured by global reinsurance and insurance markets as a result of increasing catastrophic losses and insurance costs, we are likely to see more stringent underwriting and proactive risk management measures being taken.
  • Products innovation - insurers will continue working around the clock to develop innovative products that meet the ever changing needs of customers.

    "For example, as South Africa increasingly becomes a litigious country, more liability based products like Social Media Liability cover are being introduced in the market," says Maupa .
  • Technology - traditional insurers will be required to put in more effort to catch up with start-up disrupters who are progressively using technology and data analytics tools for policy management and administration, amongst other innovations that challenge the traditional insurance model.

"Given the unprecedented challenges and changes that continue to shape the global insurance industry, it is essential for insurers and brokers in South Africa to always remain prepared, be a step ahead and flexible enough to navigate uncharted territories," concludes Maupa.

FNB enhances USSD card maintenance functionality


09 January 2018 - FNB customers who actively use cellphone banking will now be able to fully maintain their bank cards without having to walk into a branch.

The bank has enhanced card management functionality on USSD by empowering customers to activate, view and change pin, temporarily block and unblock their cards. Previously, customers could only view card details, update limits and cancel their cards.

Ryan Prozesky, CEO of FNB Consumer Core Banking, says the cellphone banking card maintenance updrade is aligned to the banks' broader strategy to migrate customers to digital and electronic banking channels, where most transactions are offered for free, at any time of the day, without having to physically go into a branch.

This service is not only intended for cellphone banking users, but offers all FNB customers more choice as to how they prefer maintaining their cards, whether through ATMs, FNB Banking App, Online Banking, Cellphone Banking or through a branch.

Many lower income earning customers who do not have access to smartphones, data or the internet, often have to spend time and money travelling to a branch, in order to unblock a card when a pin is inserted incorrectly or forgotten. This will no longer be necessary due to the enhanced card maintenance service.

Furthermore, after receiving a new card from the courier, customers are able to activate it immediately and also change the default pin.

As a security measure, only customers with trusted devices will be able to access this service. This means that the customer should have recently performed a financial transaction through cellphone banking and must not have done a SIM swap for at least two weeks.

"Our aim is to improve customer experience and add value by allowing a wider range of card services through cellphone banking, which remains one of the preferred means of banking for some of our customers," concludes Prozesky.

Customer should dial *120*321# on their mobile devices to access cellphone banking.

FNB produces strong results despite tough conditions


05 March 2018 - FNB produces strong results despite tough conditions

*Africa's leading banking brand

Financial Highlights:

  • Overall profits up 11%
  • Profit before tax grew 12% in the domestic franchise
  • Customer numbers above 7.8 million
  • Digital and product migration strategies continue to progress
  • Switching, upsell and cross-sell strategies continue to be effective
  • Digital platform evolution sees aggressive growth in usage, with APP volumes surpassing online in key segments.
  • NIR up 11% and bad debts were well contained

Profits from FNB's Retail business surged 21%, while the bank's Commercial business units produced profit growth of 13%. The results were robust given modest advances growth.

The bank's Retail businesses experienced excellent contributions from its client franchises; credit card, residential mortgages and the transaction franchise all showing strong double digit growth. Credit card earnings were buoyed by a 20% increase in advances in the upper end of Retail (Premium) whilst bad debts remain well-contained across the book.

Performance in residential mortgages was a story of improved margins, excellent collections performance and cost-containment. The core transactional business which services Consumer and Premium segments both produced strong results, benefitting from transaction volume and active customer base growth.

FNB's Commercial business demonstrated resilience with profitability up 13%. Performance was underpinned by excellent contribution from the transactional business segment in Commercial, where growth in the active base lifted profits by 12%. Key areas such as Agriculture and Forex delivered strong growth, and all other business units surpassed last year's performance.

Says Jacques Celliers, FNB CEO "The excellent results reflect the strong momentum we've created over the last few years. Our cross-sell and upsell strategy was supported by very strong new-to-bank sales performance across all key channels."

"The technology and data driven platform evolution amongst others has seen significant adoption by our customers, particularly the FNB App that experienced continued growth and increased customer usage. We are particularly pleased about the number of visitors who are experimenting with new functionality on the platform," added Mr Celliers.

"The 11% growth in profitability shows an all-round strong team performance. Deposit growth and strong contribution from our market leading transactional franchise underpinned an excellent domestic performance. The contribution from our African subsidiaries improved from the prior period," continued Mr Celliers.

FNB continues to invest in digital platforms and its digital migration strategy, which has been very effective in the consumer businesses, is benefitting Commercial with APP penetration and usage continuing to grow aggressively.

"Our client-centric approach is delivering results and we have been recognized for our market leading position in key Business and Premium banking areas. The focus on customer needs continues to see improvement in client product take-up, which talks to our main bank strategy and our commitment to offer a full service offering to clients," says Mr Celliers.

The bank's cash migration strategy, which continues to effectively move activity from branch to ADT and cash centre to SmartBox technology, has allowed the bank to optimise branch sizes and rationalize the expensive telling infrastructure while leveraging branch capacity towards value adding sales activities.

The improvements are enabled by:

  • Declining branch deposit volumes and values
  • Improving ADT (Automated Deposit Terminals) utilization
  • Significant improvements in sales productivity
  • Optimising branch cost base

The digital strategy has seen sharp increases in APP registration and usage showing:

  • APP usage up 66%
  • Financial transaction volumes up 10%
  • Active clients on Connect now over 600 000

Insurance activities have also seen excellent growth with the policy numbers now well over 3 million. Key policy information is now also available via the APP, with simple Life Assurance being executable across digital platforms.

FNB's investment pillar is being rejuvenated with product and service offerings being enhanced. The bank is focussing on goal-based advice. Significant investment in systems (Robo Advice) and client-facing channels is expected to contribute substantially to revenues in the future.

"We are grateful to our clients for their loyalty and the enthusiasm with which customers use our new services and digital banking channels. I am humbled by the effort of FNB staff who have remained deeply committed and innovative in a challenging operating environment," says Mr Celliers.

"The FNB strategy of cross-sell and upsell built around sweet spot clients continues, as does the ambition to enhance earnings through building our FNB Insurance and Investment offerings.

We are cognisant of the importance of platform-based thinking; there are a string of exciting developments which are scheduled for this year which will continue to differentiate our digital offering," concludes Mr Celliers.

Should you sell your investment property?


14 March 2018: A decision to sell a long term asset such as a property can sometimes be a challenging decision for an investor, more so for a novice investor.

"Every property investor will be confronted with this question at some point in their investment journey. Therefore, knowing when to sell or hold your investment property is essential when building a portfolio," says Praven Subbramoney, CEO of Private Bank Lending at FNB.

"Due to the long-term nature of the property investment journey, the general rule is that property should at least be held for five to ten years to allow the investor enough time to study market conditions and further assess the viability of their portfolio," he adds.

Subbramoney unpacks some of the reasons why investors end up selling their properties:

  • Exit strategy - some investors venture into property having already developed an exit plan, which consists of selling the properties and using the funds for alternative business interests.
  • Recycling equity - this involves selling a property and using the equity to buy a better performing one. When going for this strategy, it is essential to take into account the costs involved in selling and acquiring a new property and whether the returns will be better in the long-term.
  • Poor performance - if a property fails to provide good rental yield and capital returns for at least five to 10 years, it may be considered to be performing poorly and eventually sold.
  • Diversification - property investors may sell some of their properties to unlock capital and diversify their financial risk into another asset class, such as listed equities.
  • Deteriorating neighbourhood - selling property due to unfavourable changes in the neighbourhood is common for inexperienced investors who did not conduct proper research when acquiring the property.

    This could also have been the investor's former place of residence, which they decided to rent out after moving out.
  • Life changing events - major life changing events like getting married or having children may lead investors to sell their properties and seek a new direction in life.
  • Market timing - new investors who do not adequately understand how the property cycle works may be tempted to sell when market conditions seem unfavourable.

"There are many circumstances and underlying factors that may lead you to consider selling or holding your investment property. The decision should ultimately be based on your current circumstances, investment strategy and what you aim to achieve," concludes Subbramoney.

FNB life surpasses 1 million funeral policy milestone


12 March 2018: FNB Life has significantly increased its market share in the funeral insurance industry and has now surpassed the 1 million funeral policy milestone. FNB Life has over 3 million policies overall.

This makes the insurance distributor and administrator one of the fastest growing and biggest funeral insurance providers in South Africa.

Nthabiseng Sethabela-Makoeng, Product Manager at FNB Life, says being able to successfully carryout our strategy and still have good prospects for even further growth, at a time when the insurance industry and economy is severely under pressure, is an important and positive milestone in our journey.

"Our customer centric business model which leverages our existing banking infrastructure and expertise to provide consumers with the most innovative, accessible and affordable funeral insurance products in the market is what has led to our growth," says Sethabela-Makoeng.

She says since entering the market a few years ago, a lot of work and effort has gone into simplifying and promoting product transparency to give customers value for money while also ensuring that cover is easily accessible to a wide range of consumers across the country, regardless of their geographical location.

"These product attributes, coupled with the credibility of being backed by a trusted and valued bank is what differentiates us from our competitors," says Sethabela-Makoeng.

There has been a fundamental shift in the market with more consumers beginning to place emphasis on financial planning and having cover in place to cater for unforeseen events, like a funeral.

"We are confident that our funeral insurance product is well positioned to cater for the needs of this market, and will continue being relevant, not only due to its cost effectiveness, but the added value and rewards offered to customers," says Sethabela-Makoeng.

FNB customers can conveniently take up funeral insurance through online banking, branch networks, call centres and over 6 000 FNB ATMs and Slimline devices across the country.

The bank also boasts one of the best and efficient funeral claims processes by having direct access to the National Populations Register.

"Following the submission of a notice of death form, FNB Life obtains or verifies death certificates through the National Population Register from the Department of Home Affairs and this improves the speed at which beneficiaries are paid out for valid funeral insurance claims. As a result, we currently pay out 11% immediately and over 80% of claims within 24 hours if all the relevant documents have been provided to us," says Sethabela-Makoeng.

"FNB Life also routinely checks if any of the policy holders are deceased, even if a claim has not been submitted. As a result, we are currently following up on over R130m worth of claims (R54m for funeral insurance), which have not been submitted. This adds great value to beneficiaries who get to find out that they are getting paid on policies they never knew existed," says Sethabela-Makoeng.

FNB Life has further integrated its leading multi-partner eBucks Rewards Programme into its funeral product, allowing policy holders to collect reward level points and receive up to 15% of their monthly premiums back in eBucks, provided they have met the qualifying criteria.

FNB Life offers funeral policies with cover options from R20 000 to R100 000 and up to 21 family members on a single plan.

Key benefits of good debt


07 March 2018 - Despite the negative connotations often associated with debt being bad for consumers, when used responsibly, debt can add significant value by helping consumers manage their financial affairs and progress in life.

Lynette Kloppers, FNB Premier CEO, says the ongoing debate around what makes good or bad debt is as old as the origins of money. Debt can either be classified as being good or bad depending on how you use it, as well as its overall impact on your financial position in the long term.

Kloppers unpacks some of the benefits of using debt wisely:

  • Wealth creation - when used to buy an investment property that will later pay for itself through rental income can help consumers build future wealth.
  • Debt consolidation - this allows consumers to combine the debts that they have with various credit providers into one convenient loan. They will then get to enjoy lower monthly repayments and gain more control over their finances.
  • Personal cash flow management - using short-term debt like a credit card to manage your monthly budget and still be able to pay off the debt interest free, within 55 days, can help you manage your personal cash flow.
  • Career growth - for example, if you work in an industry that requires you to constantly be on the road, using vehicle finance to purchase a car could potentially put you at an advantageous position by enabling you to do your job more efficiently and eventually help you to progress in your career.
  • Education - taking out a student loan in order to graduate and secure a credible job has far more value for you in the long-term.
  • Entrepreneurship - many aspiring entrepreneurs often have to take out a loan in order to fund a solid business idea that has potential to grow with good returns.

    When the business finally takes off, the entrepreneur can start paying back the loan with the profits they make, putting the business on a good footing and setting it up for sustainable long-term growth.

"When using credit, it is equally important to carefully consider your needs in order to identify the right type of credit for your particular situation, to avoid paying more on interest in the long run. This is the biggest mistake that consumers make, often leading good debt to be viewed in a negative light," concludes Kloppers.

Factors to consider when ceding your life policy


19 February 2018: Many consumers who are eager to finalise the house buying process often rush into taking out and ceding life insurance without first doing their homework.

The ceding of a life policy involves legally transferring a portion of the cover amount to be used as collateral by a creditor in the event that the policy holder is unable to meet their debt obligation.

Lee Bromfield, CEO of FNB Life, says when applying for a home loan, banks may require that you take out life cover as security if you do not meet a certain salary bracket. The life cover is then ceded and used as collateral against the home loan to ensure that your loved ones or beneficiaries still have a home in the unfortunate event that you pass away.

He unpacks key factors to consider when ceding a life policy:

  • Cover amount - when ceding an existing life policy, it is recommended that you increase the cover amount to avoid leaving your beneficiaries underinsured in the event that you pass away. This is because a portion of the cover amount will now be used to settle the home loan.

    "You also have the option of taking out a new life policy or mortgage protection plan if you do not want to interfere with your existing policy," explains Bromfield.

    If you are taking out a life policy for the first time, consider a higher cover amount to ensure that your family or dependents are also protected financially in the event of death.
  • Inform beneficiaries about the cession - it is important for your beneficiaries to understand how this process works to avoid unnecessary complications should they have to claim.
  • Joint home loan - when applying for a joint home loan, the bank may require both parties to take out life cover to insure their respective portions of the loan, should one or both of them pass away before settlement.
  • Home loan settlement - when the home loan account has been settled and closed, it technically means the policy is no longer ceded. It is therefore important for you to immediately follow up with your lender and insurer to update the status of the policy.
  • Ceding conditions - before ceding, familiarise yourself with the terms and conditions stipulated by your lender, to understand how they impact your life policy.

"Although home loan providers may make it mandatory for you to have life cover in place, it doesn't mean you shouldn't take your time to go through the policy wording or seek advice when you need clarity. At most, you will delay the process by a day or two, while making sure that you are adequately covered," concludes Bromfield.

FNB branches leading digital banking adoption


14 February 2018: FNB says its branches are playing a pivotal role in introducing customers to digital banking channels in order to bank in a convenient and affordable manner.

The bank revealed that over the last year, its branches recorded the highest number of customers that migrated to the FNB Banking App, Online Banking and Cellphone banking for day-to-day banking.

"The major driver has been our effort to show customers how easy, affordable and safe it is to use digital platforms, including self-service channels such as automated deposit tellers (ADTs) that are available across most FNB branches. This digital journey is enabled through sustained investment in digital infrastructure which continues to be intensified through continuous innovation in branch design," says Lee-Anne van Zyl, CEO of FNB Points of Presence.

Van Zyl says, today most FNB branches are markedly different compared to a few years ago. She says the evolution continues to yield meaningful benefits for customers.

"Currently, our customers spend less time queuing at our branches and many prefer using self-service channels to make deposits or to purchase select prepaid products. We have also seen an important shift in the way our branch personnel interact with customers, which includes helping individual and business customers adapt to using the digital channels, thus creating more time to help customers with more complex transactions," she adds.

In South Africa, banking branches remain an important channel for consumers and businesses to access banking services. In a society where financial inclusion remains a major challenge, it's very important to enable digital adoption through channels that people are accustomed to. Whether a customer is new to bank or they have been banking for a long time, digital remains a remarkably convenient platform.

The digital enablement of customers happens across different customer segments within FNB, namely: Easy, Gold, Premier, Private Clients, Wealth as well as Business accountholders. The success of digital migration and adoption has been seen across various client segments.

"The migration of customers to digital platforms is not only about cost effectiveness, it's also about efficiency for customers and giving them options to bank in a way that is most convenient. From an FNB point of view, this also increases the potential of being rewarded with eBucks from using the qualifying channels and product sets," says van Zyl.

FNB's parent company FirstRand awarded short-term insurance licence


19 March 2018: FNB's parent company FirstRand has been awarded a short-term insurance licence by the Financial Services Board (FSB), three years after acquiring its long-term insurance licence.

The licence will enable FNB to become a complete insurer, with the ability to underwrite short and long-term insurance to businesses and retail customers.

Jacques Celliers, FNB CEO says, "As a fully-fledged insurer, we are now well positioned to sustainably scale our insurance pillar through a philosophy of simplified complexity, great innovation and superior convenience. Central to the success of our insurance business will be our ability to significantly increase efficiency by leveraging the FNB banking infrastructure and channels."

FNB seeks to gain significant market share in the overall insurance industry through its innovative approach which translates into a massive competitive advantage.

Lee Bromfield, CEO of FNB Life says, "Our long-term strategy is to build the lowest cost insurance company in the market through our ability to interact with customers at a significantly lower cost than competitors and retain them through integration into the FNB ecosystem."

"Business insurance will play a pivotal role in our strategy. FNB Business has gained significant market share over the past few years on the back of relevant transactional and lending offerings and most importantly, strengthening customer relationships on the back of data driven insights. We want to complete the business offering with insurance and see this working well in existing interactions with our business customers," adds Bromfield.

Digital technology has become one of the central pillars of the insurance business, with the bank looking to take advantage of a number of innovations, namely:

  • One-click sales processes built through superior rating and pricing models taking advantage of existing FNB expertise and infrastructure as well as leading edge telematics solutions built through the App.
  • Robo-claims processes built with new-age Artificial Intelligence techniques to ensure the fastest and best claims pay-outs in market. Ability for customers to claim, track claims and service policies from any channel of choice including the App.
  • Self-learning ratings models which get more accurate while requiring less information from a customer continuously.

"With millions of active digital channel users, the bank aims to adopt an opti-banking channel strategy to service customers in the most optimal way, while actively learning and using the experience to develop a world class digital insurance experience," concludes Bromfield.

Big data and advanced analytics: how the banking sector is keeping up


By Dr Mark Nasila, FNB Head of Advanced Analytics: Consumer and Retail

13 March 2018: Big data and advanced analytics are at the center of how financial services institutions are equipping themselves to deliver better value to their customers, while decreasing operating costs and mitigating credit, market, and operational risks.

Big data is a term used to describe the exponential growth and availability of data, which may be structured, semi-structured or unstructured. These extremely large data sets may be analysed computationally to reveal patterns, trends, and any possible associations. Data science is an interdisciplinary field looking at processes and systems to extract knowledge or insights from data in various forms while advanced analytics is a set of analytical techniques used to predict future outcomes of several events.

Making use of data and analytical techniques has proven to help organizations meet regulatory and reporting requirements, compete with technology disruptors, and reduce operating costs. A large number of financial institutions have embarked on a journey of combining and making use of the available internal datasets, such as debit and credit transactions, transfers, channel and communication preferences, rewards utilization and loyalty behavior, etc. These institutions including banks have traditionally collected vast amounts of data from traditional sources such as transaction details and spending behaviors.

There has also been emergence of non-traditional datasets that can also be mined to extract meaningful insights. These include datasets from newer or external sources; website logs, Internet clickstreams, social media activity and mobile-phone call details. They feed into various internal or external systems at a growing rate.

The growth is attributed to advances in social media, which has also led to the generation of perception data. These types of datasets can equip banks with insights to effectively understand customer needs in several ways. These include developing algorithms around product or service sentiment data (e.g. Facebook, Twitter feeds) that can enable banks understand how customers perceive their products or services, analyzing response trends on the launch of new products as well as analyzing unstructured voice recordings from call centers to be able to recommend solutions to reduce customer churn, up-sell and cross-sell products and proactively detect fraud.

For FNB, the mining of big data provides a golden opportunity to continue being much better in several banking aspects. By using data science and advanced analytics techniques to collect and analyze big data, we can reinvent nearly every aspect of banking. These techniques enable targeted marketing, optimised transaction processing, personalized wealth management advice, prevention of internal and external fraud, assessing regulatory risks and much more - the opportunities are endless. A large proportion of the current big data projects in banking revolve around customers - driving sales, strategising retention, improving service and identifying needs: so the right offers can be served up at the right time to the right customer.

Some of our sales are already taking place based on automated, pre-approved offers on digital platforms based on the predicted propensity of the customer to take the products up. We are now able to model our customer's financial performance on multiple data sources and scenarios. Big data and analytical techniques play a salient role in strengthening risk management in areas such as card fraud detection, financial crime compliance, credit scoring, stress-testing and cyber analytics.

The main objective of data science and advanced analytics is to obtain insights and knowledge from data to drive strategic decision making. These techniques require a methodical exploration of data using data mining techniques, enhanced by proven scientific techniques. Data science and advanced analytics combine elements, techniques and theories from many fields, including mathematics, machine learning, computer programming, statistics, data engineering, pattern recognition and learning, visualization, actuarial science, uncertainty modeling, data warehousing and high-performance computing.

Experts in these fields are responsible for examining the data, identifying key trends, and writing the complex algorithms that will see the raw data transformed into a piece of analysis or insight that the Bank can use to gain a competitive advantage. The advanced data science techniques are selectively and smartly applied to enable the bank to understand the correlation between the events being predicted and the data dependent factors driving the outcome of these events.

Historically, banks have been efficient at running analytics at a product level, such as on Cheque accounts, Overdrafts or Credit cards. With big data and analytical techniques, we are now able to get a holistic view of a customer across their portfolio. This is by consolidating different sources of data to obtain a single view of the customer, hence we can explore across all inter-connected customer relationships the customer has with the bank.

We can also understand customer relationships by exploring their ever-changing transactional and interactional behaviors. This will also enable us to effectively target customers and improve engagement as we interact and communicate effectively across new digital marketing platforms such as Web sites, e-mail, mobile apps and social networks. This is because advanced segmentation strategies on big data are enabling the bank to enhance its marketing strategies by identifying customer needs based on their transactional behaviors. For example, when a customer begins a relationship with us, we are well equipped to offer the right products at the right time, and even quickly resolve their complaints or queries by analyzing how they interact with various platforms.

Moreover, we are now in a position to determine an estimated cost for how each customer interacts with each channel (e.g., call center, branch banking, etc.) and come up with a recommendation of how we can move customers to low-cost channels. In the debt collections and recoveries space, analytics plays a salient role in enabling us create an accurate picture of a customer's willingness and ability to pay and, hence estimate the amount likely to be recovered. This provides a criterion for prioritizing collections activities to maximize recoveries and reduce collections costs.

In the olden days, financial institutions were impeded by the difference in the time data is collected, the time data is analysed and the time decisions are made based on the analytics insights. This challenge is mainly attributed to legacy platforms and databases sitting in silos that were not specifically designed for the present data science needs. FNB has made a monumental stride in acquiring systems such as Netezza to provide capability for real-time or almost real-time analytics.

These capabilities provide us with new ways to innovatively solve business problems such as; proactively fight Financial Fraud: we can now timely analyze transactions, account balances, spending patterns, credit history, employment details, location etc. to determine whether transactions are legitimate. If unusual activity is detected, we can immediately action preventative measures, as well as alert the owner. We are now able to improve on our risk rating models i.e. a continuous feed of internal and external data implies credit, regulatory and market risk ratings can be updated in real time. This enables us to quantify these risks more accurately.

Moreover, we as a bank are now able to have a more accurate picture of a customer's assets, business operations and transaction history at a specific time of their lifecycle. Furthermore, we can now determine the value of our customers more accurately: This entails using this continuous feeds of data to determine the future behavior of customers, and tailor policies to account for a customer's changing financial situation at a particular time of their lifecycle.

For us to gain and sustain a competitive edge in the big data and advanced data science space, we need to continue to actively identify components of the big data trends that are a right fit for advancing our businesses strategy. Not all data, but relevant data coupled with innovative advanced data science techniques will prove transformational in maintaining us as a powerhouse in the financial industry.

How will the estate duty increase impact you?


05 March 2018 - The 2018/2019 Budget Speech alluded to an increase in estate duty tax of 25%, from 1 March 2018 for estates with a net value of more than R30 million.

Johan Strydom, Head of Growth: FNB Fiduciary says that, "There is still a lot of confusion around the concept of estate duty. Many consumers struggle to understand what it means, how it impacts them, their heirs and next of kin. Understanding and calculating estate duty accurately is quite a complex process and sometimes can be quite confusing."

He highlights the following important principles:

What is Estate duty?

  • Estate duty is s a type of tax; which is payable by the estates of deceased people; who have a net estate valued at more than R 3.5 million. This is payable within 1 year after the date of death and the executor of the estate is liable for the payment of the assessed amount to the South African Revenue Service.

Gross value of an estate:

  • The gross value of a deceased person's estate includes all assets owned by the deceased locally and abroad; and the proceeds of all life assurance policies payable on the life of the deceased.

Deductions and rebates:

  • Certain deductions and rebates are allowed before one gets to a dutiable estate value. These include claims against the estate, administration expenses and liabilities of the deceased. For example, outstanding credit facilities, funeral costs, the executor's fees and the deceased's final income tax liability are deductible from the gross estate value. Any bequest to a surviving spouse is also allowed as a deduction. In addition, all estates also get a rebate of R 3.5 million rand.
  • Estate duty is then levied on the dutiable estate at a rate of 20% up to R 30 million and 25% on the amount above 30%.

Most individuals and families have unique circumstances; the following is just some practical scenarios to consider that will help you plan for the future:

  • Some consumers have the view that estate duty is not something to be concerned about considering that estate duty will not affect them or their spouses since there is no estate duty payable at the death of the first dying spouse when leaving one's entire estate to a surviving spouse. However there is no escaping and with the transfer of assets from the surviving spouse to the next generation, that is where estate duty will then be unavoidable and payable on the estate of both spouses.
  • Estates with high value assets like business interests and farms will logically mean higher estate duty. Consider the impact of this expense on the liquidity requirements in your estate. Many estates are solvent but do not have enough cash available for the executor to settle estate related expenses l ike estate duty.

    Donations tax are levied at 20% on donations made above R 100 000 per person per year. Many people think that by donating assets to their children or beneficiaries they can circumvent estate duty. The donations tax rate has also been increased to 25% for donations above R 30 million.

"An annual review of one's estate plan, Will and liquidity requirements is required to ensure the effective and smooth transfer of assets from one generation to the next." concludes Strydom.

What to consider when insuring an exotic car


21 February 2018: If you happen to get a financial windfall, like winning the lottery, inheritance or are a highnet- worth individual, there are important insurance factors you should consider before starting a car collection or spoiling yourself with an exceptionally high valued vehicle.

Theunis Fourie, Head of FNB Insurance Brokers, says high valued and performance vehicles can range from antiques and classics to full spec SUV's and luxury sports cars which can cost up to R7 million and more.

"When covering assets of this nature it is advisable to consult a knowledgeable and experienced broker to avoid making costly mistakes, due to the complexity of insuring highly valuable and unusual assets," says Fourie.

He shares five factors to consider when insuring a high valued vehicle:

  • Re-insurance - ensure that your broker has the appropriate relationships with blue chip insurers to cover the expensive car.

    Some insurers have re-insurance limits which may prevent a broker from placing the vehicle on cover directly. As a result, the broker may need to source alternative products and quotes to accommodate your request.
  • Underwriting limits - insurers may consider the value and performance of the vehicle and limit who is insured to drive, mileage per annum, security devices used and the location where it is parked at night - amongst other limits, depending on what the car is used for.
  • Premium pricing - insurers will often rate you according to value of the vehicle, type of vehicle, c ost of re-insurance, availability of parts if the vehicle is an import, as well as your risk profile.
  • Excesses - a 5% excess when claiming could cost a fortune if you write off a car worth R5 million.

    Consider flat excesses so that you are aware of what you are in for in the event of a claim. In some cases, selecting a voluntary excess could reduce your premium considerably. However, insurers generally provide their lowest rate to clients with a low loss ratio and a voluntary excess may not provide the reduction you hoped for.
  • Risk management - be a risk adverse owner and follow all restrictions laid out by your broker. Also be a careful and defensive driver, taking into account that almost 70% of cars on the road are uninsured.

"Depending on the type of car and what you intend to use it for, your broker will be best suited to advise you on all the factors to consider, fine print, and other restrictions you may need to be aware of. For example, measures to follow when taking the car out of the country, attending track days or car shows," concludes Fourie.

Agriculture proves to be a heavy lifter


Comment by Paul Makube, Senior Agricultural Economist at FNB Business

07 March 2018 - On the back of a devastating drought in South Africa's biggest agriculture region, the Western Cape (WC), the sector has managed to pull off an impressive 37.5% q/q and contributed 0.8 percentage points to GDP growth.

The WC is however still gripped by drought conditions and accounts for 23% of the total South African agriculture GDP. The agriculture, forestry and fishing GDP for 2017 also grew by 17.7% year on year and contributed 0.4 of a percentage point to the overall South African GDP.

The robust agriculture output was boosted by favourable production conditions for the second consecutive season following the worst drought in 100 years two ago. The first production estimate for the 2017/18 season surprised on the upside for grains with the major staple maize coming in at 12.22 million tons though still down from the record 17 million tons last year.

We expect the industry to continue on its stellar performance as the summer crop season tails off.

FNB Business Innovation Awards 2018 judges announced


20 February 2018: FNB Business has announced the five judges who will preside over the selection process to determine the 2018 winner of FNB Business INNOVATION Awards (BIA) supported by Endeavor South Africa (EndeavorSA).

Candidates are being reviewed based on the stringent Endeavor selection criteria. Those who make it through the first Endeavor Local Selection Panel will be shortlisted as finalists. Finalists will then be interviewed over two judging days to evaluate them based on the FNB BIA criteria. The overall winner will be announced at a gala dinner in June this year.

Mike Vacy Lyle, CEO of FNB Business says, "We are encouraged to see the Awards continuing to attract the highest caliber of judges who are respected entrepreneurs and business leaders in their own right. Over the past three years, the FNB Business INNOVATION Awards have brought to the fore some of the country's emerging entrepreneurs and gave them a platform to build networks that will help with scaling their businesses."

The judges for the 2018 leg of the FNB BIA are as follows:

Phuti Mahanyele - Executive Chairperson of Sigma Capital an investment holding company

  • She was awarded the Forbes Woman Africa Business Woman of the Year Award as well as the Platinum Award by Motlekar Holdings BBQ Awards in 2014. She is the former CEO of the Shanduka Group, a principal investment firm specialising in investing in resources/resource investments.

Andile Khumalo - MD of POWER 98.7, COO of MSG Afrika and presenter of POWER Business on Power FM

  • A seasoned entrepreneur, deal maker and operator of growth businesses, Andile is the founder of I AM AN ENTREPRENEUR, an online and offline platform that supports and mentors younger entrepreneurs.

Bruce Morgan - CEO: GreatSoft group of companies comprising: GreatSoft CRM, GreatSoft CoSec, and GreatSoft Payroll

  • Over the past 10 years Bruce's companies have built a highly successful cloud based suite of products installed in close to 1000 companies. This success has led him to enthusiastically study the world of Blockchain. He is at present evaluating various business opportunities to take advantage of this exciting technology, and to implement this within his client base.

Catherine Townshend - Managing Director of Endeavor South Africa

  • As MD of Endeavor, Catherine supports the South African chapter of a high-impact entrepreneurial movement which applies the science of scale, and harnesses the power of a global community. Since joining Endeavor in 2012, Catherine has acquired deep knowledge and expertise across industry verticals for scale-ups around the world.

Lukesh Govindasamy - FNB Business Bank Provincial Head for Gauteng North

  • Lukesh had a strong entrepreneurial spirit and a passion for property development before complementing his Bachelor of Commerce Degree with an MBA (Wits; UWO, Canada) and entering the world of banking in 2004.

"We believe that the contribution of each judge will add significant value to all the participants. As FNB Business, we have a major focus towards empowering women and black owned businesses, and we hope to see better representation in this year's INNOVATION Awards," said Vacy-Lyle.

For more information visit: https://www.fnbbusinessinnovationawards.co.za/

Launch a business on a shoe-string budget and your smartphone


27 February 2018 - Smartphones have become so common in many parts of the world that we forget their significance at times. It is perhaps one of the greatest gifts to an entrepreneur looking to launch a business on little to no seed capital. If its functionalities are maximised, it's not far-fetched that one could launch and run a business from it successfully.

"Now more than any other time in history, starting and running a business can be done with little to no seed funding. The digital age offers entrepreneurs the ability to launch and grow a business using a set of online platforms and tools that can be installed or accessed on your smartphone," says Jesse Weinberg, Head of the SME segment at FNB Business.

Weinberg gives us an idea of how one could go about using a smartphone to launch a start-up at little to no cost.

Business registration & certification - Entrepreneurs can register their businesses and apply for a business account on a bank's website. CIPC registration through a bank was launched by FNB in partnership with the DTI in 2012; it is now available through all major banks in South Africa at a minimal fee. This includes the creation of a company with the registrar of companies (CIPC) on your behalf.

Reserve a web domain and email address - One of the best ways to professionalise your business image from the start is to have a business website and business email address - it says that you are serious. Registering a web domain address is relatively cheap and easy through companies such as www.godaddy.com and www.Afrihost.co.za which also offer you the ability to setup an email account and even a website.

Cloud and App-based accounting software - With so many companies offering various software tools and solutions, it has never been easier to get yourself up and running so you can start invoicing and balancing your books right away. Many banks now even offer business customers accounting software as part of their value-added offering. FNB offers their Instant Accounting Solutions suite for free which enables business customers to import and reconcile their bank account transactions immediately, invoice clients and even issue payslips to employees.

Social Media - Never before has it been easier for a small business owner to compete with larger businesses in the digital marketing arena by creating and managing multiple digital campaigns right from their own smartphone. With mature social media platforms such as Facebook, Twitter and Instagram, there are a whole bouquet of tools available to create, track and monitor campaigns with incredible precision. What's more is most of these platforms now even enable you to sell your products and services directly on their platforms.

Cloud services - By definition, this is any software service that is available to its users via the internet or "the cloud" on demand. Cloud services cut costs because the business doesn't need to own its own physical servers, meaning no direct technology costs of owning servers or physical storage. For example an entrepreneur can access web-based productivity software such as Microsoft Office 365 or Google Docs, or they can file and store all their documents online in the cloud and have access to them from anywhere with the likes of Dropbox, iCloud and OneDrive.

Website builders - The idea that a website has to cost a fortune isn't true; one can launch their own website online using an online website builder platform offered by many providers. Most platforms offer pre-created themes and templates either for free or at a minimal cost. You can personalise a theme to suit your business aesthetics, image and needs, when you are happy with it, you can simply launch it under your web domain URL. Most of these platforms offer plug-ins that are built for ecommerce, meaning you can link it to your account and sell online. Examples include www.Shopify.com and www.Wix.com .

"These platforms and tools, when used effectively, can empower you to take your product or service from an idea, to a huge online audience. The best part of it all is that these are easy platforms to master right from your smartphone. An entrepreneur can also use the analytics tools built into most of these platforms to get deep insights into who their customers are, allowing the entrepreneur an opportunity to improve and grow the quality of their offering. It's a new digital business world out there, and by embracing the power of your smartphone, you can take full advantage of it." Weinberg.

Multi-unit franchising growing in South Africa


26 February 2018: Multi-unit franchising is becoming a growing trend globally and in South Africa, meaning a single franchisee owns more than one outlet in different geographies. This ownership model challenges the traditional paradigm of a single-unit franchisee that we are most accustomed to.

Riaan Fouche, Chief Operating Officer (COO) Franchise at FNB Business says, "Multi-unit franchisees are a major trend in South Africa and more franchisors are giving first preferences to existing franchisees due to proven success and understanding of the franchisors brand. This enables the franchisor to grow their footprint in partnership with a franchisee while mitigating the level of risk associated with opening up a new outlet."

Fouche shares five advantages and disadvantages of a multi-unit franchisee:

Advantages

  1. Diversify income - Having more than one source of revenue as a business improves cash flow and the lifeblood of a business.
  2. Knowing the system -There would be no need to start from the beginning to learn the franchisor's systems because the franchisee already knows the operations.
  3. Centralise your support office - Owning multi-unit franchisees allows the business owner to cut costs and centralise offices into one.
  4. Bulk discounts - Buying stock in large quantities saves time and money, this means that the franchisee would be decreasing the cost per unit of each of the items they order for each of the outlets.
  5. Banks looks favourably at multi store operators - Established franchisees have experience and track record which puts them in a favourable position when going to a bank for a loan. They have accumulated assets and a proven track record.

Disadvantages

  1. Brand limitations - Some franchisors will not allow a franchisee to own other brands especially if it is a direct competitor.
  2. Complexity in running multiple operations - Owning more than one franchisee requires solid skills and tool sets.
  3. Over extension - Managing more than one business is very demanding and it could lead to burning out.
  4. Ripple effect - One or two non-performing outlets could have a negative effect on the group of outlets.
  5. More staff - Leading and managing a lot of people is challenging.

"In this tough economy, franchisees are advised to consider multi-unit franchisee as a viable alternative in diversifying profit margins. However, they need to weigh the pros and cons of taking more outlets," concludes Fouche.

For more information, please visit: https://www.fnb.co.za/business-banking/franchises/index.html

The digital revolution and the trending themes in 2018


15 February 2018 - The digital revolution is beginning to make real headway in how work is done in corporate South Africa. The current trends suggest that 2018 will start to see policy catch up and in essence, countries such as South Africa will start to come to terms with the rise of the 4th industrial revolution.

"2018 rotates around strategic action - being aware of your surroundings yet narrowly focused on doing what you need to do. I also expect 'digital' to be the new 'analytics' - the capability of businesses to harness data in a customer-centric way will be the key to thriving this year," says Dr. Yudhvir Seetharam, Head of Analytics, Insight and Research at FNB Business.

Dr Seetharam shares key themes that will drive analytics in 2018:

Regulating the rise of alternative currencies - With the rise of cryptocurrencies, many countries have had to start working on regulatory frameworks to govern mainstream adoption.

Cashless environment -Consumers are moving towards a cashless environment. We are most inclined to pay for what we buy digitally as opposed to cash these days. We've seen an increase in this trend as these payment solutions are often coupled with banking apps. It's often easier and more convenient to pay using your smart phone or via a card swipe that does not require pin authentication.

Improved competition - Competition is also heating up, with fees and value propositions being at the forefront of the customer's mind. Businesses and customers want value for their money and ideally this comes in the form of lower fees or an increased perception of value. With many new start-ups in the banking space, we are likely to see more competition on rates and fees - all being driven by a digitally offered value proposition.

The 4th Industrial revolution - Lastly, businesses of all sizes are moving towards the "4th industrial revolution" - where automation in the form of robotics underpins higher efficiency and lower costs. Software vendors offer many of these solutions which can assist your business in producing more for less, resulting in increased efficiency.

"At the end of it all, the use of data and analytics is becoming more prevalent in running a business than we previously thought possible. Data-driven decision making is required for companies to succeed in a time where volatility and uncertainty run high. Going digital is not just about keeping up with the Joneses, but about keeping up with the times," concludes Dr Seetharam.

Consumers opting to rent despite affording to buy


09 April 2018: FNB's data has revealed that 69% of its Gold accountholders are renting instead of buying property and 44% of Premier customers demonstrate a similar trend. This is despite the cost of rental being not much lower than the average bond.

FNB Gold account holders are customers who earn between R7, 000 and R25, 000, while Premier customers fall in the R300, 000 to R750, 000 income bracket.

Kathu Ramoliko, Head of FNB Gold Sub-Segment, says "A noteworthy inference from this finding is that while some consumers can possibly afford to buy property, they settle for renting. Reasons such as impaired credit records could be behind this trend, however there needs to be a change in mindset because there are long-term financial benefits to owning a property."

Buying a property is a form of investment because its value appreciates over time and the owner gains equity when payments are made towards the house. Owning a property, as opposed to renting, gives you the option to modify it and possibly increase its value through improvements; in essence every cent you spend on the house goes back to your pocket in one way or another.

Lynette Kloppers, CEO of FNB Premier, says "The income disparities between the Gold and Premier segments are quite vast but the common denominator is the reluctance to step into the property market, which may be due to real or perceived barriers. We believe there is room for people to buy into property either for ownership or as an investment especially for consumers in the higher earning spectrum in the Premier segment."

Buying property is perceived as expensive but it's possible to start small and build up from there. Another way of getting into the property market is through buying jointly with someone else to share the cost as it does not always have to be an individual effort. Buying a property is a huge commitment and buying it with someone else should not be taken lightly.

If for now the only option available is renting, it's better to downscale on the type of rental property and save money that can be allocated towards a deposit or transfer costs when eventually buying property.

It's essential for consumers to take the next step to securing their future, and property ownership plays a major role in that regard. FNB customers could start their property journey by conducting a pre-approval via nav»Home on the FNB Banking App or www.fnbpropertyleader.co.za .

The pre-approval letter indicates the amount a customer qualifies for, it's valid for 90 days and can be presented when applying for finance. Consumers can search nearby properties to find their perfect home and receive a FREE instant home value estimate. Customers also get a guaranteed 40% back in eBucks on their first home loan repayment when applying on nav» Home. And they can move up an eBucks rewards level, qualifying for further discounts through the rewards programme.

"Buying property is no longer as complicated as it used to be, especially if you apply with an institution that has digitised the process. Our Gold and entry-level Premier customers who qualify to buy property also stand a chance to get 105% financing, which FNB predominantly offers for in the affordable housing market," concludes Ramoliko.

Diminishing Musharaka, an alternative way to buy property


20 March 2018 - Islamic banking offers an alternative to a business or individual looking to buy property, and it is open to anyone to make use of.

"Property finance, in the traditional sense, is essentially the granting of a loan to a client for the purchase of a property. This loan needs to be paid back with interest over the term of the loan arrangement. The difference with Islamic property finance is that it is based on a concept called Diminishing Musharaka," says Amman Muhammad, CEO of FNB Islamic Banking.

Diminishing Musharaka means that the bank and the client enter into a co-ownership agreement with respect to an identified property. Each party's proportionate share in the property is based on their respective financial contribution to the co-ownership arrangement. The client then commits to buy the bank's share at an agreed-upon mark-up in tranches, normally on an annual basis, resulting in the bank's share being diminished completely over the term of the finance arrangement. At the end of the term, the client becomes the sole owner of the property.

Muhammad takes us through the 4core reasons that are of benefit when comparing to a conventional property loan facility:

Certainty - while the instalment in a conventional property loan fluctuates based on the movement of the prime lending rate, the instalment in an Islamic property finance arrangement is fixed for a period of twelve months at a time. The instalment is only subject to review on an annual basis.

Flexibility - the client may, on an annual basis, choose to purchase an increased share in the property by paying in a lump-sum amount, in addition to the proportion that he wishes to purchase via instalments in the next year. The client may also choose to purchase the property in its entirety at any point during the agreement. Furthermore, the client may select from flexible financing terms of 5 to 10 years, as his circumstances might require.

Innovative - clients seeking some cash-flow relief or additional working capital can utilise the Islamic commercial property finance product to unlock some cash or liquidity from freehold or paid-up property. This would mean that the bank and the client enter into a co-ownership agreement with respect to the identified commercial property, whereby the bank would acquire a share in the client's property for an agreed-upon price.

Shari'ah compliance - most importantly, this is a credible Shari'ah compliant alternative to conventional commercial property finance.

"This is an innovative product that provides clients with an alternative property financing option that is both flexible and Shari'ah compliant. Its unique features make it a viable option for any client, Muslim or otherwise, wishing to expand his property portfolio, or even revamp an existing property," concludes Muhammad.

How the Eastern and Western Cape Water levels will impact Easter tourism numbers


15 March 2018 - With the Easter holidays approaching, there will be concerns around increased water consumption in both the Eastern Cape (EC) and Western Cape (WC), these are coastal cities that are popular holiday destinations for tourists.

Due to the ongoing drought, water levels are already stretched in both provinces, however, Charnel Kara, Tourism expert at FNB Business says these coastal towns should be more than capable of meeting demand from increased tourism activity.

"The South African Coastal Line is a popular destination for both South Africans and international tourists. In as much as the water crisis has created concern resulting in some tourism bookings, both provinces continue to manage the situation quite well, with many accommodation establishments reducing and implementing restrictions on water on their own," says Kara.

The WC is one of the most popular destinations in South Africa, whereby the first quarter of 2017 which included the Easter holiday season, foreign direct was at R5, 7 billion. This represents an increase of 1.2% in expenditure when compared with the first quarter of 2016, making the WC an important tourism income contributor within South Africa.

"While foreign tourists only make up one percent of the WC total population, and the percentile may seem low, inferring that the impact they will have on water in the province is miniature, and even negligible, it is important to remember that these tourists carry significant weight in terms of their spend and contribution to the provinces economy.

A secondary consideration is that strict water restrictions are in place for the City of Cape Town at the moment and not the whole province. The EC is no different, the inner cities are the hardest hit and not so much the province as a whole," explains Kara.

Tourism is a crucial sector; both the EC and WC generate sizeable incomes through tourism. In the WC for instance, it supports over 300,000 jobs across the province and contributed nearly R40 billion to its economy. Thus, it would be prudent to encourage tourists to continue to visit the province, but perhaps shorten their stay in the city and rather spend more time in the regions that do not have water restrictions currently such as the Garden Route in the WC or the Wild Coast in the EC.

"Climate change is a real threat facing not only the Western Cape but the entire world as we know it; it poses a real challenge to many tourism based economies. However, this should not impede the promotion of destinations such as the WC. So, even with the looming day zero, it remains important to continue promoting the WC as an attractive tourism destination," concludes Kara.

Day Zero only paints half the picture


06 February 2018 - South Africa is in the grips of a water shortage that is reaching a critical stage, though much is said about the looming Day Zero in the Western Cape, the depleting water levels remain a concern in other parts of the country

Day Zero in the Western Cape is estimated to take effect this May, this will largely depend on demand versus usage and supply through the alternative sources like boreholes, and any considerations of desalination. However, there should also be concern about the critical water shortages in provinces such as the Eastern Cape and Northern Cape," says Dawie Maree, Head of Marketing and Information at FNB Agric Business.

The Eastern Cape and Northern Cape are facing the same shortage as the Western Cape. In fact, the Kouga Dam, which supplies water to Port Elizabeth and surrounding rural towns in the Eastern Cape, was sitting at 9.2% dam for the week ending 2nd February level before the recent rains, which will probably lift it in the short term to approximately 12% for the week ending 2nd February. The western parts of the Northern Cape are also experiencing a prolonged drought and livestock farmers in these areas are under immense pressure.

"The immediate agricultural impact will be on cash crops such as vegetables as well as livestock due to their high water needs, while perennial crops such as fruit with deeper root systems might hold on for a bit longer. We may also start to see output in terms of yields and fruit sizes decline. If the drought persists for another season some fruit trees might have to be uprooted with longer term implications for supplies as it takes them longer to replant and grow the trees to a point where they are sufficient for production," explains Maree.

The true impact of the drought will in essence depend on how the winter rain season plays out in the Western Cape and other parts of the country. However, given that the summer rain season started late, it is forecasted that the winter season might also be late. This suggests that we may see a more protruded length of the current drought.

"We need to face another reality in that even when the rains return, the crisis will not simply 'wash away'. Firstly, ground water levels need to rise before any run-off to replenish the dams. The best case scenario would be a large amount of rain in a short space of time, in which case the process speeds up," says Maree.

On the upside, South Africa has gone through a similar situation in the inland when Vaal Dam water levels fell critically low. When the rains returned, the Vaal Dam levels went from empty to full within a space of three weeks.

"The impact of Day Zero in Cape Town on agriculture is minimal in the short term as restrictions have already been in place to ensure that the industry does not make excessive use of water, which in essence mean that farmers are already past their Day Zero. Should the drought persist, we may start to see a far more concerning impact on the industry, for now, we wait for the rains to return," concludes Maree.

Common debit card misconceptions demystified


04 April 2018: Despite debit cards being the most common form of bank card used by consumers, there are still a number of misconceptions about the card that exist.

Ryan Prozesky, FNB Consumer Core Banking CEO, says taking time to get familiar with the overall use and added benefits of a debit card can help consumers realise that it is more than just a tool for withdrawing cash and swiping for purchases.

He demystifies some of the common misconceptions about debit cards:

  • A debit card won't impact my credit profile - this is generally true. However, if you are using an overdraft facility which is linked to your transactional card it can either help improve or lower your overall credit score. If you do have an overdraft facility, lenders are able to track how you honour your overdraft repayments when deciding whether or not to grant you a loan. Make sure you deposit sufficient funds into your account on a monthly basis to settle your overdraft.
  • You don't get bank rewards from debit cards - although it is advisable for you to swipe your credit card to get maximum rewards, you can still qualify to get rewards when using your debit card. For example, FNB customers can join the eBucks Rewards Programme for free and get rewarded when using their qualifying debit cards for certain transactions, such as swiping or shopping internationally.
  • Debit cards can't be used for online shopping - over the past few years a number of online merchants started accepting debit cards as a form of payment, enabling consumers to conveniently shop online, while still enjoying the same convenience and security measures offered when using a credit card online.

    Furthermore, VISA or Mastercard credit and debit cards are accepted by all online retailers who display the logos on their websites.
  • Using a debit card is expensive - always opt for swiping or using your card for purchases as this service is offered for free by banks, instead of withdrawing cash which can be expensive. If you really need cash rather use your debit card to withdraw at selected retailer till points, as this is more cost effective.

Lastly, some consumers who have unfortunately been victims of crime still hold the view that debit cards are susceptible to fraud.

"Debit cards use the latest security measures and technology in the market. Most of the cards are chip and pin enabled, offering an added layer of security to consumers. However, the onus remains on consumers to always keep their pins and cards safe by employing effective security measures provided by their banks whenever they swipe or use their cards online," concludes Prozesky.

Krugerrands - the gift that keeps on giving


04 April 2018: Finding that perfect gift for your loved ones can be a challenge, however investing in a worthwhile gift like a Krugerrand could help you reap the benefits in the long term.

Krugerrands are the easiest way to own gold, which is the most widely known and actively traded gold bullion in the world.

"Gold has generally held its status as an investment haven in times of global uncertainty, disparate economic growth across countries and particularly when geopolitics takes centre stage as they have done in recent years. For some investors gold is a sentimental purchase, while for those who are generally sceptical of financial markets, Krugerrands provide a sense of comfort about the safety of their investment," says Aneesa Razack, CEO of FNB Share Investing.

Krugerrands are the ideal gift in more than one sense:

  • Krugerrands are linked to the international value of gold, which means that the investment is protected from local currency volatility and devaluation and therefore a true global investment you can rely on.
  • Gold is considered a safe haven because of its properties as both a hedge against inflation, and its pricing in dollars - the reserve currency globally.
  • Krugerrands have proven to be a valuable investment choice as the value of 1 ounce of a Krugerrand has increased by more than 870% between January 2000 and January 2018 - outperforming all other asset classes, while the price of gold has increased by roughly 370% over the same period.
  • Krugerrands are also VAT zero rated and attract no trading fees, ultimately lowering transaction costs. There are, however, custody fees of 0.86% per year based on the value of your investment holding in Krugerrands and a monthly account fee, just like most banking products.

In February last year Rand Refinery Ltd recorded the highest output of Krugerrand coins in 23 years.

"The demand for gold has been increasing, with developing economies accounting for two thirds of the growth in demand, led by China and India. Gold mine supply is expected to peak in the near future. This may well lead to an increase in gold prices, a view that is supported by a few big global players like Goldman Sachs who recently revised their gold price forecasts upwards," explains Razack.

Customers can buy different size coins to suit even the youngest in the family from as little as 1/10th of an ounce at the prevailing price with the choice to take possession of the coin or FNB will store it safely at Rand Refinery.

FNB's digital platforms have made it easier for customers to track and buy Krugerrands and other investments. "Our investment in the digital platforms ensures that customers are well-equipped to manage their banking at any given point of time. Invest in that Krugerrand today. It will benefit you and your family in the future," concludes Razack.

How to buy Krugerrands:

  1. Log onto www.fnb.co.za
  2. Click on the share + Gold Tab
  3. Click on My Portfolio tab on the left hand side of the screen
  4. Click Krugerrands under Buy heading
  5. Select the account
  6. The system will provide you with estimated quote of the amount of coins you want to buy based on the funds in the account
  7. Click on Buy on the type of coins you want to buy
  8. Enter the amount of coins you want to buy

FNB enables consumers to pay, make purchases at SPAR stores using eWallet


29 March 2018: FNB has announced that consumers can now use eWallet to purchase goods and withdraw cash at participating owner-managed SPAR stores in South Africa.

Aptly called eWallet@till, the cardless functionality uses a cellphone to enable eWallet recipients to make over the counter purchases and withdrawals at over 1300 participating SPAR outlets.

Sandi Madikiza, FNB Head of Mass Market Segment: Consumer Core Banking: says, "The partnership complements our long-term digital strategy to expand access to financial services. Our customers are increasingly making cardless withdrawals at our ATMs and we see this becoming a common trend where mobile technology is preferred instead of the physical cards."

"The use of technology helps to reduce the cost of withdrawals while enabling customers to get access to their money whenever they need it. Over the past few months, we've been introducing the eWallet@till functionality through a phased approach and we have already seen increased usage among customers," he says.

FNB's user data of eWallet@till shows a sharp spike in usage across select provinces in December 2017, with 53% transactions taking place in Limpopo, followed by Gauteng at 32% and KwaZulu-Natal with 10% as well as the Eastern Cape with about 5% of transactions.

According to the findings of the FinScope South Africa survey, mobile money solutions continue to play a vital role in broadening financial inclusion. The survey shows that in 2017, 71% of senders are sending money once a month to people outside of the household. Furthermore, the study showed that consumers have a propensity to use both mobile and retailer to send and receive money.

Madikiza says in the long run, the use of mobile technology will most likely become the primary channel through which consumers manage their money.

"The persistent adoption of smart technology will remain the single biggest contributor to the adoption of solutions such as eWallet, among other financial services products. Already, we are seeing a growing number of customers who are using the FNB banking app to access eWallet, and we expect this trend to improve significantly overtime," he concludes.

Have a Personal Finance Day every month


26 March 2018 - Just as we all enjoy a day to ourselves; be it for shopping or a day at the spa - everyone should have a Personal Finance Day.

What is a personal finance day? "A Personal Finance day is a day set aside each month to sort out your personal finance needs. This will help you better manage your finances and help you ascertain your budgeting goals, expenses and savings for the month ahead. Eventually this practice will become a habit, which will make your life much easier," says Ester Ochse, FNB Financial Advisory Product Specialist.

She adds that, "This day should be circled in your calendar and should be adhered to diligently ensure that you better manage your finances for the month. It's not difficult; it just needs commitment and dedication to ensure that you meet your financial objectives and goals every month."

Ochse says that "It's never too late to get started with your finances. Decide on a date each month and stick to it. Sort, label and categorise your excel budget sheets according to your finances, personal or business expenses, savings and entertainment. Ensure that you keep your monthly bills, invoices and receipts in a personal finance box. Alternatively; you can access all your expenses and payments via your online statements."

Managing your finances can be tedious for some; but it also gives you the opportunity to tap into your creative side. Draw up a personal finance journal which will help make budgeting a fun and easy process. Use colour pens, markers, sticky notes, creative icons to make it even more fun.

"Managing your finances is the first step to financial wellness and success. It also helps determine whether you have enough money for your retirement; your child's school excursion or even that mid-term holiday break to Cape Town

We live in a changing economy where the cost of living continues to rise. The bottom line is that we need to manage our finances now. Being over budget or left with no money can put a huge strain on our pockets which could impact on our health," concludes Ochse.

FNB Connect slashes data bundle prices


20 March 2018 - FNB Connect has repriced its data bundles in an effort to provide cost-effective solutions to customers. As of 19 March 2018, FNB Connect subscribers will receive a savings of between 10% and 30% on a once off data bundle purchase for prepaid, postpaid top-up and flexi top-up packages.

"This is part of our long-term commitment to minimise the burden of high data costs for our customers. We believe that this timely cost-savings will help customers save while making sure every rand goes a long way," says Shadrack Palmer, Chief Commercial Officer at FNB Connect.

FNB Connect's latest announcement shows a concerted effort to offer value for money at an affordable cost. During the festive season, FNB Connect availed up to 3.3 billion Megabytes of data to give away to customers who took up qualifying banking products through FNB's digital platforms.

Since the festive season promotion, FNB Connect has seen a 65% increase in daily data usage with the overall data usage increasing by 76% in November to December 2017. "Data is increasingly becoming a necessity and a lifestyle enabler for many consumers," says Palmer.

"Over the years, we've seen ascendency in data usage and demand to challenge the dominance of voice packages. We firmly believe that this trend will continue as smartphone penetration continues to deepen in South Africa, and the integration of FNB Connect gives us the competitive edge to innovate on a greater scale through the use of vast big data capabilities from within FNB," he adds.

ONCE OFF DATA OLD PRICE NEW PRICE
50 MB R15 R13
100 MB R28 R25
300 MB R60 R60
500 MB R89 R75
1 GB R139 R99
2 GB R245 R179
5 GB R399 R385
10 GB R699 R625
20 GB R1099 R950

In the recent announcement of FNB's interim results, the bank revealed that FNB Connect had grown its subscribers to 600 000 by December 2017. This is a firm indication that Connect is increasingly becoming a telco provider of choice among FNB customers.

How to achieve a comfortable retirement


02 May 2018: Retirement planning is often not prioritised during our first few years of employment. However, what we fail to realise is that starting your retirement plans early will yield positive results over the long term.

"People tend to delay their retirement plans with the hope that they will catch up at a later stage in their life," says Preenay Sathu, Head of Financial Advisory at FNB.

"The reality is that it might be difficult to catch up once you commit yourself to other financial obligations such as buying a house or a car. It is advisable to start your retirement journey as soon as you get your first pay cheque so that it becomes a financial habit," adds Sathu.

He unpacks the habits of financially healthy retirees:

Start early: People who achieve a healthy retirement start their retirement journey as soon as they earn an income. The advantage is that you will get to benefit from compounding interests which will help strengthen your retirement savings.

Contribute monthly: Monthly contributions to your retirement is great, however one needs to ensure that contributions increase annually by at least above the inflation figure.

Monitor returns: it is advisable to review your retirement savings at least once a year to ensure that your savings grow. Changes in the economy can have an impact on your savings, therefore always monitor the performance of the funds you are invested in. This will help ensure that you achieve your long term financial goal.

Don't withdraw savings: avoid the temptation of withdrawing from your retirement savings for rainy days. Instead, create an emergency fund that will help you deal with unexpected expenses such as a car breaking down or medical expenses.

Consult professionals: it is advisable to consult a certified financial planner who will guide you to structure your retirement in accordance with your lifestyle and needs. Furthermore, financial planners will give you guidance in terms of how much you need to contribute monthly in order to achieve a healthy retirement.

"The road to achieving a healthy retirement will require a great deal of compromise and practicing good financial habits. Retirement planning should be on our priority list when planning our finances," concludes Sathu.

Consider your digital life when doing financial planning for your death


25 April 2018 - While the vast majority of people are aware of the importance of making sure that their physical assets and personal wealth are passed on to those left behind when they pass away, it's becoming increasingly important to ensure that the growing number of digital assets are also specifically included in our estate planning.

That's according to Johan Strydom of FNB Fiduciary Services who explains that the term 'digital assets' is a very broad one that can cover everything from knowledge recorded digitally in eBooks, documents websites and social media, to software, apps and code we may have developed, important digital data, patents or trade secrets, digital artwork or recordings, and of course cryptocurrency investments.

"There is a great deal that people own today that cannot be classified as a physical asset that we can hold or touch, but which still has immense financial value," Strydom explains, "but because of the digital format of these assets, there is a very real risk that they may be accidentally overlooked when we are doing our estate planning or drawing up a will."

And Strydom points out that the importance of considering such digital assets in estate planning has increased when one considers that the value of these assets often also goes far beyond the financial benefit they may offer the loved ones we leave behind.

"While assets like cryptocurrency, digital contracts, art and music productions, code and patents can undoubtedly have huge financial value, for most people the importance of what they have stored digitally goes far beyond monetary consideration," he explains, "but given that few people could ever put a price on things like family photos and videos the importance of considering how best to securely pass all our digital assets to our beneficiaries can't be overstated."

Strydom's advice makes good sense, when you consider that even if many people don't own actual digital assets with a financial value, the majority of us live significant digital lives that include social media accounts, online banking and shopping profiles, email services, and more. Most of these are password protected. which makes accessing or closing them near impossible for those left behind in the event of our death.

"The issue is not just an inability by our heirs to access the many digital accounts that most of us have, it's also not knowing what we actually want them to do with these accounts once we're gone," Strydom says, "which makes it absolutely vital for everyone to include explicit instructions in their will regarding their online presence, including the usernames and passwords required to deal with these digital accounts after their passing."

Of course, when it comes to digital assets with financial value, the process of passing these on to your loved ones becomes significantly more complicated due to obvious security concerns.

"While it's easy enough to stipulate in your will who gets which of your digital assets after you die, the security precautions in place to protect these assets have the potential to make it difficult, if not impossible, for your beneficiaries to access what becomes rightfully theirs," Strydom says, "which is why the effective management and bequeathing of these digital assets demands very careful thought and planning."

Strydom points out that unlike physical bank accounts and traditional investments, which are frozen after the owner's death until dealt with by an executor, digital assets and investments remain active and can be accessed by anyone who has the necessary login details. What's more, many international digital service providers like iCloud, Yahoo, and iStore don't make allowance for transferability of digital assets to beneficiaries, which further complicates matters. And under South African law, there is still no clearly defined process for dealing with digital assets. All of which means that it's likely any cryptocurrency or other digital assets you own will need to form part of your overall estate and be dealt with by your nominated executor, who will need to be able to access those digital assets in order to include them in the estate winding up procedures.

"It is obviously not advisable to include login details for any accounts that hold financial assets in your will as this could be accessed by an unauthorised individual, even while you are still alive," he explains, "so the best approach is still to partner with a trusted estate planner or other fiduciary expert and enable them to make sure your loved ones benefit from these assets being included as part of the overall estate they inherit when you die."

Four mistakes graduates should avoid when taking out a loan


23 April 2018: Many graduates who have a good credit profile often get carried away by the excitement of qualifying for a loan, while overlooking the risks of misusing it, which could potentially lead to financial mishaps.

Lynette Kloppers, FNB Premier CEO, says taking the time to do your homework about different types of loans and how to use them effectively can help you avoid common mistakes that often leave consumers over-indebted:

  • Needlessly using credit - avoid mistakenly rushing into taking out a loan without first considering your needs and the most ideal way to finance them. Being able to differentiate between needs and wants will help you determine whether you need a loan or not.

    For example, if you are planning to buy a kitchen appliance that you will only use once or twice in a year, it would be more economical to save up for it rather than using credit and having to pay interest.
  • Using the wrong type of loan - there are many types of loans available in the market which can often be confusing for consumers who are not adequately informed. For example, if you run out of cash towards the end of the month, an overdraft facility can come in handy to ensure that important debit orders, such as a home loan or insurance premiums are honoured.

    Moreover, pre-funding your credit card with your salary and using it for all your daily purchases could be quite beneficial as it unlocks higher loyalty rewards and value added benefits. You also get access to a credit facility with up to 55 days interest free, to pay off, without incurring interest.

    Alternatively, taking out a long-term loan to supplement your monthly budget could potentially end up costing you more.
  • Not understanding the full cost of the loan - it is essential for consumers to be fully aware of the total cost of servicing the loan as well as the total interest they are required to pay back.

    Having this information upfront will help consumers to determine if they will be able to cope with the additional financial commitment, while still being able to put money away for emergencies or long-term needs on a monthly basis.
  • Not paying attention to the T's and C's - when entering into a loan agreement, it is essential to read and understand the terms and conditions to avoid costly surprises.

    For example, many graduates who are eager to buy the car of their dreams often agree to a residual or balloon payment without really understanding what it means, only to realise they need to pay a lump sum at the end of the finance term.

"Getting to grips with different types of loans and how to use them effectively in line with your personal financial plan at a very young age can help you build a solid financial future," concludes Kloppers.

Insure your household employees against a funeral


17 April 2018: Many people who employ household employees often do not take out funeral cover for their employees as they perceive it to be a costly and complicated administrative burden.

"However, due to product innovation and simplicity, funeral insurance has become affordable and easily accessible for small business owners or individuals who hire one or more permanent employees," says Nthabiseng Sethabela-Makoeng, Product Manager at FNB Life.

"Unlike traditional workplace benefits, which may require you to consult an expert, taking out funeral cover for your household employee is as simple as providing the insurer with the employee's personal details, choosing a suitable plan, cover amount and paying a monthly premium," says Sethabela-Makoeng.

Workplace benefits are traditionally known to create trust, commitment and influence a better working relationship between an employer and employee. They play an important role in making employees realise that the employer values them and has their best interest at heart.

Sethabela-Makoeng, says although taking out funeral cover for your household employee is not a legal requirement, it plays a critical role when considering the fact that funerals are expensive and employees may not have adequate cover, resulting in their families looking up to you for financial support, should a tragedy occur.

In most cases employers who do not have cover in place often have to tap into savings or use credit to contribute towards the funeral as an act of goodwill.

Any employee who is a South African citizen or permanent resident in possession of a green bar-coded RSA ID book or Smart ID Card can get funeral cover as a benefit from their employer.

For example, FNB Life offers Employer's Funeral Plan, ranging from R20 000 for a low premium of R49 and up to R60 000 for R125, with varying discounts the higher the number of employees covered.

Should the insured person pass away as a result of an accident, their loved ones will receive double the cover amount, e.g. an employee covered for R50 000 would receive R100 000. This benefit would be available immediately from the take up date and no waiting periods apply.

However, for natural death, normal funeral cover waiting periods will apply. Claims will not be paid out for natural death within three months and for suicide within 24 months.

"When taking out funeral cover for your household employees there is no need for any medical examination or underwriting. In the event of death of the insured person, the plan will pay out the specified cash benefit you selected," concludes Sethabela-Makoeng.

FNB uses helpful innovation to address customer needs


16 May 2018: FNB continues to be a leader in banking innovation through the launch of customer- centric digital solutions to address the ever-changing needs of consumers.

In a first for South Africa, consumers and businesses will now be able to open an account with FNB in minutes by simply taking a selfie through the FNB App.

Additional innovations include the launch of eBucks Travel on the FNB App which incorporates a fully-fledged travel offering, nav» Money, a digital money management solution that helps customers improve their financial health daily and Credit Card functionality that allows customers to courier and track card delivery on the FNB App.

FNB CEO, Jacques Celliers says, "Today marks a significant milestone in our 180-year history as we move beyond being a digital innovator to a broader contextual platform disruptor. It is through this contextually helpful platform that we can offer holistic financial solutions and become a trusted partner to the broader society. This will enable us to help create a better world for years to come."

"Our focus is on developing a strong customer-centric integrated financial services offering which is underpinned by digitisation. We have invested substantially to introduce helpful digital innovations that move beyond just banking, but enhance customers lives by helping consumers to help themselves," says Raj Makanjee, FNB Retail CEO.

"Furthermore, our main bank relationships with customers and ability to understand their needs and circumstances, enables us to deliver industry changing innovations that prioritise helpful banking and remove friction to create seamless, safe and market-leading banking solutions," says Makanjee.

Key to the ongoing development of helpful innovations has been the success of the bank's digital migration strategy with financial transactions and app usage up 10% and 66% respectively, for its half year results to December 2017.


New innovations:

Selfie onboarding

This allows frictionless onboarding through biometric facial verification on the FNB App for both consumers and business owners. Consumers can now switch with a selfie and open an account within minutes, with identity verification done through the Department of Home Affairs.

They will also be able to order and schedule courier delivery of new bank cards, switch debit orders, and setup digital banking immediately.


nav» Money

nav» Money is positioned to help customers bring their money to life. Every morning a customer can access an updated view of their financial health based on three simple views;

  • Track my spend - this feature lets consumers know whether they are spending more than they are earning and provides spends tips to manage their cash flow better.
  • My available funds - lets consumers know what's left to save and spend after all known upcoming payments. We take all your scheduled payments and debit orders into consideration. And if you are experiencing a shortfall, you can access other funds available like eBucks, savings, and credit - all in one useful place.
  • My credit status - FNB assess various data, including internal information and credit bureau info, to rate a customer's credit fitness across seven helpful indicators. Know exactly what you're doing right, and where you could improve, with personalised tips on late payments, credit limit usage, your track record and more.

nav» Money is available on the FNB App.

eBucks Travel

eBucks Travel incorporates a fully-fledged travel offering with functionality that speaks directly to FNB customers' travel needs. From booking a flight, hiring a car to airport transfers with Avis P2P and access to the Slow Lounge, FNB customers enjoy convenience, peace of mind and so much more.

  • Navigate with ease - Compare flights across multiple airlines and pay using eBucks, your FNB Card or a combination of both.
  • Enjoy convenience - Create profiles for friends and family you often travel with and never have to enter their details again. Main members can book discounted flights for family without having to travel with them. An FNB customer registered with the eBucks Rewards Programme can get up to 40% discounts on periodically alternating flights on both local and international airlines.
  • Experience peace of mind - Make seamless, secure payments without the need to enter card details or a one-time pin (OTP) through FNB Pay on the FNB Banking App, minimising the risk of phishing and offering yet another trusted way to make online payments.

eBucks Travel is available via www.ebucks.com on Mobile or Desktop, FNB Online Banking and will soon be coming to the FNB App.


FNB Offers

As part of an ongoing strategy of personalising rewards based on a customer's unique banking behaviour, eBucks Rewards will launch FNB Offers, an instant rewards programme designed to surprise and delight members with instantly redeemable eBucks or discounted partner vouchers for performing every day banking tasks.

The launch of these helpful innovations follows the recent launch of eWallet eXtra, a mobile bank account that allows unbanked and underbanked South African consumers to use a feature phone or a smartphone to open a bank account without ever walking into a branch.

FNB also introduced a mini-ATM that uses biometrics as a means of validation for consumers.

"Through our leadership position in innovative banking, and consistent pioneering of solutions that prioritise helpful banking, FNB continues to make strides towards becoming a trusted money manager amongst consumers. As a result, all current and future innovations are conceptualised with the customer in mind," concludes Makanjee.

FNB solves for SME needs through digital innovation


16 May 2018: FNB today announced that SMEs can now completely switch or open a new bank account in less than five minutes through selfie authentication and digital KYC on the FNB App.

This paperless cheque account opening process uses biometric technology to validate the business and its owner, allows the SME to order and courier new cards, switch debit orders and setup digital banking immediately.

FNB CEO, Jacques Celliers says, "Today marks a significant milestone in our 180-year history as we move beyond being a digital innovator to a broader contextual platform disruptor. It is through this contextually helpful platform that we can offer holistic financial solutions and become a trusted partner to the broader society. This will enable us to help create a better world for years to come."

Mike Vacy-Lyle, CEO of FNB Business says FNB has worked hard to understand how SMEs operate and the day-to-day challenges they face, which are considerable. We have coined the phrase "businessism" inside FNB, driving our focus on solutions that remove those moments of angst that businesses face - from registering a company and opening a bank account, to applying for credit and managing the businesses daily affairs.

"Our digital solutions now cater for the entire SME value chain via Online Banking Enterprise™ which is linked to the FNB App," he adds.

The focus on fintech has grown significantly on the African continent. Although there are a number of players who actively innovate in the SME market, they often lack scale and fail to deliver a single platform that is convenient and does not pose additional cost, security and administrative burdens.

"Therefore, it was imperative that we not only integrate key solutions, but further incorporate trust and simplicity to our platforms, while ensuring that we do not add complexity in an already over-crowded marketplace," says Vacy-Lyle.

FNB Business continues to receive a positive response from SMEs for the value it provides through its digital platform - with notable achievements in the past year alone:

  • An average of 3000 new company registrations were initiated every month on digital channels in the last year, with more than 1,000 assisted CIPC registrations per month.
  • Over 300 000 customers accessed digital account confirmation letters online (with SARS endorsement) eradicating the need to go to branch or call in for assistance.
  • eWallet Pro payments between SME's and casual workers increased 40% year on year.
  • Over 4 500 customers used DocTrail which allows businesses to easily attach source or reference documents to all their digital payments in the cloud, creating a transparent and auditable trail for every payment execution.
  • Over 200,000 customers registered to use FNB's suite of Instant Value Add solutions, that help take the angst out of their day-to-day business administration of bookkeeping, payroll and invoicing.
  • FNB Instant Invoicing produces over 40,000 compliant tax invoices per month for businesses;
  • Business clients can now make payments, including Pay-and-Clear now, as well as those that require multiple authorisations on FNB's digital channels.
  • More than 50% of all credit applications in FNB Business are now digitally originated and approved representing more than R200m per month of new SME credit facilities.

The FNB App now plays a central role in redefining the entire SME customer experience from the on-boarding process, to enabling businesses to manage day-to-day banking, authentications, business administration, service and relationship management. Conveniently, all on one, safe, easy-to-use platform.

Mobile bank accounts for unbanked and underbanked customers unveiled


18 April 2018 - Today, First National Bank (FNB) announced the launch of eWallet eXtra, a mobile bank account that allows unbanked and underbanked South African consumers to use a feature phone or a smartphone to open a bank account without ever walking into a branch.

eWallet eXtra will have no monthly fees and consumers are not required to submit any paperwork, requiring only their name, surname and ID number on a mobile device. The solution will be available by June 2018.

"This is a simple, accessible and cost effective solution. If you are above the age of 16 and own a cellphone, you'll be able to get a mobile bank account with a unique account number in less than three minutes, and you don't need a bank card to transact," says Gugu Zikhali, FNB Head of Transaction Products: Mass Market.

"eWallet eXtra will enable users to send or receive deposits from individuals and other banks, store funds for an unlimited period, pay accounts and also buy prepaid products like airtime, data and electricity. Users can also on send to other recipients and withdraw at any FNB ATM or at tills across participating *SPAR stores, which also allow for over the counter purchases. The daily spend limit is R3 000 and R24 000 per month," adds Zikhali.

eWallet eXtra users will be able to view their bank account balance and transaction history. Those who use an FNB Connect SIM will be able to access eWallet eXtra for free as they do not need airtime. Full control and safety are also key features of eWallet eXtra and the first layer of security allows users to generate a PIN code to access their account. To safeguard customers, eWallet eXtra will not carry debit order functionality.

FNB says the success of eWallet eXtra will be due to its ability to address the gaps that the bank has identified in its analysis of entry-level bank accounts and its popular eWallet remittance service. Pieter Woodhatch, CEO of FNB Easy says traditional bank accounts which carry monthly fees and accept debit orders, restrict clients to use cards, do not meet the unique needs of irregular income earners such as seasonal workers.

"This is why we have integrated some eWallet functionality into the eWallet eXtra mobile bank account. After an in-depth assessment of eWallet user patterns, we realised that in excess of one million users have been effectively using it as a bank account despite the fact that the solution was designed as a remittance service," explains Woodhatch.

"We believe that eWallet eXtra is the ideal solution to address this important gap and based on the analysis of our customer base and research on financial inclusion, we estimate the size of this market to be in excess of 11 million," he adds.

Woodhatch points out that digital adoption is the main solution to addressing the gaps in financial inclusion. "66% of regular eWallet users leverage digital platforms and mobile devices remain critical in extending banking services to unbanked and underbanked populations. Digital gives customers full access to their money and puts them in control," Woodhatch concludes.

Five considerations for startups looking for funding


10 April 2018 - Many entrepreneurs in South Africa consider funding to be a major stumbling block when it comes to starting or growing a business. In this tough environment where a majority of start-ups fail within the first 5 years of operations, the type of funding that a startup secures to either launch or grow a business often determines success.

Mags Ponnan, Head of the Business Incubator at FNB Business believes that entrepreneurs should rather focus on lean business models that do not require much funding injections at regular intervals.

"A business has one core goal and that is to prove that the business concept or the big idea can and will work once rolled out and operational. Often, businesses at launch phase complicate the core offering to a point where they require far more funding than they are capable of accessing. What you end up with is a good business succumbing to a poorly managed approach to launching or scaling," explains Ponnan.

Ponnan shares insights on considerations that entrepreneurs should ponder when seeking funding:

Ensure that current business model is as lean as ossible - Having a low cost model ensures that the business has a better chance of having a higher profit margin and more cash flow to put back into the business' daily activities. This not only builds confidence in a possible funder's mind, it reassures one that the entrepreneur has potential to achieve his or her business strategy.

Be certain that the business really needs capital injection - This is a crucial step for entrepreneurs as funding should not be the first consideration but an option. Importantly, some entrepreneurs forget that an investor or lender will need a strong plan of action which will highlight where the funds will be directed and managed, and if the entrepreneur can successfully implement the plan.

Tracking the results and impact of the funds being injected in the business is crucial - If the entrepreneur has efficiently managed the little funds that they have been running the business with, it could mean that funds provided may lead to achieving the more "bang for buck", and a bank or investor may be more prone to invest more funds in the business.

Always phase your projects over a period of time - Many entrepreneurs make the mistake of asking for the total sum up front, this increases the risk exposure of the investor or lender. But it is easier to ask for smaller amount which will be enough to kick off the 1st phase and once you have demonstrated the results and shown traction, you can go back for more funds for the next phases to be implemented.

Always try to raise the funds by yourself - Entrepreneurs should also consider using personal savings, earnings, or borrowing from friends and family members. This might take longer and be harder for the entrepreneur but that extra effort will be rewarded as there's no interest on the repayment and there may be flexibility around the timing of the repayment.

"The thing to always remember is that access to funding comes at a cost. Entrepreneurs need to understand that borrowing money that will need to be paid back at an interest should always be the last resort. Should the business be in a space where it requires funding, then it should be calculated and measured during implementation and there should be a plan on how it will be repaid," concludes Ponnan.

Why insurance premiums have almost doubled in the past 5 years


12 April 2018 - Many business owners often grapple with insurance premium increases without taking time to understand what leads insurers to hike premiums.

Malesela Maupa, Head of Insurer Relationships at FNB Insurance Brokers, says understanding some of the common factors that impact the price of premiums can help businesses plan ahead for unavoidable increases when drawing up their budgets.

He unpacks five reasons why insurance premiums have doubled over the past five years:

  • Claims frequency and severity - there has been a substantial increase in the frequency and severity of losses in the past five years, which has had a huge impact on risk underwriting and insurance premiums. Insurers operate on a principle of insurance that is very simple, whereby they pool premiums from many clients with exposure to similar risks and pay for losses experienced by those clients in the same category. However, in order for insurers to be profitable, they work on acceptable loss ratios ranging from 60% to 70% between collected premiums and claims paid. These loss ratios have been on the increase as a result of a rise in claims paid.
  • Inflation - the average cost of claims has considerably increased over the last couple of years due to technological advances, the cost of materials used to make products more durable, complex and expensive repair methodologies, modern methods of construction, more technical expertise requirement to be compliant and increasing building rates. This is linked to the Consumer Price Index (CPI) which has increased from 85 index points in 2014 to 105 index points in 2018.
  • Economic downturn - tough economic conditions have placed an enormous strain on business' balance sheets, and thus they cannot carry higher excesses which pushes premiums to be higher as insurers will be picking up more small value losses that occur more frequently.

"Furthermore, during tough economic conditions there is often an increase in the number of liquidated companies or companies reduce or cancel insurance covers to try to survive. This ultimately reduces the pool of clients paying premiums and results in clients paying higher premiums," says Maupa.

  • Extreme weather conditions - recently, we have seen an increase in the number of catastrophic losses due to extreme weather events affecting businesses and ultimately insurers and reinsurers. This has significantly increased the re-insurance premiums insurers have to incur and unfortunately this cost is passed on to customers.
  • Changes in legislation and regulations - the regulatory environment has become more stringent and in order to comply businesses have had to incur more costs. For example, a huge proportion of the commercial property insurance market is dominated by real estate, and with an increasing requirement for well designed, environmentally friendly properties and building methods, fire-resistant properties and energy efficient properties have fortunately reduced premiums from a risk management perspective. However, the cost of the materials used and technical expertise required to build and manage these properties has been increasing and insurers utilise these high values to charge premiums on these properties.

"Although the above factors may vary depending on the nature of the business being insured, they provide a good guideline of what insurers take into account when considering increasing premiums," concludes Maupa.

Fuel franchising sector in South Africa is growing


27 March 2018 - Fuel retail sector continues to grow in spite of the relatively sluggish economic growth in South Africa. According to the South African Petroleum Industry Association (SAPIA), this sector contributes 8.5% to the South African Gross Domestic Product (GDP).

"There are more than 4,600 service stations in South Africa and a collected annual turnover in excess of R324 billion. This industry has been gradually increasing over the past three years and we expect it to continue in the same trajectory over the next coming years," says Ronél Fester, FNB Franchise Industry Specialist.

She shares five key insights that continue to characterize this important sector.

Biggest contributor to the bottom line: Fuel is still the main driver in this industry - the comparison ratio between money coming from a convenience store and fuel is about R1.20 to R1.40 per liter sold on the petrol station.

Alternative Profit Opportunities (APOs): Consumers enjoy convenience. As a result, more and more forecourts are becoming a one stop shop. Consumers are now looking to do their banking, shopping, quick service meal and convenience shopping, while they are filling their petrol tanks.

Fuel loyalty programs: This is no longer a question of can I do it or not, it is about how can I incentivize my customers and make them come back for more. If implemented well, this can be a very powerful tool to market your brand.

Technological advancements: With the ever changing environment, fuel stations are diversifying their offering and streamlining efficiencies to have less cash on site. This also reduces the stress issues of handling cash for the business owner and consumers.

Leading in Africa: South Africa is the biggest consumer of fuel on the African continent, claiming more than 20% of the market share.

"Like any other business, the fuel retail sector is not immune to economic headwinds; in fact, it is not an easy sector to operate in. However, it is by far one of the industries that still offer growth potential for entrepreneurs that are looking for a proven business model that is lucrative," concludes Fester.

PMR Africa crowns FNB Islamic Banking


03 April 2018 - PMR Africa has awarded FNB Islamic Banking as first in the overall judging category of "Leaders and Achievers who have contributed significantly to the Gauteng economy".

The awards are rated by a random provincial sample of 100 respondents comprising of CEOs, managing directors, business owners, company directors, managers and senior community leaders representing the Muslim Community in the Gauteng Province. FNB Islamic Banking was also rated first in both the Retail and Business categories.

The PMR Africa awards are the end result of a research process whereby companies, departments, institutions and individuals are nominated and rated by respondents against specific attributes or criteria. A company, department, institution and individual cannot "enter" the research process but must always be nominated and rated by the respondents. The ratings are always based on the perceptions of the respondents.

"These awards in particular, are significant as they indicate the views and opinions of independent Muslim business and Muslim individuals who nominated FNB Islamic Banking. FNB Islamic Banking was awarded the Diamond award for both of the aforementioned categories which signifies the highest category that one can win in," says Amman Muhammad, CEO of FNB Islamic Banking.

FNB Islamic Banking offers an end to end Islamic Banking value proposition to the customer which is appreciated as the customer is recipient to a world class banking service that is also Shari'ah compliant. It is through this acknowledgement that FNB Islamic Banking won these awards.

Muhammad explains that apart from growing the core customer value proposition, the bank is focusing on our customer by ensuring that they are beneficiary to the very best of innovation and customer service that FNB has become synonymous with.

This award is received on the back of having won a number of awards locally and globally, including winning the Global Islamic Finance award that rated FNB Islamic Banking as the Best Islamic Banking window in the world in 2017.

"FNB Islamic Banking prides itself on delivering an unparalleled Islamic Banking product selection, 24/7 customer access to their funds through FNB's sophisticated digital channels, a rewards program that is the envy of every other bank all backed up by uncompromising Shari'ah compliance, all this to service consumers in a world class manner," concludes Muhammad.

Consumers to braai more pork


23 April 2018 - With the continued decrease in the price of pork whilst other meats trend higher, consumers who are feeling the pinch are most likely to settle for pork as an alternative.

The pork industry, unnecessarily suffered a severe blow following the recent outbreak of listeriosis, the loss to the value chain so far could exceed R1 billion, however, the positive end to this is that consumers have benefited from the lower pork price at producer level.

"Even though demand for processed and cold meats fell sharply due to the health and safety concerns from the listeriosis outbreak, pork farmers have now had to redirect the pigs for the fresh meat market thereby creating a surplus and in so doing have further increased pressure on low prices," says Paul Makube, Senior Agricultural Economist at FNB Agri-Business.

Another positive that is working in the favour of consumers is the decrease in the cost of maize, which is a large component of animal feed.

Maize constitutes over 75% of livestock feed, hence its supply and prices have a major influence on the total cost to customers. This is particularly the case in poultry and pork as they are mainly produced under intensive feeding systems.

"SA now has a surplus in maize and the expected 2017/18 production is estimated at over 12.42 million tons. Therefore, if maize prices remain flat they will have a major impact in sustaining the lower prices for consumers," says Makube.

Even though overall meat prices in general remain elevated, when excluding pork, meat prices at producer level are currently about 6% higher relative to last year, but marginally down on last year if pork is included.

In the end consumers continue to benefit from the low producer prices for pork, and this is a trend that will hold over the short term with the possibility of a further decrease in the long term as the feed costs continue to decrease.

Reasons why you may find it difficult to save


10 April 2018 - Procrastinating to save can derail you from achieving your financial goals. People who have a healthy relationship with money understand that saving has very little to do with the size of your bank account, it all depends on your relationship with money.

Eunice Sibiya, Head of Consumer Education at FNB, says "Most people would like to save because they understand the financial benefits of having a safety net. However, saving usually takes the back seat simply because of the hesitation to make sacrifices. Understandably, consumers are hard pressed financially, but the essence of saving is starting small then building up from there."

"If you are unable to save, perhaps it's time to conduct an introspection of the relationship you have with money," adds Sibiya.

Sibiya believes these could be some of the reason you are unable to save:

Poor attitude towards money
A poor relationship with money is characterised by aimless spending on things that will have no bearing on your long-term financial future. This may include taking debt to finance your lifestyle or overspending on things such as entertainment and clothes. It's important to pay attention to how and what you spend your money on and ask yourself if you are deriving any value from such expenses.

Lack of financial goals
Without setting goals you are unlikely to get very far with your finances; this is simply because money leaves your account as quickly as it came in because of frivolous spending. When you have goals and are fully committed, you are able to plan your finances according to what you want to achieve.

Not asking for help
It's advisable to consult a financial advisor to help you chart a way forward for your financial future, especially if you are struggling to prioritise. Not being able to save now does not mean the situation cannot be turned around. For example, if you are over indebted you may have to focus on clearing your debt before you start committing yourself to saving.

Being governed by YOLO
Yes, it's true that you only live once (YOLO) but this also means you have a single lifetime to make your money work for you. It's important to take the future into consideration when dealing with money, if you don't save for both short and long-term goals you may end up financially constrained in future. Have financial future plans and avoid living in the moment.

Procrastination
Saving is a necessity, and this applies to everyone whether you have a lot of money or not, you still need to save. Postponing the decision to save will only put you in a compromising financial position. For example, if you have an emergency you may not be able to fund it from your own pocket because you have no money set aside for emergencies. This can lead you to debt in order to deal with the emergency.

"Being able to save does not necessarily mean putting large sums of money aside, it's possible to start small and build up from there. South Africans are notorious for not saving, so to correct this perception, the only solution is change of attitude towards money," concludes Sibiya.

FNB launches South Africa's first biometric mini-ATM


07 May 2018 - FNB has become the first bank in South Africa to introduce a mini-ATM that uses biometrics as a means of validation for consumers.

Known as TouchPoint, the device functions as a selfservice kiosk from which customers can conduct transactional banking such as withdrawals, transfers and payments, view statements, purchase airtime and electricity and perform card cancellations. In addition, the device also allows for new account opening by reading a consumer's thumb print.

Lee-Anne van Zyl, CEO of FNB Points of Presence, says "The TouchPoint validates a customer's identity by scanning a fngerprint placed on the biometric reader and it can detect false fngerprints to prevent fraud. The identity of the customer is then verifed with the Department of Home Affairs to ensure the self-service account opening complies with the relevant laws." Over the years, FNB has been pioneering efforts to extend banking services to unbanked and underbanked communities through the roll-out of self-service digital platforms such as mini-ATMs and Automated Deposit Tellers (ADTs).

The TouchPoint device has been successfully piloted in Gauteng since November 2017. The aim is to place the devices in branches, community retailers in townships and rural areas across South Africa. A total of 50 TouchPoint devices will be introduced in select townships during the next 6 months.

"The introduction of biometric validation on self-service devices is an important step to making banking much more accessible to South African communities. As the use of biometric technology becomes more pervasive in the everyday life of customers, it's important to use this technology to accelerate access to banking services," says van Zyl.

"This is a continuation of our journey to broaden fnancial inclusion and we believe that digital platforms play an important role in that regard. In particular, this innovation allows us to advance our partnership with small businesses in local communities to enable affordable banking for customers at community retailers," she adds.

The bank's partnership with small businesses in communities will also contribute to efforts to fully integrate small businesses into the banking ecosystem.

"Local retailers are often the back-bone for many communities, especially senior citizens who rely on local outlets to access basic services. We believe that our partnership will drive foot-traffc to these small businesses and help them to provide increased value to customers" concludes van Zyl.

Consumers cautioned against excessive spending as rates remain unchanged


24 May 2018 - Consumers are encouraged to exercise restraint on excessive spending despite the SARB's decision to keep interest rates unchanged.

CEO of FNB Consumer, Dr Christoph Nieuwoudt says the unchanged interest rates do not give consumers a license to spend excessively. He says, instead, people should use this opportunity to improve the management of fnancial instruments such as credit and savings.

"The economic pendulum has shifted significantly since the previous rate cut and consumers' disposable income has come under significant pressure due to the substantial rise in fuel prices and a relatively unstable rand. With further hikes in fuel prices in the next few weeks, it's critical for consumers to be a lot more responsible about their finances."

"While credit continues to serve a very important need, we urge customers to use it for activities that add value to their lives, such as education or home renovations. Similarly, consumers should prioritise savings to boost their cash reserves for rainy days," says Dr Nieuwoudt.

According to FNB, consumers should take advantage of worthwhile value-added services to cover some of their expenses.

The bank encourages its customers to maximise its eBucks rewards programme which offers discounts of up to 40% on select purchases. In addition, FNB recently launched the nav<< Money platform which is housed on the FNB App, to give customers a single view of their finances while empowering them to manage money a lot better.

"Even though South African consumers have shown resilience against tough times over the years, it's important for people to prioritise their money management. The balance between one's credit exposure and building up savings is becoming more important because economic swings are increasingly difficult to predict. With more financial discipline, consumers will be able to realise a lot of value from the right credit and savings instruments," says Dr Nieuwoudt

What rates on hold mean for your investments


25 May 2018 - The SARB MPC has decided to keep rates on hold for now, in line with our expectations. The Governor did take on a more hawkish tone, as expected, but it was far less hawkish than we anticipated. While he conceded that the balance of risks to the inflation outlook have tilted to the upside, inflation is still expected to remain in the target band through to 2020 in the absence of any demand side surprises (higher than expected economic growth and consumption expenditure)

Despite the bank's Quarterly Projection Model (QPM) indicating one 25bps increase in 4Q18, one 25bps increase in 2019 and two 25bps increases in 2020, we continue to expect that rates will remain flat through 2018.

With interest rates on hold we expect very little investment market response. From an investment perspective, interest rate changes are therefore expected to play less of a role near term. Per the governor, policy remains accommodative and should continue to support a recovery in interest rate sensitive stocks. With debt repayments not expected to increase, low inflation and an improvement in confidence, we anticipate continued support for clothing, furniture, car retail, and travel and leisure stocks.

Chantal Marx: Head of Research: FNB Wealth and Investments

Philanthropy, giving that achieves lasting social change


30 May 2018 - There's a widely held belief that philanthropy is the same thing as charity. It's an understandable misperception because while the purpose of charitable giving is primarily to alleviate the suffering caused by social problems; philanthropy works mainly to address and reverse the cause of that suffering

Deblina Rout, well-known author on Letsendorse.com states that, "It is important to note that philanthropy is noticeably different from charity, because charity focuses on eliminating the suffering caused by social problems, while philanthropy focuses on eliminating social problems".

Philanthropic giving often has a clear strategy to influence systemic change improve humanity. "Such philanthropy is important for the sustainable wellbeing of all South Africans. Individuals and businesses seek to elevate their giving beyond mere charity and, instead, leverage their financial resources to help eliminate social problems and environmental challenges," says Prince Siluma, Head of FNB Philanthropy.

He adds, "Despite tougher trading conditions in almost every sector of the economy, corporate South Africa continues to demonstrate its commitment to social transformation through corporate social investment (CSI). The growth of philanthropy by individuals and corporates, has gained momentum in the past few years. It is a fundamental component of an effectively functioning democratic society and exists to facilitate transformative giving by South Africans who have a desire to leverage their resources; and in many cases their skills that will contribute to positive impact on individuals, communities and the environment."

According to the 2017 Trialogue CSI Hand Book, it is reported that the total CSI expenditure in South Africa was estimated to be R9.1 billion in 2017, significantly up from R8.6 billion in 2016. Trialogue has observed that CSI has become more strategic. The report indicated that the CSI expenditure has mostly beneftted the education sector, which continues to receive the most support with over 91% of companies supporting the sector in 2017.

"The desire of many individuals and organisations to give often fails to translate into effective philanthropic action, mainly because of a lack of access to effective ways of channelling, and monitoring the impact of that giving," says Siluma.

Like most true philanthropists, customers are not interested in giving merely for the sake of giving, or for the emotional benefits that it achieves. Nor do they merely give to benefit from the tax benefits associated with such giving. "People have a sincere desire to give to effect sustainable social change and the betterment of society. And they recognise that, when undertaken effectively, such giving not only benefits the less privileged; it creates a virtuous circle in which all of society is eventually uplifted thanks to sustained socioeconomic change," says Siluma

Philanthropic intentions are often thwarted by concerns about whether the funds people donate would achieve the outcomes for which they were intended. "There needs to be passion for social transformation. And we live that passion by enabling individuals to practice true philanthropy that achieve maximum social development impact which creates the means for effective delivery on what is identified as a key social purpose, and in doing so will help build an equitable, inclusive, equal opportunity society that all South Africans desire," concludes Siluma.

About the FNB Philanthropy Centre

About the FNB Philanthropy Centre


The FNB Philanthropy Centre partners with FNB clients to tailor a planned, strategic philanthropy approach, that maximises the social impact of their giving in a structured, coordinated, and fully measurable way. To meet the diverse needs and preferences of all our philanthropic clients, the FNB Philanthropy Centre is a full-service offering with an experienced team of specialists. These specialists work together to deliver exactly the outcomes desired by our clients. The service we offer cover the full philanthropy spectrum, ranging from matching available donations to aligned causes for existing organisations and assisting with the establishment of private trusts or foundations, to structuring and optimising investments, applying for tax exemptions, overseeing all administration and ensuring the appropriate utilisation of donated funds.

Save now so you can retire comfortably


03 July 2018 - Saving should be an ongoing goal for you and your family. Having a savings mindset will help you live comfortably in your golden retirement years.

Preenay Sathu, Wealth and Investments Product Specialist at FNB says that, "We often leave saving for the latter parts of our life and underestimate the consequences that this has on our retirement. With the current rate of inflation and economic changes, consumers should start saving early rather than later. Retirement savings should be factored as part of your long-term goals which can assure you a lifestyle that is financially safe and secure."

"There is no timeframe to start saving but the sooner you start the better. Like any other savings plan, saving for retirement should begin in your early working career. Any delays will mean that when you eventually start your retirement journey, you will have to contribute a larger percentage of your monthly income which may not be affordable based on prevailing financial circumstances," says Sathu.

Starting early will help you in the long-term and ensure that you settle down comfortably during your retirement. When saving for retirement, it is important to manage your expenses and avoid wasteful expenditure. This will further assist in one falling into unnecessary debt traps.

Switching from contract to prepaid, taking advantage of discounts and using rewards such as eBucks for petrol and groceries are some of the ways that can help you reduce your expenses.

"Debt is the last thing you need to worry about when you are in retirement as it can derail you from enjoying a financially comfortable retirement. Draw up a detailed budget plan that highlights all your expenses and savings priorities", adds Sathu.

An option to consider in your retirement is having an emergency fund, which acts as a great buffer should you need access to money at short notice. This money can be used in the unplanned event of a hospital visit or even repairing your car.

Ongoing review and monitoring needs to be provided on all the different investment and savings products one holds to ensure that you remain on track to achieve your retirement goals. If you are uncertain in terms of where you are in your retirement journey, please contact a professional financial planner to help and guide you accordingly.

"We will all be on different paths and stages of our retirement journey. This means that you will have to be patient, conscious of your goals and invest wisely to ensure a safe and comfortable retirement," concludes Sathu.

FNB branches widen digital banking reach


2 July 2018 - FNB customers are increasingly using the bank's branch based Digital Zones to transact. The bank says the use of its Digital Zones has grown considerably since introduction in 2016 with more than a third of all service transactions done in branches, completed in the digital zone.

Lee-Anne van Zyl, CEO of FNB Points of Presence, says "Digitising branch banking is central to our holistic digital banking strategy which incorporates other channels such as our banking app. We are delighted to see customers who traditionally process transactions over the counter, increasingly using our array of self-service channels at our branches."

In terms of user demographic, customers aged between 31 - 45 constitute the largest group that uses Digital Zones followed by customers aged between 46 - 60. FNB says approximately 80% of its branches now have Digital Zones which are supported by an eBanker whose responsibility is to assist customers.

The growth is complemented by the growing list of FNB branches that enable customers to use free WIFI at select branches. In an effort to improve access to digital banking, FNB's banking app is also zero rated across major networks.

"We encourage our customers to a take advantage of efficient digital banking channels, which are not only convenient but equally cost-effective. Customers who use our Digital Zones typically spend less time in the branch and they are most likely to spend less on bank related costs. The other implication is that we have optimal control of foot traffic into branches, which enhances efficiencies and customer experience," adds van Zyl.

Earlier this week, the Columinate South Africa's 2018 SITEisfaction® report revealed that customers banking on FNB's Digital channels currently have the most gratifying user experience. FNB dominated overall customer satisfaction metrics on both the Best Mobile Banking and Best Internet Banking categories.

How to choose the right course for your donation?


28 June 2018 - The South African philanthropy landscape is changing rapidly as perceptions and approach to giving has become more complex. Today, 'Philanthropists' and donors identify with a wide range of social problems and understand the importance of solving and prioritising strategic programmes; with the aim of creating large scale quantifiable social impact. This has influenced donors' attitudes around issues of transparency, governance and measurement tools that ensure they get the biggest bang for their charity buck.

An increasing number of South Africans are getting involved in giving; making regular donations to different non-profits ("NPO's"). "Identifying the right partner or cause remains one of the most important decisions for a donor. Research indicates that people choose to support causes that are close to their heart. In some instances, a donor or a relative has or have survived an illness, like cancer for example, or they have personal experience with an important social issue. This is also the case when people feel some affinity with a cause, like animal welfare for example," says Prince Siluma, Head of FNB Philanthropy

"The problem with choosing a cause this way; is that you're likely to partner with an organisation that already enjoys a lot of support or an organisation that may not make your Rand donation go further in achieving the impact you hope to see. We find that a lot of social interventions have a weak or no positive effect, coupled with the risk of fraud targeted at NPO's with weak governance controls," adds Siluma

The complexity of philanthropy is that there are many deserving causes and this makes your decision a little bit more difficult. To navigate this process, you must establish your own 'Giving' strategy. Siluma explains that, "For your gratuitous giving to have a quantifiable and social impact, donors must be able to invest their time in ongoing research and know what, how and who they want their donation to go to as well as determine the outcome they want to see."

Once the initial research is complete, you will be able to set out your 'Giving' strategy and select a non - profit organisation.

  • Compare mission statements; list the non-profits that fit your predetermined criteria and focus on organisations whose objectives resemble or complement your values. All non-profits have founding documents that set out the objectives of the organisation. This information should be listed on their websites or social media platforms.

  • Make sure organisations are registered: there are various forms of registration for non-profit organisations in South Africa. They are either established as trusts (with the Master of the High Court), non-profit companies (with the Companies and Intellectual Property Commission-CIPC) or as voluntary associations in terms of common law. The non-profits must be registered and approved by SARS as a Public Benefit Organisation ("PBO") and have proof that they qualify in terms of section 18A of the Income Tax Act. If your chosen organisation doesn't meet these specifications, your donations may not be tax deductible.

    In addition to the SARS approval as PBO, many non-profits voluntarily register with the Non-Profit Organisations Directorate in the Department of Social Development for NPO status. Both the PBO and NPO registered non-profits are issued with a registration number that should be reflected on all their public documentation and websites.

  • Transparency and accountability is key to knowing that your donation will be used for what it is intended. The organisation's website or social media pages should provide information that include a list of board members and organisational leadership and staff. It should have details of their programmes and their annual reports, including financial reports. This will allow you to track how funds are spent. It will demonstrate if there is some level of controls in place.

  • Measurable Impact is key to understanding the impact of the organisation's goals and achievements. A reputable organization will give details of the reach and impact of their programmes and clearly describe their measurable goals and use concrete criteria to describe its achievements, to support its impact claims.

It should be of serious concern if the organisations that are calling for donations fail to disclose any of the above information. "Undertaking such comprehensive research and due diligence may be overwhelming to many Philanthropists and Donors, due to the knowledge, effort and time required to identify the right partner/cause. Where possible social investment professionals can help in undertaking this process on their behalf," concludes Siluma.

The team at the FNB Philanthropy Centre understands what to look for when undertaking the research and due diligence on non-profits, which includes the assessment of governance and control measures and the capacity to deliver impactful programmes. For more information contact philanthropycentre@fnb.co.za

FNB ranked best Digital Bank in SA


25 June 2018 - Columinate South Africa's 2018 SITEisfaction® report has revealed that customers banking on FNB's Digital channels currently have the most gratifying user experience.

FNB dominated overall customer satisfaction metrics on both the Best Mobile Banking and Best Internet Banking categories.

Giuseppe Virgillito, Head of Banking App at FNB says "We are honoured to once again be recognised as the best Digital Bank in South Africa. Digital Banking remains a core strategic pillar for the bank, both from an enablement and convenience perspective. Our customers not only appreciate a consistent user experience, but also getting access to a secure digital platform that allows them to effortlessly cater for their holistic banking needs."

"We continue to reach important milestones in our digital migration journey as more customers become accustomed to our award-winning Banking App, Online and Cellphone Banking channels. However, what is even more gratifying is to get direct feedback on our customers' satisfaction with the hard work we put in to provide them with a seamless banking experience," adds Virgillito.

The SITEisfaction® report insights on customers' satisfaction levels with FNB's Digital Banking channels are synonymous with how the brand is perceived in the market:

FNB was recently named as South Africa's Most Valuable Banking Brand in the 2018 Brand Finance® Africa annual survey. According to Brand Finance®, FNB's 22% rise to reach R19.4 billion in brand value was the biggest jump over the last year, which saw it surge past competitors in the banking category.

The bank was further recognised as Africa's leading bank in The Banker's, Top 500 Banking Brands Report 2018*. Ranked 141st in the global banking table, with a brand valuation of $1.4bn, FNB grew its brand value by 23% in the past year.

"These accolades are testament to our ongoing commitment to deliver a consistent brand experience to our customers in a highly competitive market environment. We will continue to innovate and pioneer the use of technology and data to provide customer centric solutions that address the ever-changing needs of consumers," concludes Virgillito.

Practical ways to teach your kids how to manage money


26 June 2018 - In the digital age, parents cannot afford to neglect the crucial responsibility of teaching their kids about managing money.

Ester Ochse FNB Wealth and Investments Product Specialist says whether it's a billboard on the way to school, lifestyle images in a magazine or social media images of their favourite celebrity or idol - children can access information which may give them a misguided view of how money is 'easily' earned and how it should be used.

"Once a child has pre-conceived ideas of how money management supposedly works, it may be difficult for parents to entrench their preferred principles. Hence, it's important to start the money conversation very early in a child's life," says Ochse.

There are practical ways to help your children get to grips with managing money:

  • Household budget - whether it's weekly or monthly, all families that earn income must ensure that every rand is dedicated accordingly. Get your children involved in this process and give them adequate responsibilities to make every rand go a long way.

  • Chores - start introducing educational exercises to help your kids appreciate that 'money doesn't grow on trees.' This could be small tasks where they get incentivised upon completion.

  • School trips - Schools often plan trips or learning excursions to places such as the local zoo or museum. While it's the responsibility of the parents to plan for this financially, there's no harm in allowing your kids to help in managing the savings kitty for this.

  • Family vacations - not every family may have the resources to go on a vacation now and then but where possible, parents can task their kids to manage holiday savings, especially if it's a destination that kids are looking forward to visiting.

"Teaching kids about managing money needs to be a practical exercise instead of a conversation once in a while. This way, the awareness becomes a part of the child's life and they start adopting the same principles in other areas of their lives," concludes Ochse.

Create a goal-based savings mindset


30 July 2018 - As National Savings Month officially kicks off; First National Bank (FNB) encourages consumers to make a conscious effort to save more, spend less and work towards building a culture of savings in South Africa.

Economic pressures, rising inflation and the relentless increases in day-to-day consumable goods continue to erode the purchasing power of consumers; pushing them further into debt and expenditure. "This creates significant pressure on South African households; as they are forced to look for alternate means to finance their lifestyles and keep up with rising expenses. We encourage individuals, households and families to start saving early; as this will help them in the long-term," says Himal Parbhoo, FNB CEO Retail Cash Investments.

According to the South African Reserve Bank, Quarterly Bulletin (March 2018), South Africa's national saving rate (gross saving as a percentage of GDP) decreased from 16% in the third quarter of 2017 to 15.8% in the fourth quarter. The deterioration reflected marginally weaker savings by households while the saving rate of corporate business enterprises and general government remained unchanged.

A great starting point for savings is to have a goal in mind; which could be short, medium and/or longer-term goals. Short-term goals could be anything from saving for a holiday, deposit for buying a car, saving for a year's rent, wedding or saving for unforeseen expenses or emergencies. "South African consumers need to look at building up cash reserves early, so when unexpected expenses arise, they have a savings bucket that they can dip into. This buffer will alleviate the need to borrow more and ultimately assist in breaking their debt cycle."

He adds that, "Emergency savings are a great way to ensure that you are covered in the event of a car accident, broken window or unexpected trip to the hospital. Ensure that you adequately covered and this is reflected on your budgets. A rule of thumb is to have at least three months' worth of net salary or wages saved to see you through tough economic times such as temporary loss of income or significant unexpected expenses"

Medium and longer-term savings looks at savings for schooling or tertiary education related expenses, additional income during retirement or even investments in other asset classes as well as off-shore. "We often tend to leave these types of goals for later or when the need arises. "We should start putting some money away for long-term goals monthly, rather than leaving it for later."

If invested correctly the interest received from savings and cash investment accounts can be attractive. Not only do the returns increase on the same capital invested, but if those returns are re-invested along with the capital, the compound interest helps increase investment growth at a faster rate. Another way to optimise returns is to save in tax free savings accounts, such as FNB's Tax-Free Cash Deposits, Shares or Unit Trusts, where the interest and returns are free of tax.

Building a savings strategy is a long-term process and is dependent on our life stage and age. "Saving should ideally be a priority for everyone and should be managed on an ongoing basis. It's never too late to start on your savings goals. These goals will help you and your family in the long-term," concludes Parbhoo.

FNB offers a range of savings and cash investment accounts where you will not only benefit from attractive interest rates, but your capital and quoted returns are fully guaranteed, meaning there is no risk of losing your hard-earned money.

Consumers urged to tighten belt as cost of living soars


5 July 2018 - Consumers have been urged to tighten their belts and curb excessive spending as the rising cost of living could take its toll. This month, motorists in South Africa will pay more than R16 per litre of fuel and the increase is expected to trickle into the cost of goods and services such as food and transport.

Ester Ochse from FNB Wealth and Investments says this is a tough cycle for South African consumers as most of these costs are beyond people's control. Food and transport are major spend categories in South Africa and not many people with jobs are equipped or have the flexibility to work from home to be able to save on travel costs, she says.

Ochse says while the rising costs may be out of your control, there are steps to take to manage the potential impact of your transport costs:

  • Avoid peak time travel - While users of public transport do not have much flexibility when it comes to travel time, people with cars have some flexibility to avoid peak traffic. This will not only save fuel but equally helps you save a rand or two.

  • Consider lift clubs - Colleagues and friends who stay in the same residential areas must consider sharing travel costs through lift clubs. The reality is that many people do not use their cars during the day, and only need transport to get to and from work.

  • Maximise rewards - Select banks have partnerships with retailers where customers get something back by using a certain facility or simply swiping a card instead of using cash. Do not miss out on such benefits, especially now, as programmes such as eBucks Rewards offer substantial value.

  • Monthly transport tickets - Public transport services such as busses and trains often have substantial discounts when people buy tickets for a full month. This is a major cost-saving for public transport users as it cushions you against any sudden increase in fares.

"In the midst of low economic growth, South African consumers are unfortunately forced to do more with less and disposable income is expected to remain under pressure in the short-term. It's important for people to adjust to their current reality to keep their head above the water," says Ochse.

Invest in yourself


6 August 2018 - As conversation around women intensifies this month; we need to look at ways that will uplift not only ourselves, but the women around us.

Whilst much focus is placed on empowerment, we need to also ensure that our financial wellbeing is secure and in good standing. "We rarely invest in ourselves financially, which can put a strain on our wellbeing and relationships with loved ones. Painting a financial canvas of yourself serves as a colourful reminder of what your financial commitments and goals are," says Aneesa Razack, CEO Share Investing, FNB Wealth and Investments.

Like a well-coordinated wardrobe, make sure your finances are well looked after. Razack says, "No one needs to be frugal with money but rather look at ways in which you can save and invest in the things that matter. In the myriad of your life events focus on the top five financial goals which can help you become financially savvy and independent."

Razack believes that we should start small and understand what we want out of our savings and investment goals.

"A good starting point is to identify your goals. Short-term goals look at investing for unforeseen emergencies, going on a family holiday or even eliminating your current debt. Whereas long-term goals look at investing in your retirement, for your child's education or even buying Krugerrands. These initial steps are vital in any household, as they will help define your financial path for the year."

In addition, think about your investment options carefully. Nothing worse than investing in something that you don't know or not aware of.

"Investments are like uncharted territories for many, but can be a simple process. The key to a well-defined investment strategy is understanding the fundamentals to your investment goals, its structure and your affordability," says Razack."

Tailor-make your budget to ensure that it encompasses your daily expenses, emergencies, investments and those luxury purchases.

"Set aside a personal finance day, where you can take stock of your finances and align it to your budgeting framework. This will also help you review and ascertain where there is wasteful or unnecessary expenditure," she adds.

In the event of a loved one passing on, ensure that your estate or Will is in order. This is the most important legal document that you will own and needs to be aligned to your financial plan outlines the effects to your financial strategy.

"There is nothing wrong with making yourself a priority, but be aware of your spending habits and how it affects your income. The common notion of 'You are what you wear' is true for many. Seen as your armour to the world, your fashion choice can leave you empowered to take on challenge. This coupled with the right financial behaviour, can help your investment in yourself grow," concludes Razack.

Millennials buying life insurance digitally


7 August 2018 - FNB Life has seen a significant increase in the number of millennials between the ages of 31 and 33 exclusively taking out life policies on digital channels.

Lee Bromfield CEO of FNB Life, says "Our omni-channel strategy which enables us to service customers through various channels of their choice, including online banking and the FNB App continues to pay off as the number of underwritten life policies, which are digitally originated, continues to increase."

Coincidentally, FNB Life generated over 10 000 life insurance quotes via digital channels during Youth Month in June this year.

Bromfield says the insurance administrator and distributor's customer-centric and innovative approach which is tailored towards simplifying and refining the customer experience from initial contact right through to product take up has resulted in a competitive advantage.

Furthermore, the integration of life insurance within FNB's digital channels not only resonates with our broader customers, including millennials who spend a significant amount of their time on smartphones, but affords them the benefit of a single login to simultaneously manage all their financial services and accounts.

"Our customers don't only appreciate accessing our services through a channel of their choice, but also conveniently engaging us in a time that suits them best. Consequently, 50% of all digital life insurance quotes are currently being performed outside of traditional business hours, before 08h00 or after 17h00 during weekdays and 13h00 on Saturdays," says Bromfield.

They also get more value through the bank's eBucks rewards programme which enables life policy holders to earn up to 15% of their monthly premiums back.

FNB Life rewards are based on the same banking behaviour that customers currently use to earn eBucks, making it simpler for millennials to engage and earn.

The average age of customers taking up life policies through non-digital channels, such as bank branches and service consultants is currently around 37 years of age.

FNB helps keep girls in school


14 August 2018 - FNB is providing support to the Sharon Gordon Dignity Dream Organisation, an NGO whose mission is to sponsor girls and women in underprivileged communities with sanitary towels. The two entities have joined forces to distribute 6000 reusable sanitary pads to girls at various schools and Non-Profit Organisations across seven provinces.

Lee-Anne van Zyl, CEO of FNB Points of Presence, says "The aim of this dignity drive is to empower young girls by ensuring that they remain in school and have better educational prospects. It's disheartening that millions of young school girls in South Africa do not have access to essential health and hygiene necessities. The result is that many of them often miss out on educational opportunities due to the lack of access to sanitary products."

"As the campaign moves across the country, school girls and women linked to various NGOs will receive dignity packs. Each dignity pack contains six pads, and each pad is reusable with a lifespan of four years. These reusable pads are safe for repeated usage, hygienic and environmentally friendly. The pack also includes an instruction manual as well as a pair of new underwear for each recipient," says Van Zyl.

Access to affordable hygiene products not only affects school girls, but also women at various stages of life, placing them at a disadvantage in terms mobility and productivity as women. FNB's support of the Dignity Drive is another way of extending the brand promise helpfulness by giving much needed support to women.

"In order to reach all the earmarked schools and NGOs, a network of FNB Volunteers across our branches will distribute the packs in their respective communities during the month of August. The Drive is spearheaded by a group of women in FNB, who responded to the challenge of women helping women. These volunteers raised the funds to donate the 1000 Dignity Packs, impacting the lives of a 1000 other woman as part of our celebration of Women's Month," concludes Van Zyl.

Build a fashionable share portfolio


13 August 2018 - Building a share portfolio is like building a capsule wardrobe. According to Susie Faux, the owner of a London boutique called "Wardrobe" a capsule wardrobe is a collection of a few essential items of clothing that don't go out of fashion, such as skirts, trousers, and coats, which can then be augmented with seasonal pieces.

Just like a capsule wardrobe, your share portfolio should contain a few statement pieces that can define your overall investment strategy. "Simply defined a share portfolio is a person's shareholdings/shares in one or two different companies. Your portfolio needs to be clean, versatile and contain the staple investments like the basics (TFSA, Cash), timeless statement pieces (Blue Chip stocks), grudge purchases (Midcap quality), and new long-term trends," says Chantal Marx, Head of Research, FNB Wealth and Investments.

She adds that "capsule wardrobe fashion principles can serve as a foundation to building your share portfolio quite simply." She outlines the following steps to building a great share portfolio:

  1. The biggest investment in your share portfolio will be the basics - Exchange Traded Funds like a Top 40 ETF, GOVI ETF, and SAPY ETF. Exchange traded funds are a low-cost option to own the entire market.
  2. Look at your timeless pieces like Blue Chip Stocks. These are large companies with a proven track record. The most important consideration here is to invest in 'what you know' and stay away where you don't understand the company or don't like it. For example - if you don't like shopping at a specific clothing retailer, you should not invest in it!
  3. Grudge purchases like the midcap quality space. Ongoing research is very important and the principals of choosing Blue Chip stocks remains.
  4. A small part of your portfolio can consist of mega trends or thematic investments - something for the future. For example, if you find that you no longer make travel arrangements through an agent. Consider digital agencies like Booking.com. If you think streaming is the future - why not consider an investment in Netflix.
  5. And then you have the FAD. Beware of the FAD. The easiest way to spot a FAD investment or scam is by asking yourself. Do I understand what it is? How does the underlying company make money? Am I being pushed into an investment? Must I recruit people to get my returns? If you don't understand it and have no clear direction on the answers - stay as far away as possible

"Just like pulling a classic capsule wardrobe together, ensure that your share portfolio defines your investment and personal money objectives. Rather invest in what you know, instead of the unknown - this will make or break your investment goals," concludes Marx.

What banks consider when assessing a home loan application


14 August 2018 - Most often, consumers rely on real estate agents or third parties to assist them with home loan applications. This results in them not fully understanding what banks consider when approving or declining an application..

Mpho Ramatong, FNB Home Loans Division Channel Head, says first time home buyers can significantly improve their chances of qualifying by familiarising themselves with the common pitfalls that often lead to home loan applications being unsuccessful:

  • Low credit score - this takes into account the historical management of your finances. Lenders want to know how well you pay your bills and creditors, amongst other financial commitments, to determine if you would be able to honour your monthly home loan instalments.

    "Before applying for a home loan, consider checking your credit profile and taking corrective measures if necessary. Consumers in South Africa have the right to get one free credit report, once a year, from a registered credit bureau," advises Ramatong.

  • Affordability - in some instances consumers opt for properties that far outweigh what they can reasonably afford with their monthly income.

    Moreover, banks want assurance that you would still be able to afford the home loan instalments once expenses have been deducted from your monthly income.

    "If affordability is an issue, a higher deposit, joint bond application with a spouse or family member, or property of a lower value should be considered," says Ramatong.

    Getting a pre-approval ahead of a home loan application can help consumers determine if they qualify and whether a deposit will be required.
  • Unsatisfactory property evaluation - it is essential that the bank assesses the property you intend to buy to unsure it is in good condition and that the purchase is not far off from its market value.

  • Unstable monthly income - when applying for a home loan you will be required to produce your latest payslip and three months' bank statement as lenders need assurance that you receive regular income..

    Self-employed individuals are required to produce a minimum of six months' worth of financial records or bank statements.
  • Incorrect declaration of expenses - in most cases applications get declined because expenses might have been duplicated.

    For example: if you have a credit card that you might be using to fill up for petrol and for groceries, you need not include the groceries portion and petrol expenses in your expense.

"Although every application is unique and assessed on its own merits, taking time to understand what lenders consider when assessing an application will go a long way to helping you purchase your first house," concludes Ramatong.

The rule of thumb for emergency savings


15 August 2018 - The concept of an emergency savings is simply a stash of money set aside to help you manage those surprise expenses that may crop up. These emergency funds could provide you with an avenue to help you steer away from incurring unnecessary expenses which could lead you to debt.

"Increasingly, we find that we are over-burdened with surprise and unexpected expenses which can be frustrating. However, while these are not planned for they sometimes happen on the spur of the moment," says Ester Ochse, FNB Wealth and Investments, Product Specialist. "Building and maintaining an emergency savings fund can help you get out of the debt trap and gives you an opportunity to meet unexpected financial obligations like repairing a broken window, doctors or even education costs."

She adds that, "It's never too late to start saving. You don't have to put a lumpsum of cash away each month; rather start small and save." Rule of thumb is to pay yourself first and put away between 10% and 20% of your salary monthly. This step is crucial in the saving process. Ultimately savings needs to begin with you and will form part of your overall savings strategy.

Prioritize your expenses and identify your goals so you know what to focus on. Savings can be overwhelming if not managed correctly. "It is important to have financial goals to drive the habit of saving. Both short and long-term goals are important in ensuring that you meet your objectives for emergency funds. It is important to list the fixed expenses first, then variable expenses. Non-essential costs should be included last and only when there is enough money to pay for them. List your income, for example salaries or wages, income received from investments and maintenance.

These goals will help you manage your finances and at the same time ensure that you have enough for all your expenses. Ensure that you know how much you want to save or contribute each month.

Look at your budget from last year and ascertain what you need to save for. Factor in the emergency savings fund. If you haven't dipped into your savings fund, let it stand and continue adding to it.

"An emergency savings fund is not a vehicle for your luxury purchases. Grow and maintain your savings fund - it will definitely help you in the future," concludes Ochse.

How to improve your credit score


16 August 2018 - Access to credit can be a cornerstone to personal growth and many consumers can relate to the excitement and relief of qualifying for credit to buy a house, a car or to cover education costs and medical emergencies.

Unfortunately, statistics also indicate that many consumers also struggle to manage credit.

Nico van Staden, Head of Consumer Credit at FNB says while many factors are considered to determine the outcome of a credit application, one of the key factors that credit providers consider is a credit score.

"The easiest way to understand a credit score is to view it as a report card for credit behaviour. When applying for credit, a credit provider will ask you for permission to access your credit profile to better assess your application. Credit providers will also use such information to determine the interest you will potentially pay on your loan," he says.

Van Staden gives useful tips on how consumers can maintain their credit worthiness and a good credit score:

  • Know your credit score - The starting point is to first understand your individual credit score, regardless of whether you've been credit active or not. In South Africa, there are several credit bureaus that consumers can use to access a free credit report at least once a year.
  • Be honest about your financial position - While financial institutions have to perform affordability assessments for every credit application, consumers also have a duty to provide truthful information about their ability to afford credit. It's important to understand your monthly income and expenditure. Will you be able to service your debt if you have a sudden decrease in income or increase in expenses?
  • Honour your credit agreements - In the credit application process, past behaviour is very important. Avoid going into arrears by skipping payments because this will be reported to the credit bureau and will negatively impact your credit score. This will impair your ability to qualify for future credit. If you are having trouble meeting your current obligations, contact your credit provider and try to work out a repayment plan. Stick to the plan diligently and your score will improve over time.
  • Understand the different types of credit - A credit card, overdraft and a personal loan are very different facilities and the interest you pay on each can be vastly different. Use your banking relationship to understand the use and how best to manage each facility.

"Consumers should utilise every opportunity to better manage their finances. At FNB, we empower our customers with tools such as nav>> Money on our banking app to help them manage their money through a secure digital platform. We've also invested heavily to digitise access to credit while maintaining stringent processes to safeguard the financial wellness of customers," concludes van Staden.

Maintain a disciplined savings mindset


20 August 2018 - During National Savings Month consumers were encouraged to pick up conversations around saving and investments; with the aim of saving more, spending less and creating awareness around effective money management strategies.

While this laid the foundations to help build a cohesive savings culture in South Africa, consumers are still encouraged to maintain this savings mindset. "A savings mindset is an ongoing process and if executed correctly will help you and your family in the future," says Ilse Smuts, Head of Marketing, FNB Savings and Cash Investments.

She adds that, "The volatile economy has exhausted household expenditure and has forced consumers to re-evaluate their spending habits and look for simple saving methods."

Emphasis needs to be placed on creating a saving strategy that is aligned to your life-goals, needs and wants. Some will save towards wedding related expenses, anniversaries, significant birthday's, local or international holidays or home renovations, others will open a Savings Account in case of emergency, while others will save to be able to spoil themselves with, for example a branded leather handbag or designer shoes. "Whatever your savings goal is, ensure that you start saving sooner rather than later." Smuts outlines 5 core saving principles which will help you in building your savings strategy:

  • Live within your means: - Don't overspend on things that you don't need. Look at your current situation and assess what is important and what is unnecessary in your life. "Over extending ourselves with unnecessary debt just adds strain to relationships and is not sustainable in the long-term."
  • Have a goal-based mindset: - Your monthly savings goals should speak to your household and family needs. Determine your short, medium or long-term goals as this will help eliminate wasteful expenditure and help you identify saving avenues.
  • Prioritise your budgets: - A well-managed budget will help you keep track of your expenses and your savings. Ensure that this budget is kept up-to-date and includes all your household expenses.
  • Pay yourself first: - Key to enjoying your money is to pay yourself first. Allocate a certain amount to yourself - which you can use in case of emergency, to spoil yourself or to save towards a specific goal.
  • Have a Savings Account that you will use - Build your savings with a savings account or a cash investment account that will help you save and accumulate wealth over time.

Discipline and commitment is needed to ensure that you stick to your savings goals. "Whether big or small, your initial saving steps will make a difference and help in building a saving culture in South Africa," concludes Smuts.

FNB offers a range of savings and cash investment accounts where you will not only benefit from attractive interest rates, but your capital and quoted returns are fully guaranteed, so you can trust that your hard-earned money is kept safe and growing.

FNB produces excellent results with double digit growth


Strongly propelled by its digital strategy

FNB Financial Highlights:

  • Normalised earnings up by 16%
  • Profit before tax in the domestic franchise grew 16%
  • Customer numbers top 8.15 million
  • Excellent traction in Digital platform journey
  • Upsell and cross-sell strategies again effective
  • Strong advances growth in second half, coupled with outstanding deposit acquisition.
  • NIR up by 10% and costs well contained

Johannesburg, 6 September 2018 - FNB produced excellent results against the backdrop of a tough economy, building on its consistent strategy of cross-sell of products and services into its existing customer base. New to bank sales reached record levels in our key channels with customer numbers now above 8.15 million.

"Our digital journey, particularly FNB App, usage again experienced excellent growth with financial transactions up 65%. We were also delighted with progress in digital fulfilment where significant strides were made on both onboarding and leveraging cross-sell opportunities, and the bank will continue to invest in future technology projects," says Jacques Celliers, FNB CEO.

The cash migration strategy continues with activities moving from branch to ADT and cash centre to SmartBox technology. The branch capacity has been successfully leveraged producing record sales for the period.

The FNB Digital strategy has seen:

  • App volumes climb 65%
  • Digital loan origination initiated
  • Lifestyle orientated solutions (branded NAV), now available on App
  • Invest, Connect and Insure products are all integrated onto the platform

Contributions from Retail and Commercial banking saw domestic profitability lift by 16% while the effort in creating scale in Insurance and Investment offerings show potential for growth opportunities.

The Retail segment profits climbed by 18% with Commercial also up a healthy 12%. Retail saw excellent contributions from all client facing businesses with card, loans, residential mortgages, transactional and cash investments contributing double digit growth. Lending businesses benefitted from targeted advances growth and an improved ability to deliver their products through our digital platform. Advances growth was largely contained to the existing client base and we expect this trend to continue into the new year. Bad debt performance was again a key focus area. Excellent collections and targeted advances growth resulted in impairments drifting lower in the domestic portfolio.

Commercial growth was buoyed by gains made in the key transactional business coupled with advances growth across targeted portfolios, particularly within property and agriculture.

Deposit growth remained robust and FNB is now the leading retail deposit taker in the domestic market. This growth has come from both product and channel innovation which facilitates ease of use supported by compelling rates. Commercial deposits were again up 7% which is an excellent result given the existing high base.

FNB transactional volumes in debit card and credit card remained industry leading with total transaction volumes up 10% in the period.

FNB Rest of Africa profits were lower in the face of tough macro-economic conditions.

Our client centric approach has produced dividends within FNB across our key segments in both Retail and Business banking environments. Client product take-up, has improved to 2.97 from 2.83 at June 2017.

Insurance activities again produced excellent revenue growth with the policy numbers reaching 3.7 million and recurring premiums (APE) growing 35%.

In terms of our investment in both community and small business, we were delighted to see eWallet send values grow to over R21 billion with almost 900,000 monthly senders using the facility. On the small business front, unsecured facilities to the SME's grew to R17bn up 13% during the period.

"We are grateful to our stakeholders, particularly our staff who have again delivered on our helpfulness promise. The year ahead will see increased competition and we will further leverage our digital and client centric strategies to enable class leading growth," concludes Mr Celliers.

Common myths about hospital cash plans


11 July 2018: Despite the increasing popularity of hospital cash plans (also known as health cash plans) as supplementary cover for non-medical expenses, some consumers are still not maximising this benefit due to a few misconceptions.

Lee Bromfield, CEO of FNB Life, says when used appropriately, a health cash plan can go a long way to help consumers cover daily living costs and other expenses that could be incurred while being hospitalised.

He demystifies some of the common myths about health cash plans:

  • It's affordable medical aid cover - a health cash plan is not a substitute for a medical scheme and the cover is not the same. It provides a cash payout for non-medical expenses that are incurred from being hospitalised. As a result, you can still choose to have a medical aid plan even if you have a health cash plan.
  • Funds can only be used for hospital expenses - consumers are free to choose how they want to use the cash. For instance, you can either use it for non - medical expenses or to supplement your income for the period that you cannot work.
  • The payout is based on total hospital expenses incurred - the total pay-out is guaranteed based on the time spent in hospital for consumers who are eligible to get a benefit. It is by no means linked to the expenses charged by the hospital.
  • The benefits of a health cash plan are limited to cash only - FNB Life adds free benefits to its health cash plans that are not limited to money. Customers have access to qualified nursing advice via a free 24/7 telephonic service in any South African language. This provides customers with peace of mind, should they be anxious about any medical query.
  • A medical check-up is required to get cover - no medical assessments are required when taking out a health cash plan. However, it is a pre-requisite to inform your insurer if you have a pre-existing medical condition, such as a heart condition, diabetes and cancer etc.

Your insurer will then advise on how it impacts your policy or whether there will be a waiting period imposed.

"Although licensed insurers abide by similar guiding principles, the cover they provide is not always the same. Therefore, it is essential for consumers not to base their decisions on hearsay, but rather what is specified on their individual policy documents.

If you are unsure about the terms of your policy, seek guidance from your insurer or an expert to avoid making mistakes," concludes Bromfield.

Do not underestimate the cost of private schooling


18 July 2018: Affluent individuals and families who prefer to send their kids to private schools in the country should not underestimate the importance of planning ahead to cover school fees.

"For an average household with two kids in school, annual tuition fees, including boarding could easily mount up to R540 000, considering that the most expensive private school in the country currently costs over R270 000 a year per pupil," says Eric Enslin, CEO of FNB Private Wealth and RMB Private Bank.

He says some families often overlook the fact that school fees could actually be a five to 13-year commitment, which can significantly place pressure on household cash flow if not properly planned for.

Furthermore, the fees become more expensive every year as they often increase beyond the annual inflation rate.

Enslin advises families to think long-term and start making provision for private schooling as early as possible.

"Even if the family does have some cash available, it would be viable to invest it and use the returns to lower the overall cost of private schooling," says Enslin.

Regardless of the age of the kids, there are a variety of investment vehicles which could suite families:

  • Money maximiser account - enables you to have immediate access to your funds, while earning a money market related rate. You can also make additional deposits at any time.
  • Inflation linked deposits - offer you an investment where your returns are linked to inflation, ensuring your investment keeps up with the rising cost of living.
  • Investment property - you have an option to invest in property which is likely to appreciate in value while enabling you to use rental income to fund tuition fees on a monthly basis.
  • Equities - investing in the stock market or investment funds that offer consistent growth over the long-term is also an option for parents.
  • FNB Horizon Series - has been designed to make it exceptionally simple for customers to choose unit trust funds that best suit their needs. It takes the complexity out of investing and offers investors superior fund solutions, with exposure to inflation-beating returns over different time horizons

The philosophy behind these funds is to target the most optimal asset allocation for a specific time horizon. This means that you get optimal returns for your specified time horizon.

"There isn't a one size fits all approach when deciding on the best vehicle to save for private school fees as every family's financial affairs differ. It is therefore, essential to consult your banks relationship manager or advisor to identify the best investment plan, which takes into account a variety of factors impacting the family.

Making provision for educational expenses can give families peace of mind knowing that they won't find themselves in a situation where they have to make financial sacrifices in order to give their kids the best education possible," concludes Enslin.

Offshore investing, a valuable tool for all


25 July 2018: Conversations about investing offshore is likely to intensify as Savings Month opens discussions around the various aspects of saving and investing. The offshore investment process is often seen as unwieldy and complicated but this assumption is far from true.

Offshore investing is, at its core, a practical way to achieve diversification in your investment portfolio. "Diversification, in turn, is a big word for a relatively simple concept: Spread your wealth and your hard-earned resources between different investment options. Or, don't put all your eggs in one basket. At its core, this notion assumes that various asset classes - like cash, property or stocks - vary in nature and will behave and perform differently over a period. So, when one is on a high, another might be going through the doldrums. But, together, they'll even each other out. This reduces your risk," explains Chantal Robertson, Head: Global Wealth Solutions at FNB Wealth and Investments.

It is no longer sufficient to diversify among different asset classes, especially if they are all based in the same country and are subject to the same economic, political and social pressures. "Today's investor is a mobile global citizen who is unrestricted by borders and boundaries, and wired consistently in to a world of potential opportunities," says Robertson

Customers with different needs have vested interests in various offshore investing opportunities. These days investing offshore is no longer the preserve of the super-rich, stresses Robertson. "Global citizens come in all shapes and forms, from the young professional saving for his first overseas holiday, to a corporate executive establishing an offshore account to cover tuition fees should her children wish to attend university abroad, to an experienced trader looking for access to the global exchanges, to a wealthy family using existing allowances to accumulate significant value offshore and structure it appropriately. "

Resident individuals older than 18, for example, can take R1 million offshore annually as a Single Discretionary Allowance (these funds can be used for travel, gifting or foreign investment and no tax clearance is needed), or they can obtain tax clearance to take R10 million offshore under the annual Foreign Investment Allowance. Wealthier individuals can apply to the SA Revenue Service and SA Reserve Bank to take more than R10 million offshore in terms of a special dispensation.

Structuring advice is particularly important when you are looking to invest offshore, explains Robertson, and is another requirement of the global investor. As the world gets smaller and investment options burgeon, it's vital to have a local bank with an offshore footprint on hand to highlight the options on the table and enable offshore investing with ease.

"Being a global citizen is no longer a question, but it is a different journey for each one of us. The uncertainty in local and international markets, and the volatility brought about by issues such as trade wars, political shifts and economic trends like globalisation and generational shifts, are prime reasons why South African investors are looking to spread their risk by investing offshore," concludes Robertson.

FNB's Global Wealth Solutions offering has been established to guide clients through offshore investing by offering an end-to-end cross-border solution for the first-time investor as well as those who are more familiar with the topic.

Efficiency key to overcoming tough economic conditions


20 September 2018: Following the South African Reserve Bank's decision earlier today to keep interest rates at their previous level, FNB will maintain its prime lending rate at 10% and review its position following the next SARB MPC meeting in November.

FNB CEO Jacques Celliers says: "The Reserve Bank presents us with wide-ranging insights into current and predicted economic conditions. After two quarters of contraction in the economy, we believe that this tough cycle is an opportunity to improve efficiency in order to position South Africa for a better growth path. For consumers and small businesses, this is an opportunity to review the management of their finances to align with current economic reality. We also encourage our customers to maximise the value of our money management solutions and digital banking capabilities which can help them save costs."

Mamello Matikinca, FNB Chief Economist says: "The SARB's decision to keep the repo rate steady at 6.5% was in line with our and consensus expectations. The downside surprise in the August inflation print (4.9% y/y) showed that demand side inflation remains relatively well contained, with almost all the pressure coming from a weaker currency and higher oil price. The Reserve Bank, however, continues to see upside risks to the inflation outlook, particularly as escalating tensions around the US imposition of trade tariffs hold the potential to precipitate further Emerging Market (EM) currency weakness. While the central bank's primary mandate is price stability, they remain mindful of the weak domestic growth environment, and as such, kept rates unchanged in the hope that doing so can assist a very modest growth recovery in the second half of 2018. Nevertheless, as US monetary policy normalisation continues, we expect the MPC to begin a gradual rate hiking cycle at the November meeting."
In its recent full-year results, FNB produced excellent results against the backdrop of a tough economy, building on its consistent strategy of cross-sell of products and services into its existing customer base. The bank reported a sharp rise in the usage of its digital channels, with the FNB App recording a 65% rise in transactional volumes.

FNB Life outpaces competitors in growth


01 October 2018: Swiss Re's Individual Risk Market New Business Volume Survey 2018, has identified FNB Life as the fastest growing life insurer in South Africa. The survey showed that FNB Life achieved the highest growth in market share by sum insured for the 2017 calendar year.

In addition to leading overall growth, FNB Life achieved the highest growth for the three main mortality products: risk only, credit life and funeral insurance. FNB Life, which currently has over 3 million policies in its book, also has the number one market share for new risk products in the banks and digital direct channels.

Lee Bromfield, CEO of FNB Life, says the business' consistent growth coupled with its recent contribution to FNB's double digit earnings for the 12 months to June 2018, is consistent with the survey findings. Insurance revenue increased by 6% (10% on a normalised basis - excluding once off dividend income), benefiting from strong volume growth of 20%, and 8% in funeral and credit life policies respectively, which further resulted in annual premium incomes increasing by 35% year-on-year.

"Our success is largely attributable to our ability to understand and innovate across the entire insurance value chain. We have followed this strategy from onset and across all our products. Our approach is to leverage platforms and enablers across the bank to become the most innovative and digital insurance provider in the market," says Bromfield.

The primary focus has been on digitisation and taking a multi-channel approach to insurance by leveraging the banking channels to enable scale.

FNB Life has also innovated the claims process to remove angst by integrating with insurance data aggregators and home affairs to enable claims straight-through-processing and insurance initiated claims to better service its customers.

"The approach of value chain innovation and our focus on digitisation has enabled FNB Life to gain great presence on the international stage, where we won the internationally acclaimed Global EFMA-Accenture Innovation awards in 2016 for digitising funeral cover," says Bromfield.

In 2018, FNB Life was also selected from hundreds of submissions as a leading innovator in the BAI Global Innovation Awards.

The insurance administrator was further selected as finalists for Robo-Advice Tool for Life Insurance in the category of Best Application of Data Analytics, AI and Machine Learning in a Product or Service. This global acknowledgement is a substantial achievement for FNB Life.

120 000 ID cards and passports issued via FNB branches


25 September 2018: - First National Bank (FNB) has issued over 120 000 Smart ID cards and passports through its select branches since the start of the partnership with the Department of Home Affairs.

Lee-Anne van Zyl, CEO of FNB Points of Presence says to date, FNB's dedicated branches have collectively processed and issued 63 533 Smart ID cards and 56 738 passports to the bank's customers

"We are delighted to be able to offer this important service to our customers in partnership with the Department of Home Affairs. The most convenient part is that the booking process is facilitated through Home Affairs' online portal, before a customer visits the branch," she says.

"The partnership is in line with our approach of continuous innovation to provide services that play a playing a meaningful role in society. In addition, identification is an essential part of banking, therefore, this service becomes much more essential in South Africa's quest to broaden financial inclusion," adds van Zyl.

Since the beginning of this year, FNB has announced several industry leading solutions including eWallet eXtra mobile bank account, its mini cashless ATM which accepts biometric identification, as well as functionality that allows consumers and businesses to open a bank account with a selfie on the bank's App.

"Digital migration is core to our business and we are driving this priority across all our channels including our branch network. Over the years, we have been optimising our branch infrastructure to properly service the needs of our customers through a combination of self-service and assisted service," concludes van Zyl.

FNB holds strongest reputation in South African banking sector


25 September 2018: - For a third consecutive year, FNB has claimed the prestigious title of strongest reputation in the 2018 RepTrak® Pulse Survey. Conducted by the Reputation Institute (RI), the survey provides a specialised measurement of how stakeholders, namely: the public, investors and employees perceive major brands.

The survey measures key pillars that are essential for brands to gain the support and trust of consumers, and these include: Products and Services, Governance, Workplace, Citizenship, Leadership, Innovation and Performance. FNB performed better than the industry average in all dimensions measured, with a significant industry lead in Innovation. The survey also acknowledged the bank for being seen to be communicating more often than its competitors.

"The accolade highlights the strides we continue to make to become a trusted money manager. At the heart of this evolution is our investment in big data and artificial intelligence capabilities to enable ease of access to banking services. We firmly embrace the challenge of being held to a higher standard and through innovation, we believe that we are better equipped to service our customers' range of needs," says Virginia Magapatona, FNB Corporate Affairs Executive.

Over the years, FNB has consistently pioneered innovation in the banking sector as an integrated financial services provider. The bank continues to assert its leader status through the introduction of banking solutions to service a range of customer needs. FNB launched its eWallet eXtra mobile bank account, introduced functionality to open a personal or business bank account with a selfie on the FNB App, and also revealed a mini ATM which accepts biometric authentication.

"Our customer centric digital execution is primarily enabled by our big data capabilities and we are proud to be able to provide useful services to both individuals and business customers. In addition, we also believe that active involvement in society is a contributor to becoming a trusted brand and partner by our stakeholders," she adds.

"To this end, we have formed partnerships with institutions such as the Department of Home Affairs to process ID cards and passports at our branches. We also provide SMEs a platform to register their businesses with the CIPC and help with capacity building across municipalities through targeted interventions," concludes Magapatona.

Collaboration key to solving SA housing challenge


19 September 2018: - In a bid to tackle the affordable housing challenge, FNB is actively collaborating with various stakeholders to create more opportunities for first-time buyers to own their dream homes.

Consequently, there has been a significant increase in the number of new FNB home loans generated through employer backed partnerships, over the past two years.

Mpho Ramatong, FNB Home Finance Division Channel Head: Housing Schemes, says these important partnerships, commonly known as 'Housing Schemes' are aimed at making home ownership a reality for more consumers in South Africa through subsidies and other benefits such as special terms on loans and rental assistance programs.

"Employer backed-partnerships have created an environment where corporates and lenders can work together to reach more consumers and provide them with sustainable access to homes. As a result, our current business model and solutions enable us to offer first time home buyers, including those who would not have qualified under normal circumstances, 100% bonds with no deposit required," adds Ramatong.

Furthermore, the agreements offer flexibility as they can be adapted for a particular organisations' needs which creates more room for innovative solutions that aren't constrained by traditional lending models which have many limitations.

First time buyers who earn a household income between R3 501 and R15 000 per month also qualify for the Finance Linked Individual Subsidy Programme (FLISP) from the government which offers qualifying consumers subsidies ranging between R20 000 to R87 000 once off, provided that they haven't benefitted from a government subsidy before.

In addition to these benefits FNB further offers first-time home owners compulsory education on all aspects of home ownership.

FNB's Home Owners programme is offered in four convenient formats namely:

  • 60% eLearning is completed through online training.
  • 35% of the training consist of a self-study pack (DVD, booklet and paper assessment)
  • 1% is completed through classroom training. This used to be the dominant form of training, but has reduced since the implementation of eLearning.
  • 4% of the training covers all aspects of the home loan including:
    • Planning and what to expect in your home. This includes a quick introduction in rates and utility bills, maintenance and contingency planning etc.
    • The loan agreement
    • Interest rates (fixed vs variable and related consideration)
    • What happens in the event of default

"Given the massive housing backlog in the country, it has never been more important for various stakeholders to work together to identify sustainable solutions to provide affordable quality housing to South African citizens," concludes Ramatong.

Tips on stretching your retirement savings


29 August 2018: - When you finally reach retirement age, you need to be in a position where you can afford to maintain a similar lifestyle which you have been accustomed to prior to retirement. The only way to achieve this is making sure you start planning and saving for retirement much earlier.

Preenay Sathu, at FNB Wealth and Investments says "more often, the primary goal of retirees is to live comfortably knowing that their future is financially secured. However, the mistake that people often make is underestimating the continuous rise of the cost of living."

"Retirement should not be a time to worry about finances, unfortunately most retirees realise when they reach this stage of their lives that they didn"t save enough," adds Sathu.

Sathu shares tips on how to stretch your retirement savings

Financial discipline: Even at retirement, financial prudence remains important so it"s important to continue making financially sensible decisions because as a retiree you may only have one income. Financial decision must be diligently evaluated to avoid making costly financial mistakes as you may not have enough time to recover the losses should things not go your way.

Evaluate costs: Look at your current household expenses and identify areas where you can cut costs. These expenses can be filtered down based on your needs and wants. The key is to prioritise things that matter the most such as insurance and medical care.

Budget: This is a very important element, it allows you to plan your finances and also give you a view of what you can and cannot afford to ensure that you don"t outlive your retirement savings. Therefore, you need to stick to your monthly budget and regularly review if you are living within your means.

Monitor investments: Environmental shifts, inflationary changes are some of the things you need to consider that can have a direct impact on your investments. Therefore, it is advisable to enlist the service of a financial advisor who will help you monitor and ensure that your savings are safe from market fluctuations.

Use discounts/vouchers: Shop smart and take advantage of discounts offered by retail stores. The savings might seem small but they may help you save a substantial amount over the long term. Also take advantage of rewards programmes. For example, FNB rewards customers for certain transactions through its eBucks rewards programme. The eBucks can be used to purchase grocery, petrol at selected partners nationwide.

"Good financial habits don"t stop when you go on retirement, it is a lifetime discipline that should be practiced in order for you to have a financially balanced lifestyle," concludes Sathu.

Benefits of offshore investing in wealth planning


04 September 2018: - Offshore investing is commonly incorrectly associated with negative sentiment from investors who have a lack of confidence in the economic circumstances of a country.

"While it can't be argued that offshore investing offers affluent individuals and families some form of protection against macroeconomic risks, this is certainly not the only reason for its prominence amongst investors," says Elize Giese, Regional Head for FNB Private Wealth.

"From a wealth building perspective, offshore investing encompasses the diversification of an investment portfolio by affording it exposure to opportunities that are currently not available in the country in which the investor resides," says Giese.

Consequently, individuals who intend building a long-term portfolio should consider international exposure as part of a sustainable investment strategy.

Giese unpacks some of the key benefits of investing offshore:

  • Hedging against currency risks - given the high volatility rate of global currencies, offshore investing is used as a buffer against the volatility of a country's currency over longer periods of time.

    For investors in South Africa this is often an attractive route given the depreciation of the Rand relative to the performance of offshore currencies.

  • Diversifying sovereign exposure - sovereign exposure which could result from a country failing or experiencing difficulties in honouring its debt obligations can have unintended consequences on financial investments within a country.

    Diversifying through offshore investments is one strategy for protecting an investment portfolio from being entirely exposed to such risks.

  • Children studying abroad - with families considering sending their children to study abroad, having exposure to a range of investments offshore can pay off in the long term.

  • Traveling abroad - individuals who work or frequently travel overseas with their families for holiday purposes continue to benefit from international exposure as part of their investments.

    The South African government currently allows individuals to invest up to R10 million offshore as part of their Offshore Investment Allowance. However, this is subject to tax clearance.

  • Shares - the ability to purchase and own shares in a variety of stock exchanges globally gives investors and families exposure to companies that have growth potential which far outweighs what is available locally.

    "With international trends continuing to indicate that a portion of wealth is better invested in a foreign jurisdiction, affluent individuals and their families should maximise on this opportunity while being cognisant of the risks of international investing," concludes Giese.

Tips for insuring your family art collection


10 September 2018: - As more households begin to appreciate the value of art as an alternative form of investment, getting to grips with art insurance should form an integral part of a collection strategy.

Elizabeth Mountjoy, Private Wealth Manager at FNB Insurance Brokers, says art is a unique item to insure as it is irreplaceable and appreciates in value. Although art investment was previously limited to individuals wanting to secure their family heirlooms, it has since moved to include individuals and corporates looking to increase their wealth.

"This is due to the immense effort and contribution of the arts and culture industry, as well as platforms such as the FNB Joburg and RMB Turbine Art Fairs, to celebrate talent, while raising awareness and bringing art to a broader market of consumers and corporates," adds Mountjoy.

She unpacks important factors that families and individuals should consider when insuring art:

  • Defective Title Insurance - this form of insurance protects the buyer when a painting must be surrendered back due to the seller not having a legal right to sell it. For example, if the painting was stolen or looted, amongst other factors.

  • Property insurance - covers you for standard insurance perils such as fire, theft and accidental damage.

  • Cover to compensate for loss in value, following the restoration of the piece due to a claim (replacement cost)

    .
  • ransit cover - this protects you as you move the art from place of purchase to the place of residence.
  • Coverage for your art whilst in museums or Art Fairs.

Ms. Mountjoy says, most art insurance claims relate to fire, water or accidental damage, however theft is a reality and the chances of art being recovered are less than 10%. It is, therefore, essential to choose the right form of insurance that can attend to your claim by providing services such as art restoration.

Moreover, having an extensive art collection requires that a broker places it with the right insurance company that understands art and the pieces requiring insurance. They will be able to provide advice on the best options to ensure full coverage always.

"Before obtaining cover for your art collection ensure you have all the valid documentation such as receipts, photos and the record of ownership, known as provenance, if the piece has had many owners.

Art appreciates in value and requires valuations to be updated at least once a year. Some insurance companies offer this service to ensure that pieces are appraised correctly," concludes Mountjoy.

What students should do with their holiday pay


05 September 2018: - Working over the holidays is a growing trend among both scholars and students. Many students opt to work over the holidays to improve their financial situation, or they need the extra pocket money and they also benefit from on-the job experience. Either way, this extra money, if saved or invested correctly, can help them financially in the future.

"It's often a good idea to find temporary employment while completing your studies. It builds character and will help you when you eventually start working. Depending on your current situation and goals, the money earned can be used to finance your studies or help pay off your student loan, fund a holiday or even go towards your longer-term goals like deposits for cars or a first house," says Himal Parbhoo, CEO FNB Cash Investments.

"We encourage consumers to start saving from a young age as this mind-set will help later in life and help with your future goals.

Parbhoo suggests the following basic tips to help you save your hard-earned cash:

  • Set your savings goal: Deciding to work over the holiday period is a great step in managing and growing your financial independence. This money could be used for a holiday at the end of the year, assist with expenses, accommodation, transport or could be saved for long-term goals like your retirement or an investment vehicle. Whatever your goal, ensure that you stick to your savings strategy and not default at any stage.

  • Open a savings or an investment account: It's a good idea to put your money earned in a savings or an investment account. Look at account options and the interest rates to ensure that this account works best for your needs and savings goals.
  • Cut unnecessary expenses: Review your monthly spending by listing all your expenses in a budget and identify where you can cut expenses that you don't need and rather focus on the things that matter. Less spending means more savings that you can put towards your pocket.
  • Set monthly targets: This should be an ongoing process with the aim of settling small debt and expenses as soon as you can.

"Working during your holidays can help you save more for your goals. What's most important is to start planning early and ensure that your savings plan is adhered to," concludes Parbhoo.

FNB offers a range of savings or cash investment accounts where you will not only benefit from attractive interest rates, but your capital and quoted returns are fully guaranteed, meaning there is no risk of losing your hard-earned money.

Choosing the right funeral cover amount


27 August 2018: - Many consumers who take out funeral cover often struggle to choose the appropriate cover amount for funeral expenses.

Nthabiseng Sethabela-Makoeng, Product Manager at FNB Life says, when deciding on the correct cover amount, it is essential to abide by the most basic principle of funeral insurance, which is to ensure that family members or beneficiaries have the financial means to provide the deceased with a dignified send off in the unfortunate event of death.

"Because every family is unique, the concept of a dignified funeral often differs as consumers have individual preferences and standards they adhere to. Therefore, the stipulated funeral cover amount should meet the expectations of the family without additional funds having to be raised," says Sethabela-Makoeng.

She points out three factors that consumers should consider when choosing the correct funeral cover amount:

  • Premium prices - in some instances, consumers only consider the monthly premium that they will pay at the end of the month.

    "Although paying a lower premium may save you money in the interim, the corresponding cover amount may not be adequate. When a death in the family occurs, it may set back beneficiaries financially as they would have to provide for the shortfall from their own pockets," cautions Sethabela-Makoeng.

  • Taking inflation into account - when taking out cover it is essential to take a long-term view which considers the impact of inflation.

    As a starting point, consider taking a five-year view and adjusting the cover amount accordingly. This is more practical than reviewing and adjusting your cover amount on a yearly basis.
  • Post funeral expenses - many consumers overlook the importance of catering for post event funeral expenses like a tombstone. For some families, the cost of an unveiling ceremony event can be as expensive as the funeral.

    As a result, consumers who don't consider post funeral expenses when choosing the cover amount may find themselves having to borrow money to cover additional costs.

"Although death is not a common dinner table discussion, it is essential for policy holders to discuss the funeral cover amount with their family members or beneficiaries to determine what constitutes a dignified funeral and the cost thereof. This will help to ensure that the correct funeral cover amount has been selected," concludes Sethabela-Makoeng.

Consumers process R105 billion worth of payments on FNB digital channels


27 September 2018: In the 12 months to June 2018, South African consumers have processed approximately R105 billion worth of payments through FNB's digital channels, which include its App, Online and Cellphone Banking.

The bank says consumers have made an average of R8.7 billion worth of digital payments each month over the period.

Raj Makanjee, CEO of FNB Retail says, "An efficient digital payments ecosystem is fundamental to building a compelling digital banking offering. We believe that our digital banking offering provides superior value when you look at cost, convenience, security and incentives such as rewards. This is enabled through our adoption and integration of cutting edge technology to facilitate and safeguard transactions. A key security feature such as Smart In-Contact on our App is an example of functionality which provides customers more control and peace of mind."

FNB recently revealed that its overall digital migration journey saw a significant boost in the previous financial year with payments on its App growing by 63%. Over the years, the bank's eBucks rewards programme has also been a key incentive for customers to migrate to its digital banking platforms. The bank has disbursed more than R10 billion worth of eBucks over the course of the programme.

"We are excited by future opportunities to consistently improve the delivery of Transactional, Lending, Investments and Insurance solutions to our business. On payments specifically, we are increasingly offering more support to merchants to adequately support the payments evolution that's currently being pioneered by consumers," he adds.

"We understand that our success and relevance depends on placing customers at the centre of everything we do. In line with the realities that characterise our operating context, we continue to invest significantly in our people, systems and infrastructure for better customer experience," concludes Makanjee.

Post Fourth Industrial Revolution Economy


27 August 2018: The world around us is changing rapidly and almost every single business model is impacted by the new digital economy. The meteoric rise of the big tech firms has established them as the dominant new business models in the post fourth industrial revolution (4IR) economy. Apple, Amazon, Alphabet (Google), Microsoft, Facebook and Tencent are the six largest listed companies by market capitalisation ranging (in descending order) from 0.9 trillion USD to 0.5 trillion USD. While they have very different niches, they have remarkable similarities.

Each one was founded and run by a computer scientist/programmer or electronic/computer engineer (some dropped out of college) from start-up phase, without generational wealth (inheritance) and introduced aggressive technological innovations offering significant benefit to hundreds of millions if not billions of end-customers directly via digital means. Two of them (Apple and Microsoft) hail from the third industrial revolution (the digital age of computers and the internet), but the other four were started between the mid 90's and mid 00's.

The defining characteristic of the winners in the post 4IR economy is the ability to leverage data and analytics to deliver an unprecedented level of customer centricity in their solutions. This ability is commonly referred to as Artificial Intelligence, perhaps because some of the technologies like speech recognition and natural language processing give an appearance of mimicking human capabilities. Certainly, search optimisation (Google), customer content and preference modelling (Amazon, FaceBook) and data centre/cloud computing (Amazon, Microsoft) are also key capabilities that helped create and sustain these behemoths.

Another inescapable factor is size or the 'network effect'. This basically means firms are not just big because they are 'good' or capable, but are 'better' because they are big. The 3IR already introduced business models that scale at extremely low cost (e.g. internet-based models). The 4IR has taken it to the next level where having a critical mass of consumers is a requirement (e.g. you won't use social media if your friends or colleagues are not on it) and the ability to develop sophisticated machine learning models improves as more data becomes available. This point is often overlooked in understanding the success of the big tech firms and conversely, over-estimating the ability of start-ups to challenge them.

If this is the global picture, the question is what does this mean in the South African context. A good starting point may be to examine the largest companies with a primary listing on the JSE. This list includes Naspers, FirstRand, Standard Bank, Sasol, Vodacom and MTN, ranging from R1.5 trillion to R0.2 trillion in market capitalisation. Note this list specifically excludes global companies like AB InBev, BAT, Glencore, etc. with foreign headquarters and foreign primary listings. Other than the petrochemicals firm (Sasol), I will argue that these firms are major beneficiaries of the 4IR. To put this in perspective, not long ago primary listings on the JSE was dominated by mining companies (Anglo) followed by FMCG (SAB) and retailers.

Currently, Naspers is, by a huge margin, the largest of the primary JSE listed entities and is indeed a big tech firm, or at least a big tech holding firm via its share in Tencent. However, the bulk of its value (over 100% of it) is in offshore entities, making it less suitable for domestic comparison. The other four comprise two financial services players and two mobile telcos that mainly operate in SA and wider Africa.

It is useful to compare the descriptions used for the big tech firms to what local entities do. Do they introduce aggressive technological innovations offering significant benefit to hundreds of millions if not billions of end-customers directly via digital means? While the scale is not the same as the global big tech firms, I argue that technological innovation and direct (digital) delivery are key factors in the success or failure of players in these industries. Each of these entities have systems/IT capex spend in the billions if not tens of billions per annum, aimed to a large extent at innovation and improving direct/digital delivery. Lets unpack in more detail how the 4IR impacts their industries, starting with financial services.

Financial services in SA and globally is experiencing unprecedented competition due to the entry of so-called fintech players in many parts of the value chain as well as a range of established firms (big techs, insurers & retailers) applying for banking licences or forming partnerships with banks. From an economic perspective this is driven by the perceived lowered entry barriers - post the 3IR producing a web portal or an app is significantly easier and less costly than establishing branch infrastructure.

Structurally this puts pressure on legacy institutions to up the game and firms without the necessary capabilities may well be left behind. However, globally and in SA the jury is still out on whether the new breed of e-banks/fintechs will be successful. Besides niche players in areas like payments (think Paypal and Ant Financial), there are very few successful e-bank players. This is perhaps largely due to incumbent players having invested heavily in technology to land customer-centric platforms with advanced data analytical decision-making ability across credit, customer interaction and customer value management to mention only a few areas.

The advantage incumbents have over new entrants is not just a large customer base and established brand (and reputation), but also the network effect of huge data sets and ability to interconnect customers - business & retail, employers & employees, sellers & buyers, etc.

The next large 4IR sector is telecommunications, particularly mobile telecommunications. At face value this is a very technology dependent industry with successive 'generations of mobile broadband technology (2G, 3G, 4G, LTE Advanced) ushering in a race amongst players to continuously upgrade infrastructure. In developed markets, telecommunications players are often seen as 'infrastructure providers for big tech and other OTT (over-the-top) players to utilise in building their ecosystems.

In some ways though, many telco players more closely resemble 4IR players as they dynamically manage service levels across owned and 3rd party infrastructure, prioritise real-time traffic and increasingly source and promote content. Some also see themselves as financial services players in payments, insurance, etc., leveraging their customer and risk management skills. From my perspective, being responsible for both banking (FNB Consumer) and an MVNO (FNB Connect), both industries certainly benefit materially from the data analytical capabilities that typically define the 4IR.

In my view South Africa is already firmly transforming into a post 4IR economy, even if not quite as explicitly as is the case for the US and China where pure big tech firms dominate company rankings by market capitalisation. The implications of this 'revolution are huge - impacting the nature and location of economic growth and employment, but also potentially exacerbating inequality and triggering policy responses, going to the heart of what SA needs to be globally competitive.

Customers to benefit from disruption in Retail banking


18 September 2018: Customers will be the main beneficiaries of disruption and increased competition in Retail banking due to a potential improvement in value and customer service.

The bank says consumers have made an average of R8.7 billion worth of digital payments each month over the period.

Raj Makanjee, CEO of FNB Retail says, "An efficient digital payments ecosystem is fundamental to building a compelling digital banking offering. We believe that our digital banking offering provides superior value when you look at cost, convenience, security and incentives such as rewards. This is enabled through our adoption and integration of cutting edge technology to facilitate and safeguard transactions. A key security feature such as Smart In-Contact on our App is an example of functionality which provides customers more control and peace of mind."

FNB recently revealed that its overall digital migration journey saw a significant boost in the previous financial year with payments on its App growing by 63%. Over the years, the bank's eBucks rewards programme has also been a key incentive for customers to migrate to its digital banking platforms. The bank has disbursed more than R10 billion worth of eBucks over the course of the programme.

"We are excited by future opportunities to consistently improve the delivery of Transactional, Lending, Investments and Insurance solutions to our business. On payments specifically, we are increasingly offering more support to merchants to adequately support the payments evolution that's currently being pioneered by consumers," he adds.

"We understand that our success and relevance depends on placing customers at the centre of everything we do. In line with the realities that characterise our operating context, we continue to invest significantly in our people, systems and infrastructure for better customer experience," concludes Makanjee.

Sell your Home using nav» in the FNB App


31 October 2018: nav» the financial GPS on the FNB Banking App, continues to introduce the latest disruptive tools that help customers to manage their money digitally. Today, FNB has launched its more recent digital innovation on the nav» Home functionality that enables FNB customers to securely list and sell their homes privately to buyers who most likely qualify for a Home loan, while saving costs associated with the process.

"With over 8 million properties registered in the deeds office, we see a significant opportunity to become a game-changer in the property industry. The bank continues to innovate by delivering customer-centric integrated financial services underpinned by digitisation. Substantial investment has been made to ensure that our digital platforms are not only helpful but also built to enhance the overall customer experience; ultimately helping consumers to help themselves," says Raj Makanjee, FNB Retail CEO.

nav» Chief Imagineer (CEO), Jolandé Duvenage, says "Since launch in 2016, nav» has become a trusted platform that has enabled a multi-channel approach, which empowers our customers to navigate their financial journey. A first within the home market, the new functionality allows known FNB sellers to connect with known FNB buyers in a reliable, cost-saving and secure environment. This allows us to build upon our existing Home marketplace, which enables the ability to either sell through an estate agent or privately."

"Through this solution, our sellers and buyers can engage, arrange to view a listed property and negotiate the price, via Secure Chat on the FNB Banking App. Sellers and buyers and sellers also can disclose personal contact information only when they are comfortable to do so," says Duvenage.

This latest innovation follows the overwhelming response to FNB's nav» Home solution, which helps customers to search for houses, get pre-selected for finance and uncover associated costs with calculators. To date, nav» Home has over 1 million unique visitors and has paid out R4.7 billion worth of home loans since inception".

"Providing our customers with more choice through our self-service channels helps match sellers with buyers," says Duvenage. She unpacks the benefits for selling and buying a house privately via nav» Home:

Sellers

  • Access thousands of buyers most likely to qualify for a Home Loan
  • Conveniently calculate your savings upfront
  • A quick and convenient 6-step listing process
  • List for a fair price using an instant free value estimate for your property and view similar and current listings in your area
  • Manage and edit your own listing at any stage
  • Monitor number of views & likes (provides valuable customer insights)
  • Filter buyers on the likelihood to qualify for a Home Loan

Buyers

  • Engage in a trusted environment
  • View photo galleries of properties
  • Request a quick and easy pre-approval and Home Loan application
  • Access other nav» Home tools like calculators, instant free value estimates, area and property reports
  • Access a standard Offer to Purchase document
  • Get 50% back in eBucks on the first Home Loan repayment and get up to 50% off bond registration fees with a selected panel of attorneys
  • Filter buyers on the likelihood to qualify for a Home Loan

"This latest innovation forms part of our broader strategy to be a bank which does more to help its customers through its integrated digital banking solutions. Our solutions coupled with the nav» platform continues to propel us further towards becoming a trusted money manager that is built on partnerships, efficiencies and innovation," concludes Makanjee.

Correctly declare expenses in a home loan application


09 October 2018: Consumers who fail to correctly declare expenses when completing a bond application may limit their chances of getting the best home loan deal possible.

Mpho Ramatong, FNB Home Finance Division Channel Head: Housing Schemes, says when lenders assess an application, affordability, which considers your total income relative to living expenses, is an important measure used to determine whether you would be able to keep up with monthly home loan instalments or not.

This can further influence the home loan amount and interest rate you would be quoted for the term of the loan.

"Therefore, taking the time to ensure that your living expenses are declared correctly can go a long way to ensure that you get the best possible bond deal from your bank," says Ramatong as she unpacks some of the common mistakes that consumers make when completing the expenses portion of a home loan application:

  • Duplication - some applicants fail to get a good home loan deal due to the duplication of expenses.

    For example: If you have declared funds that you prepay into your credit card monthly, which you may be using to fill up for petrol and for groceries, you need not complete the groceries and petrol expenses portion in the form.
    Ramatong says another form of duplication may arise if you are co-applying with a partner or individual that you stay with. In this instance, only one applicant may declare shared living expenses. For example, rent, water and electricity costs.

    If the expenses are duplicated, lenders may not always be aware that the co-applicants stay together and share some expenses.
  • Dishonesty - being dishonest about your living expenses may lead to your application being declined.

    When applying for a home loan, banks require that you submit a payslip and six months' worth of bank statements, amongst other documents. As a result, any disparity in the expenses portion of the form can easily be picked up by the bank.
  • Entertainment - be careful not to mistakenly declare a high entertainment expense by failing to separate needs from wants.

    For example, a need could be monthly costs for educational or recreational activities. While a want can be anything that you would possibly cut back on in tough times, such as movies or eating out at restaurants etc.
  • "If you aren't sure about how to correctly declare expenses, it is advisable to consult your bank or an expert to avoid making costly mistakes," concludes Ramatong.

FNB Connect expands network coverage


7 November 2018 - FNB Connect customers will benefit from increased network coverage through the recently announced multi-billion Rand roaming agreement reached between Cell C and MTN. This agreement will significantly increase coverage, specifically 3G and 4G coverage across South Africa for our FNB Connect SIMs.

As a telco within the financial services industry the bank has over half a million active sims; which is indicative of our ongoing growth in the market.

Providing convenient customer centric solutions coupled with innovative technologies has helped the bank build products that fit the customers' lifestyle. "The increased network coverage highlights our commitment to ensuring that we provide customers with the best services, and through our partner relationships ensure that our customer needs are a priority," says Shadrack Palmer, Chief Commercial Officer, FNB Connect.

"As a result of this new roaming agreement expected to be completed by the end of the year, customers will experience an enhanced network quality and faster download speeds. No action is required from our customers as their phones will automatically and seamlessly switch between base stations, ensuring a far better call and data services experience," says Palmer.

The bank continually looks at enriching its product offerings with good value and convenience for its customers. Our aim is to help our customers to connect more, through great deals we bring to the market and our continuous effort to simplify SIM packages and rates structures," concludes Palmer.

Understanding the importance of setting up a trust


05 November 2018: There is a misconception that a trust is only for wealthy individuals and one needs a lot of money to set it up. The reality is that any person can open a trust if they have some form of an asset that they feel need to be safeguarded for the benefit of their beneficiaries.

Matlhodi Leteane, Head of Operations at FNB Fiduciary says "when one considers setting up a trust, they first need to answer two key questions; why and for who. Why represents the reason you are setting up a trust while who represents for whose benefits?

Trusts are used as an effective estate planning tool to safeguard the assets on behalf of your beneficiaries. For example, debts that belong to the person who opened a trust are separated from the assets that are in a trust because a trust is a stand-alone vehicle.

"Consumers must not lose track of the reasons they opened a trust but look at the long-term benefits that a trust will afford their beneficiaries," says Leteane.

Leteane outlines what a trust can allow individuals in order to safeguard their assets for the benefit of their beneficiaries:

  • The smooth transfer of wealth from one generation to the next (or even multiple generations)
  • A flexible estate planning tool allowing for the limitation of assets held in one's personal capacity
  • The separation of the ownership and use of assets
  • A useful tool to manage and protect the interests of minors and beneficiaries who are incapable of dealing with their own financial matters

Creating a trust to look after the interest of your minor children could be as easy as drafting your will and including a provision for a Testamentary Trust. However, one need to ensure that your trust structure suits your unique personal needs.

"It is advisable to enlist the service of professionals who are informed about the legislation in relation to trusts so that they can guide you. This will ensure that the trust is managed according to legislation and best practices," concludes Leteane.

eWallet eXtra bags 50 000 users in just over a month


29 October 2018: In just over a month since being made publicly available, FNB's eWallet eXtra has registered 50 000 users and is seeing a steady increase in transactional volumes, especially cash sends.

The mobile digital account was announced 6 months ago and officially went public on 27 August 2018.

Gugu Zikhali, FNB Head of Transaction Products: Mass Market, says "eWallet eXtra has no monthly fees and is primarily aimed at South Africa's unbanked market. The positive uptake is testimony that South Africans have appetite for digitally based banking solutions. Anyone who owns a mobile phone can open an eWallet eXtra account without having to visit a branch. All that is required is a name, surname, ID number and thereafter the customer is issued with a unique account number."

"Full control and safety are key features of eWallet eXtra and the first layer of security allows users to generate a PIN code to access their account."

eWallet eXtra users can view their bank account balance and transaction history on their mobile phone at any time, from anywhere. The account has a daily spend limit of R3 000 and R24 000 per month, while cash withdrawals can be made at FNB ATMs or over the counter at participating SPAR stores.

"Mobile device penetration in South Africa has been quite vigorous over the years, this has necessitated the development of innovative banking solutions such as eWallet eXtra. Mobile banking platforms such us eWallet eXtra are especially game changing for consumers with limited banking options," concludes Zikhali.

To open an eWallet eXtra account simply dial *120*277# on your mobile feature phone or smartphone and follow the prompts.

FNB clients embracing In-App messaging for banking


16 October 2018: FNB has recorded a 56% increase in the number of FNB Premier clients who used 'Secure ChatTM' between July 2017 and July 2018. 'Secure Chat™' is FNB's instant messaging service on the FNB App that clients can use to contact their team of bankers.

App logins further increased by 55% with the average number of logins per month increasing by 17%, over the same period.

Kamal Kalian, FNB Premier CEO, says FNB's digital migration strategy continues to yield positive results with a significant number of clients now using digital banking channels to manage their day to day finances. Kalian adds that the bank has invested substantially to introduce helpful digital innovations that enhance clients' lives.

The increasing use of 'Secure Chat™' amongst FNB Premier clients who earn between R300 000 and R750 000 per annum is synonymous with the overall use of the FNB App amongst all FNB clients, which increased volumes by 65% in the past financial year.

Digital banking not only offers clients convenience and peace of mind, but empowers them to have full control of their finances.

"Many of our Premier clients have fast paced lives and are constantly looking for digital tools that have extensive functionalities, enabling them to manage finances and other areas of their lives on the go. Consequently, the FNB App has also become an effective way for clients to access information and for us to communicate with them regularly through push notifications."

The FNB App, has become more than just a banking tool, but also a lifestyle enabler through industry leading solutions, such as nav>> Money which helps clients manage their personal finances, amongst other value-added services.

FNB Gold has also seen a steady uptake of digital channels in this market, which is comprised of clients who have a monthly income of between R84 000 and R300 000 per annum

Over the past financial year App logins significantly increased among Gold clients. This trend is expected to continue as more clients migrate to digital channels, particularly the FNB App.

"Through our ability to digitise the front end and automate the back end of our banking systems, we can add value by giving clients access to sophisticated products and services via our digital channels, and this has contributed immensely to the uptake of the FNB App among Premier clients," concludes Kalian.

Starting over after a divorce has been settled


18 October 2018: Divorce can have substantial impact on an individual's financial position, especially if finances were involved in the relationship and there was a settlement agreed by both parties.

Ester Ochse, Product Specialist at FNB Wealth and Investments says, "while this could be a very difficult time for individuals, this doesn't mean that you must forget about your financial future. It is advisable to relook your financial position holistically and start a financial journey that will put you at the right position over a long-term period."

Ochse unpacks areas that needs to be prioritised when starting your new financial journey:

Budget: the first thing you need to do is look at your budget now that there are no longer two incomes taking care of household needs. Relooking your budget will enable you to identify and prioritise negotiable and non-negotiable expenses so that you are able to meet all your household needs.

Will: it is important to update your Will after a divorce to ensure that your assets are allocated to the beneficiaries you would like to benefit in the unfortunate event of your death.

"There is a three-month grace period within which individuals are allowed to update their wills, once the grace period laps and the Will hasn't been changed, the previous Will come into effect again," says Ochse.

Insurance: ensure that you update your insurance such as life cover to reflect the names of the beneficiaries that you would like benefit in the unfortunate event of your death.

Retirement goals: once you are divorced, your retirement goals might change slightly depending on what you and your ex-spouse plans were for retirement. Therefore, you need to re-evaluate your goals and ensure that you are making enough contributions to retire comfortably.

"This is especially important if you had to share your pension contributions with your ex-spouse in the divorce settlement," says Ochse.

Emotional and physical well-being: more often, people make unwise financial decisions in moments of heightened emotions or weak physical health brought on by stress. As difficult as this may be, is it advisable that you approach your financial affairs in a balanced and objective way to avoid making financial decisions that you will later regret.

"In this very difficult time, consumers are advised to be extra cautious about how they handle their financial affairs. Therefore, it is highly recommended that they enlist the services of a certified financial advisor and seek counselling to ensure that they approach their new status with a holistic, balanced, healthy and positive mindset in order to safeguard the future of those who depend on them," concludes Ochse.

Factors to consider about your retirement plans when changing jobs


08 October 2018: Many people are more likely to change jobs during their working life. When this happens, individuals must consider the financial implications that comes with changing jobs, especially long-term plans such as retirement planning.

Preenay Sathu, at FNB Wealth and Investments says "people change jobs for a number of reasons and in most cases when the move takes place, it has some implications on their finances. Some of the common reasons for changing jobs are career development, growth, better salary and benefits or due to relocation."

"Changing jobs is more likely to have a direct impact on the individual's finances as they may be getting a better salary compared to the previous job, spending more or less on transport, for example," adds Sathu.

Sathu unpacks three scenarios that individuals may be faced with when changing jobs:

  • Company doesn't offer retirement benefits: if you are leaving your current company that offers retirement benefits to a company that doesn't offer retirement benefits; it is advisable to continue with your current retirement contributions so that you stay on track of reaching your retirement goals.

    "While such decisions could be driven by better career development and/or better salary, consumers must not neglect their retirement goals. In this instance, it is advisable to consult a certified financial advisor who will guide you choose the right funds that will meet your needs," says Sathu.
  • Company offers retirement benefits: even if the new company offers retirement benefits, you need to ensure that you make adequate contributions which will ensure that you retire comfortably. Moreover, avoid putting all your eggs in one basket, by having your own retirement plan in addition to the one offered by your employer will benefit you in the long-term.
  • They offer different retirement funds: for example, if you are moving from a company that offers a retirement annuity to a company that offers a provident fund, it would be worthwhile to continue with the retirement annuity in your personal capacity. This will help further strengthen your retirement benefits which will help you benefit immensely over the long term.

"Retirement saving is a long-term commitment that we should not lose sight off when changing jobs. While it might be difficult for us to immediately see the benefits of retirement savings, the long wait will be worthwhile at the end," concludes Sathu.

Offshore Investing trends


10 October 2018 - Globalisation and the information age has made the world more fluid arena from an investment perspective. With political uncertainty continuing to dominate locally, and other emerging markets adding additional risk to local asset price returns, the case for offshore investing remains strong.

Country specific risks are reflected in all asset prices and the only way to reduce the risks rooted in any one market is to look elsewhere. "Investors diversify to reduce the overall risk of their portfolio losing value. Because good diversifiers generally have weak, negative, or no relationship with other asset classes they may maintain or even increase in value when another asset class in the portfolio loses value or delivers low returns," says Chantal Marx, Head of research, FNB Wealth and Investments. "Often when a country risk spikes, asset prices elsewhere may not react or could even move in the opposite direction."

For example, during the Global Financial crisis, South African (SA) bond yields spiked while US bond yields trended lower.

In December 2017, political changes locally resulted in a return in investor confidence in the domestic bond market while US bond yields have been creeping persistently upward following President Trump's election to office.

More recently, political turmoil in Turkey and concerns over a burgeoning trade war between the US and China has resulted in emerging market bond yields (including SA) spiking while US treasuries returned to favour for their haven appeal.

"With the rationale for offshore investing clear, consideration needs to be given to the mechanics thereof. 'Offshore' is also an exceptionally broad term and basically refers to the 194 countries outside of South Africa, not all practically and fundamentally investable. In the past, offshore exposure has been affected through either buying foreign currency unit trust funds and traditional mandate exchange traded funds directly, mostly in hard currency; or building up cash savings in hard currency in an offshore bank account," says Marx.

Investors no longer must forego alpha or rely on the experts to invest on their behalf when looking offshore. Building a bespoke offshore equity portfolio is now a real possibility and costs have been trending lower. Big names like Google, Amazon, Facebook, Louis Vuitton Moet Hennessy, and BMW can now be purchased directly.

No longer just the US

Offshore investments have traditionally been centred around developed markets, which makes sense, as South African asset prices are highly correlated with emerging market asset prices, but enjoy only moderate (or even low) correlations with developed market assets.

Something that has not been considered, however, is how South African asset prices correlate with frontier markets.

By simply looking north of our borders, the diversification benefit will be even greater than investing in the US. The MSCI South Africa has an only 0.2 correlation with the MSCI Africa (ex-SA).

Investing in the Future as opposed to the Present

"We often think about the future and consider a world where electric vehicles, tech-capable homes, and biotechnology is the order of the day. Thematic investing is a way to make investment decisions based on predictions about trends, rather than on past performance of the market or the fundamentals of a specific company. By digging a little, you can identify the companies that could change the world, and provide you with attractive returns at the same time," says Marx.

While this sounds good in theory, it is quite difficult to self-identify the best way to benefit from changes in the way that society operates. In this case, one can consider investing in a thematic ETFs focusing on artificial intelligence, robotics, medical advances, and even just the plain old digital economy.

Offshore investment in ZAR

Many options are now available to offshore investors which do not require using your yearly offshore allowance as stipulated by the SARB. South African based investors can look at inward listed shares on the JSE (like Anheuser Busch, Richemont, and British American Tobacco) or ETFs and Unit Trust Funds denominated in ZAR but that are investing this side of our borders.

"Offshore diversification may not provide the best returns in any one year, but it has never provided the worst. And in the context of lowering risk, is vital in successfully executing a balanced mandate. With geopolitical risk rising, currency volatility in many emerging markets, and growth arguably peaking in developed markets there is still a case to be made for putting your eggs in as many baskets as possible," concludes Marx"

FNB partners with FinTech distribution platform to help solve Financial Inclusion


26 November 2018 - First National Bank (FNB), a division of FirstRand Bank Limited, today announced its partnership with Selpal, a South African FinTech company that operates specifically in the township and informal economy, or the "Unseen Economy".

Michael Vacy-Lyle, CEO of FNB Business explains that "with 50% of South Africa's urban population living in townships, the ecosystem supporting these communities warrants significantly greater focus from the banking sector. We refer to this opportunity as the "Unseen Economy" - the opportunity space that most call the informal sector or the township economy. These businesses range from survivalist businesses to often highly organised and sizeable SME operations. At FNB Business we are of the view that this business segment of the South African economy has been ignored for far too long".

Statistics show that there are around 30-40 businesses per 1,000 people in townships. FNB estimates that this translates into around 800,000 to 1million businesses. The majority of these are survivalist businesses, with around 300,000 representing entities employing three or more people. FNB believes that these businesses are under serviced from a banking perspective mainly due to cash being the predominate form of payment for them.

"Access to financial services is critical for the growth of any economy and these businesses should be included into the financial system. Transactional banking, investing, lending and insurance opportunities exist in this unseen space" says Vacy-Lyle.

Selpal is a unique technology start-up company that has developed an integrated system that connects informal retailers such as spaza shops (community grocery stores) with FMCG (fast moving consumer goods) suppliers, wholesalers and brands. The user-centric platform was designed and built using direct observations, engagements and understanding of the pain-points that various users experience along the entire FMCG value chain in the informal sector, from manufacturer to consumer.

Stephen Goldberg, the CEO and co-founder of Selpal explains "Selpal is an agnostic virtual distribution platform which electronically enables the way in which products are ordered, paid for and sold in the unseen economy. Using proprietary hardware and software that we have developed, we are creating a network of partner store traders which we equip with a Selpal POS (point-of-sale) device that lets them view, order, pay for and sell stock and value added services without the store-owners ever needing to leave their shop, and unlocks extra revenue for them. It also changes the way that their customers buy from them, extending the benefits and extra value to the end consumer. Our partnership with FNB Business will help expand our network and supercharge our growth. Every Selpal store will provide a potential service point for financial access and inclusion. The FNB partnership brings both credibility and access to FNB's significant expertise around financial regulation and payments infrastructure, which will bring value to all participants in our ecosystem".

Most townships have businesses operating in the following main sectors:

  1. Grocery retail / "spaza shops" and the supply of fast moving consumer goods;
  2. Taverns / "shebeens";
  3. Hair care;
  4. Motor & cellular repair and service;
  5. Educare; and
  6. Micro-manufacturing

In due course FNB together with Selpal intends addressing the needs of all these sectors.

The largest opportunity presents itself in the FMCG space - spaza shops and other retailers. These businesses tend to employ three or more people, but are largely run on a cash basis and are often unbanked. There is a clear need to provide cost effective and safe financial solutions into this space.

"The Selpal system, offers a unique value proposition to almost all participants in the FMCG value-chain; from the brand owners to the wholesalers, distributors, the retailers to the end consumers, and now with the FNB partnership, we are planning to expand our integrated ordering and payment functionality which will make it easier and safer for all these participants by further removing cash" says Goldberg.

FNB Business has been on a mission to provide meaningful and relevant solutions to help support and grow businesses in South Africa's informal or "Unseen Economy", including businesses operating within townships.

"We have been working on multiple strategies over the last 18 months to really help make a difference to the informal business market in South Africa. The Selpal business model is a great fit to enable one of those strategies, namely the integration of FMCG value-chains to not only reduce cash as a payment instrument in the economy, but in so doing hopefully include these informal businesses into the formal financial services world; offering them real value, efficiencies, helping them manage risk and reduce costs in their businesses" explains Jesse Weinberg, Head of the SME Segment at FNB Business.

The partnership between Selplal and FNB goes beyond creating efficiencies and the removal of cash in these markets, at its core, this partnership is focused on better understanding and servicing micro-enterprises in the townships with a view to uplifting communities and driving financial inclusion. It includes finding a relevant and efficient way of reaching both businesses and consumers to drive financial inclusion.

"Our plan is to help grow and then leverage Selpal's footprint in townships nationwide to further deliver financial services to this "Unseen Economy", in the form of transactional capabilities as well as financial services products. The partnership is aimed at disrupting years of historic systems that have kept businesses in the informal and township markets financially excluded, and this means a fresh and unique approach at connecting all parts of the ecosystem" concludes Weinberg.

Recently, FNB Business was once again voted "SA's Best Business Bank" for the sixth year in a row according to the Sunday Times 2018 annual survey. The bank continues to pioneer in providing meaningful solutions for entrepreneurs, and is committed to finding ways to help support and grow this incredibly important segment of our economy for the betterment of the South African economy.

The 7th Annual FNB Franchise Leadership Summit


13 November 2018

Michael Vacy-Lyle, CEO FNB Business

The franchising sector has shown steady growth over the past four years, in a tough economy from contributing an estimated 9.7% to the country's GDP in 2014 to its recent figure of more than 15%, according to the Franchising Association South Africa ("FASA") 2018 survey. This trend is expected to continue.

The survey further highlights that 78% of franchisors are optimistic about future growth in their businesses. Around 30% of franchises are now owned by previously disadvantaged South Africans, with one in three franchises turning over more than R20m per annum. This together with the fact that on average a franchise employs 18 staff members (the sector employs more than 370 000 people), makes it clear that as a business model, franchising remains critical to the future of South Africa.

Given the FNB Franchise Leadership Summit theme this year - "the future of the franchising sector" - I thought it would be good to reflect on some of the key trends we are noticing in this very dynamic space..

1. More Multi-Unit Owners, and franchisees owning multiple concepts

What happens once you have mastered the tried and true formula franchises have designed for their franchisees? If you're like many franchise owners, you start opening another location. And then another. By recreating your success in multiple locations, you can quickly grow your revenues and increase your business' sustainability.

Many franchisee owners are also opening other, non-competing franchise offerings as they grow their businesses in an effort to diversify earnings.

2. Smaller, more cost-effective franchise models

Among the new frontiers in franchising is the food court losing its legacy as the preferred setting for food franchises, as service stations increase in popularity in the industry. Many brands - including Steers, Debonairs and Mugg & Bean On-the-Go outlets - are co-locating with major fuel retailers to create fully-integrated accessible centres. Looking at new, less expensive alternate locations beyond the shopping malls and strip malls to expand into stand-alone kiosks, food trucks, corporate catering, campuses, sporting events, craft markets, is a major trend

3. Niche markets

Consumers increasingly prefer local businesses over national brands. Some of the bigger brands are looking for creative ways to tackle this situation by tagging with local businesses and this trend is on the rise. Niche markets are gaining traction. Whether it's in offering a unique 'gourmet' food experience, craft beer or whether it's in the environmental space of energy saving technology or recycling, these are where many new opportunities are to be found. With the increase in social awareness, social responsibility is a part of any business, small or big. The current generation of consumer is challenging the role that business plays in society and franchises have wonderful platforms to play a positive role and in so doing win customers.

4. Increased customization/ personalisation

In a world of increased consumer choice, it is no longer about what you have on the menu, it is now about how your product or service can be tailormade to what a customer really wants. The success of RocoMamas speaks to this - with 61 franchise outlets their business model clearly responds to the essence of this trend by allowing consumers to create their own burgers, and increasingly consumers want the ability to create their own dining experience.

5. On-demand products/ services

Amazon is a great example of this - same day delivery is becoming the norm in the age of instant gratification - I want it now! Differentiation through delivery remains a big opportunity.

6. The significance of online and social media

Social media is how your customers chose to interact with brands, whether to express anger, inquire or to show appreciation. It is no longer about the question of should a business use social media or not, it is now more about how a business uses social media. Toda'ss digital-savvy customers are highly choosy about online buying. Some key points to consider:

  • You need A Responsive, Interactive and up to date Website;
  • Customers should be able to view your website perfectly on any device;
  • Data Analytics is Important - Like it or not, your data is what drives your business; and
  • Seemless and Safe digital payments are critical.

There is no doubt that franchising not only offers viable business opportunities, but also ensures that franchisees are better equipped to weather the tough economic environment. We at FNB Business remain committed to helping grow this very important sector and are well positioned to provide solutions supporting franchising as it evolves with these themes.

FNB kicks-off Global Entrepreneurship Week by engaging township entrepreneurs


12 November 2018 : FNB is once again embarking on a series of interactive engagements with entrepreneurs across South Africa's biggest townships. Launched in 2017, the initiative is part of the bank's ongoing engagements with small businesses that operate within townships, to unlock mutual value in this "unseen" economy.

The theme for this year is 'how can township entrepreneurs future-proof their businesses?' . The theme is mostly relevant in the context of the local economy as small businesses are particularly vulnerable to the prevailing economic conditions in South Africa, where the country has seen limited to negative growth.

Jesse Weinberg, Head of the SME Segment at FNB Business says, "South African townships have always been a hive for entrepreneurial activity, but the main challenge has been unlocking the potential to generate broader economic benefits for both the communities that they operate in, and for South Africa as a whole. In these sessions FNB will strive to educate and equip entrepreneurs with valuable insights, tools and knowledge that will hopefully assist with future-proofing their businesses."

This year's engagements will kick-off at KwaMashu (Kwa-Zulu Natal) on 12 November, Soweto (Gauteng) on 14 November, Alexandra Township (Gauteng) on 15 November and concludes at Khayelitsha (Western Cape) on 16 November.

The speaker line-up for these events includes:

  • Stafford Masie : Technology Entrepreneur, will talk about "Digital trends and disruption for businesses".
  • Mummy Mthembu Fawkes : Founder of the haircare range, Earthy, will talk about "Your business in the eye of the millennial".
  • Anton Van Metzinger : Head of Digital Platforms, FNB Business Banking, will talk about "The journey of FNB as a digital Bank". Earlier this year FNB launched 'switching with a selfie', which allows businesses to easily open a business account by using a selfie for the identification process.

"Over and above these townships engagement events, we remain committed to investing in and finding ways in which we can help support and grow entrepreneurs based in townships. We will be using this week to launch some exciting new products specifically intended for this market, as well as inviting attendees to be part of the planned pilot of further offerings that will be announced over the coming weeks and months. We are particularly excited to invite actual businesses to be involved in our product development process to ensure we deliver solutions that can really help increase the success of South African entrepreneurs" concludes Weinberg.

Recently, FNB Business was once again voted "SA's Best Business Bank" for the sixth year in a row according to the Sunday Times annual survey. The bank continues to pioneer in providing meaningful digital solutions for entrepreneurs, which include Instant Accounting software which is offered for free with a business current account, as well as business registration solutions with CIPC.

Black Friday shopping spree to lift local e-Commerce


21 November 2018 - South Africa's e-Commerce will once again get a major boost on Black Friday and Cyber Monday as consumers are increasingly becoming aware of the convenience of online shopping to avoid the long queues, says FNB.

Last year, FNB processed an average of over 800 000 card transactions per hour which peaked at 1.5 million card transactions between 16h00 and 17h00 because of last year's Black Friday shopping spree.

FNB Retail CEO, Raj Makanjee says, "The transaction volumes give a firm indication that Black Friday has become one of the important days for South African consumers. Many see this as an opportunity to stretch their budgets amid unrelenting pressure on household income. Consumers who have set aside a budget will be in a better financial position and we encourage those who need to use credit to do so responsibly. It's vital for consumers to consider that there's still a long festive season ahead, therefore, it's important to reserve some funds for unforeseen emergencies."

Christoph Nieuwoudt, CEO of FNB Consumer says, "During last year's Black Friday, we saw an overall 120% increase in card payment volumes compared to a typical Friday. The spike in Black Friday spend was driven by a 250% increase in purchases from local online retailers versus the 80% spend increase at physical retailers. Interestingly, we only saw a 60% increase for international sites like Amazon vs a typical Friday. By comparison, spend on Cyber Monday was synonymous with volumes of a typical Friday. The real winners were domestic online retailers which doubled their share of spend from a typical 5.5% to reach 11% of total debit and credit card spend on the day."

As consumers prepare for the Black Friday shopping spree, FNB has unveiled valuable deals to ensure that its customers' money goes further. FNB customers can expect discounts of up to 60% on the eBucks Shop for tech, gaming, travel accessories and gifting items. Customers will be able to spend using their FNB Cards, eBucks, or part-pay with both.

FNB Connect will save customers up to 40% through great deals on smartphones, laptops, TVs, gaming devices and wearables. The deals will be open for 2 weeks from 19 to 30 November 2018, with instalments fixed for 24 months to help customers manage their monthly budgets. The FNB Connect deals include:

  • Apple iPad (6th Gen) 32GB with Pencil bundle for R369 over 24 months;
  • Apple Watch Series 3 38mm with Airpods bundle at R399 over 24 months
  • Land Rover Explore outdoor phone with a free bike mount at R689 over 24 months.
  • Xbox One 1 S TB for R199 over 24 months if taken between 23 - 27 Nov 2018; comes with a controller, 3 months Live.

Consumers will also benefit from optimal security when using their FNB Debit and Credit cards to shop online, by entering a bank issued One Time Password (OTP) on secure merchant website. They can also use the FNB APP or Online to verify the cellphone number or email to receive the OTP.

The bank also encourages consumers to be vigilant of websites which request their online banking details when making payments. In addition, customers can also report fraud, cancel a lost or stolen card immediately on the FNB APP, FNB Online, Cellphone Banking, FNB ATMs or the FNB contact centre.

ATM safety tips to void being scammed


29 November 2018 - FNB has various digital platforms for convenient and safe transacting such as the FNB App, Online Banking and Cell phone banking. However, when you use an ATM ensure you exercise caution by remaining vigilant of your surroundings.

Lee-Anne van Zyl, CEO of FNB Points of Presence, says "The festive season is a busy period and it's unfortunately during this time that fraudsters are on the prowl. To avoid the risk of falling victim to fraud, it's best to equip yourself with as much information as possible. ATMs and ADTs are a convenient way of banking because they allow for 24/7 access to transacting outside branch with their multiple functionalities. However, to lessen the risk of fraud it's advisable to make purchases via your bank card, this is not only safe but also helps you keep a record of your expenses." Here are some tips related to ATM safety:

Tips for protecting your ATM PIN

  • Keep your ATM PIN confidential, never share it with anyone even friends and family and don't write it down.
  • Don't make you PIN combination easy to guess - such as a birth date.
  • When transacting, cover the key pad with your hand - scammers can place cameras to record your PIN as you punch it in.
  • Stand as close as possible to the ATM and never let anyone stand close or distract you whilst transacting.
  • Do not enter your PIN on a screen that is unfamiliar to you. Carefully read the instruction on the ATM screen before entering your PIN.

Tips for protecting your cash

  • Once cash has been withdrawn, immediately place this out of sight. Avoid handling cash in public view and secure your wallet and handbag before leaving the ATM.
  • Set a realistic daily limit on your banking to protect yourself, should your details be compromised and check your statements regularly and report suspicious transactions immediately. Rather use your debit card for purchases.
  • Be wary of strangers that may call you back to the ATM to complete a transaction. They often ask for assistance or offer to assist you. Once you have completed your transaction, leave as soon as possible and avoid conversation with strangers. If you are disturbed, whilst transacting at the ATM, your card may be skimmed, by being removed and replaced back into the ATM without your knowledge. Cancel the transaction immediately.

Card cancellation

If you suspect that your card has been lost or stolen you can cancel it on any FNB ATM by following the prompts on-screen:

  1. Select Lost/Stolen
  2. Select Card Cancellation
  3. Key in your ID number
  4. Key in the PIN for the last card you used and select Cancel Card
  5. Select the card/s you want to cancel and your reason for cancellation
  6. Confirm cancellation of card

Your card/s will be cancelled and blocked, which will prevent it from being used by anyone without your consent. However, your bank account will not be closed and you will still be able to access your account and do everyday banking transactions including cardless withdrawals using our eChannels. You can reorder your cancelled card at the ATM.

Remember to:

  • Never ask for help from strangers, even the security guard - if you are unsure, visit a nearby branch for assistance.
  • Never force your card into the ATM - if the card is not easily accepted by the device, it may have been tampered with by criminals and never use an ATM if it looks faulty or show evidence of tampering.
  • Pay attention to your surroundings and be alert - look out for loiterers.

FNB is the first to launch consumer and merchant QR code payments on its banking app


Capability is powered by Masterpass, Mastercard's digital payment service

23 January 2019 - FNB, South Africa's best digital bank, is expanding its digital payments ecosystem by enabling consumers and sole proprietor businesses to perform and accept QR code payments using the FNB Banking App.

This makes FNB the first bank in South Africa to integrate QR code payments for both consumers and sole proprietor businesses on a banking app. The integration of QR code payments on the FNB Banking App which has 2.8 million active users helps customers with another simple choice in digital payments as there is no need to download any additional app.

Raj Makanjee, FNB Retail CEO, says "We are rapidly expanding our digital payments ecosystem by providing customers with helpful digital payments solutions. The ability to make QR code payments offers our customers convenient and secure alternatives to carrying cash. As pioneers in innovation, we are consistently developing a wider selection of customer centric solutions in digital payments, including solutions such as GeoPay and FNB Pay."

Mike Vacy-Lyle, FNB Business CEO says, "As the leading business bank in South Africa, we continue to make significant strides in ensuring that our solutions cater for the entire business value chain, of which the ability to process convenient and safe payments is a key component. This industry-leading payment solution helps us to grow digital payments acceptance among business customers and reduces reliance on physical cash, which remains one of the biggest challenges for such businesses from a cost, security and time management perspective."

To make payment, individual FNB customers can simply enable the new FNB App 'Scan to Pay' widget on their smartphones. Alternatively, they can select the Payments option on the FNB App, login and select FNB Pay, then click on 'Scan to Pay'.

Similarly, businesses will select Payments, login and click on 'Speedpoint', register and begin to utilise the service within 24 hours. Businesses have the option to display the QR Code within the FNB app, email and print the QR code, or share it via social media. There are no monthly rental or maintenance costs which makes this a cost effective means for a business to accept digital payments. Those businesses that do not bank with FNB can open an account, register and start accepting QR code payments all within the FNB App.

This innovative capability is powered by Masterpass, Mastercard's digital payment service, which is interoperable with most major domestic scan-to-pay services, representing a footprint of approximately 140,000 merchants and billers.

"We are excited to partner with FNB to further accelerate the adoption of digital payments in South Africa, using Masterpass' existing QR code infrastructure," says Mark Elliott, Division President, Mastercard, Southern Africa. "It furthers our goal of enabling consumers and businesses to transact anywhere, at any time or place, across any channel or device from a single app on their smartphones."

"FNB remains committed to providing helpful digital solutions that enable consumers and businesses to make and accept payments, respectively. Over the years, the bank has remained at the forefront of digital innovation, including empowering its client service staff to help customers along its digital journey," concludes Makanjee.

FNB unveils new Easy account with medical, legal and financial advice for consumers


4 February 2019 - FNB has launched its new Easy Smart Option bank account making it the first bank to combine medical, financial and legal advice as additional value to consumers who earn between R1 000 to R7 000 per month.

Dr Christoph Nieuwoudt, FNB Consumer Chief Executive says "The introduction of our new Easy Smart Option expands our range of cost-effective and helpful solutions for consumers who earn below R7 000 per month. Our comprehensive range includes eWallet send money capability, eWallet eXtra which has no monthly fee to help irregular income earners as well as the pay-as-you-use Easy account for consumers with minimal transactional requirements."

"Consumers are looking for help to stretch their limited household budgets and we are responding adequately to their plight. Traditional bank accounts do not always service the range of needs of consumers who earn below and slightly above South Africa's minimum wage. We believe that the combination of a suitable bank account, free and helpful value-added benefits will go a long way to helping consumers with money management," says Dr Nieuwoudt.

The new FNB Easy Smart Option helps consumers with 24-hour telephonic professional medical advice from a team of registered nurses who will assist accountholders to manage chronic, life-threatening, maternity and other everyday medical conditions. This account also offers consumers help with basic financial planning, debt management, garnishee support, and debt counselling from qualified financial advisors. The value adds include telephonic assistance by professional attorneys and paralegals to advise consumers on wills, pension, third-party claims and labour matters from Monday to Friday during work hours.

Furthermore, accountholders will get a range of free benefits including R3,000 of both deposits and withdrawals at FNB ATMs, R15 worth of airtime every month, free card swipes, a free savings account, 10 free online purchase transactions and free balance enquiries on FNB's electronic channels such as the FNB App, Online and Cellphone Banking.

"Consumers expect meaningful benefits from their banking relationship and this bank account caters for transactional needs at a reasonable price while offering much needed support to households which are surviving on limited income. As a trusted money manager, we believe that financial coaching is critical for every household, regardless of income size. Similarly, healthcare is a basic right in South Africa, however the costs of accessing basic medical advice requires transportation and sometimes time off work as people wait a full day due to high demand. This is why it is critical to help customers close this important gap," says Pieter Woodhatch, CEO of FNB Easy Sub-segment.

Holders of the FNB Easy Smart Option will only pay a monthly account fee of R65. The medical, legal and financial advice can be accessed on 0800 611 269, a toll-free number, or customers can use any cellphone to dial *134*905# to request a call back.

FNB Connect offers customers free data rollover and data transfer


12 February 2019 - FNB has announced that its customers who use FNB Connect can now benefit from free data rollover and data transfer, in addition to the existing data depletion and out of bundle notifications.

The development is in alignment with the Independent Communications Authority of South Africa (ICASA) requirements on data expiry and data transfer for all mobile network providers. Len Pienaar, FNB Connect CEO says, "We are providing an option for a free roll over of data near the expiry date for use in the following month. Customers who are on FNB Connect can also transfer data to one another, which is a major benefit for households. This is part of FNB's efforts to help customers make their money go further by enabling them to monitor and control their monthly data spend."

In addition, customers will receive depletion notifications when their data usage is at 50%, 80% and 100%, allowing them to actively track and manage usage. To promote transparency, customers are requested to provide consent before being charged out of bundle data rates and have the option to buy a new bundle.

"We believe that the combination of free data rollover, data transfer, depletion notices and consent on out-of-bundle usage adds significant value to FNB customers," says Pienaar. "Data and airtime form an important part of every household's monthly budget, therefore it's critical to empower customers to be in control of usage. As FNB, we are committed to continue providing customers with value for money and being in-line with relevant legislation," concluded Pienaar.

T&C's are available on www.fnb.co.za

Further information

  • Dial *147# on USSD to manage data rollover and data transfer.
  • All bundles that are rolled over will be valid for and additional 1 month from the original date of expiry.
  • Customers will be able to roll over their unused portion of their data bundle from five days before the bundle expires.
  • Rolled over data can be transferred.
  • Data can only be transferred from one FNB Connect number to another FNB Connect number.
  • No charges apply for rolling over or transferring of data.
  • Data bundles can only be rolled over once.
  • Data that is already transferred cannot be transferred again.
  • Only two transfers can be done per bundle per month.
  • There are six predefined transfer values available.

FNB cracks down on rogue debit order fraud


22 February 2019 - FNB has detected abnormally high volumes and disputes of suspicious debit orders with descriptors Procall and Mzansi in December 2018 and January 2019.

In line with its standard practice, the Bank informs customers of new debit orders loaded on their bank accounts. In addition, and based upon the monitoring of debit order disputes, FNB has detected that a large number of customers are disputing Procall and Mzansi debit orders using the FNB App and Online banking, among other channels.

As part of its investigation, the Bank contacted a number of customers in order to validate the debit order mandates provided by Procall. The feedback from customers was that they had not given authority for the debit order.

Dr Christoph Nieuwoudt, Chief Executive of FNB Consumer says, "Our investigations have provided sufficient proof that the impacted customers had not provided a mandate for the debit order and as result, the debits to customer accounts were unauthorised. FNB is proactively reversing all Procall debit orders including any associated charges and we are working with the corresponding bank to reverse all Mzansi debit orders. We are working with the Payments Association of South Africa (PASA) and the South African Banking Risk and Information Centre (SABRIC) on the matter and will be pursuing criminal charges."

"In conjunction with the relevant partners, we are deploying analytical, forensic and legal expertise to protect our customers against unauthorised debit orders. We apologise to impacted customers for the inconvenience caused and encourage them to regularly review their bank statements for any abnormalities," adds Dr Nieuwoudt.

Walter Volker, CEO of PASA says, "Industry players will not allow any behaviour that undermines the efficiency of our country's world-class payment system. Alongside efforts to continuously improve the efficiency of the overall payments system, we are consistently working with financial institutions and other partners to clamp down on debit order abuse." Currently, FNB customers can stop, dispute or reverse unauthorised debit orders of less than R200 for free on the FNB App, Online Banking and cellphone banking for those who do not have access to the internet and smartphones. In addition, the bank notifies customers via SMS every time a new debit order is raised on their accounts, with the ability to stop, dispute and reverse it.

FNB App registered InContact users receive alerts for all transactions regardless of the amount, giving customers full visibility of all monthly debit orders processed against their accounts. Along with the notification system, the bank's electronic platforms allow customers to view the current debit orders that are running off their account as well as the ability to stop, dispute and reverse the ones they believe are unauthorised. Debit orders that are higher than R200 can still be stopped, disputed and reversed via the FNB contact centre or at any FNB branch. While every case is treated on its individual merits, debit order disputes above R200 may incur a fee to prevent potential abuse such as the reversal of legitimate debit orders.

FNB broadens digital payment options for customers with Samsung Pay


05 March 2019 - FNB and RMB Private Bank customers who own a compatible Samsung smart device now have the option to use Samsung Pay to make secure contactless payments at almost any payment terminal in South Africa.

Raj Makanjee, FNB Retail CEO, says, "As leaders in digital innovation, we are consistently looking to provide customers with a wide selection of digital payment options as secure and convenient alternatives to cash. Customers want the liberty to choose and switch between various payment options that complement their digital lifestyles. Over the years, we have remained at the forefront of digital innovation while empowering customers with the power of choice. We are delighted with the rate at which our customers continue to embrace digital payments."

"Samsung Pay is the latest partner wallet to be enabled by FNB, following last year's successful launch of both Garmin Pay and Fitbit Pay. In addition, FNB remains the only bank in Africa to allow customers to make contactless payments via any compatible Android smartphone, using FNB Pay on the FNB App. The Bank's support for Samsung Pay, coupled with the recent launch of the new Scan to Pay feature on the FNB App, provides its customers with even more choice when it comes to digital payments," says Jason Viljoen, Head of Digital Payments for FNB.

"Our partnership with FNB is a giant step towards the acceleration of digital payments adoption and excellence in South Africa. We believe that the combination of mobile technology, cost efficiency and the buying power of consumers will significantly propel the adoption of safer alternative payments. Samsung Pay gives users full control of their digital payment journey by ensuring all transactions are secure and authenticated by the user. Featuring Samsung's defence-grade, Samsung Knox security platform and biometric authentication through iris or fingerprint scanning, users can have peace of mind that their personal payment information is safe," says Justin Hume, Director of Integrated Mobility for Samsung South Africa.

FNB customers can download the Samsung Pay App from the Google Play store, register or login if they already have a profile, scan their Cheque or Credit (FNB Business Credit Cards excluded) cards with the camera, select the preferred method of authentication and verify the details to begin making payments.

Samsung Pay can be used on the following devices: Galaxy S10+, S10, S10e, Galaxy Note 9, Note 8, S9/S9+, S8/S8+, S7/S7 edge, A8 (2018), A7 (2017) and A5 (2017), Galaxy Watch, Gear S3 Watch and Gear Sport Watch.

FNB delivers strong interim revenue and customer growth


FNB Financial Highlights:

  • Overall profits up by 12%
  • Strong contribution from Retail & Commercial Segments in SA
  • Customer numbers now over 8.2 million in SA
  • Innovative Digital & Data platform leveraged effectively for growth and efficiencies
  • Acquisition, Upsell & Cross-sell delivered continuous lift in earnings
  • Targeted advances growth to existing client base
  • NIR up by 11% in a difficult market
  • Direct Axis alignment gaining momentum

Johannesburg, 12 March 2019 - FNB has once again produced excellent interim results with strong performances across all its businesses, reflecting the loyal support of customers across Retail and Commercial Segments in the countries in which the Bank operates.

Commenting on the results, Jacques Celliers, FNB CEO, said: "We are pleased to see that our investment in growth initiatives over the last few years continues to pay off. More importantly, our platform is well positioned for future growth despite the challenging macroeconomic conditions and competitive climate in which we trade across the nine countries."

"Our deliberate, consistent and customer-centric primary-bank-relationship strategy which leverages technology and data capabilities continues to deliver value to all our stakeholders. This strategy not only helps us to acquire new primary relationships from competitors, but also continues to yield results as evidenced by increased up-selling and cross-selling of our ever-expanding range of trusted products and services across transacting, lending, insurance, investments and telecommunication solutions," adds Celliers.

Over the reporting period, FNB's efforts to consistently transform its operating platform saw a further increase in the adoption and usage of modern data driven digital channels and electronic payment options. Financial transactions on the FNB APP grew 52% for the period and have now surpassed the volumes on Online banking. Similarly, overall transactional volumes in debit and credit card swipes by customers in SA were up 13% with key sub-segments in Retail running even stronger growth trajectories.

Sales of products and services via FNB's various digital platforms in both assisted and unassisted environments saw strong take-up from customers. These regular digital interactions with customers allow the Bank to capture more customer data which ultimately assists in offering more targeted and personalised financial solutions, and more trusted and efficient customer interactions.

The 12% lift in profits in the South African business is attributable to the success in both Retail and Commercial with profits up by 11% and 13% respectively.

SA Retail's performance was driven by exceptional performance from the transactional business supported by increased lending activity primarily aimed at existing banking relationships. Revenue from the Investment and Insurance activities was also up strongly, benefitting from product, distribution and platform innovation over last few years. Recurring premiums (APE) in Life Insurance from over 3 million policies grew 37%.

The SA Commercial Segment profits continue to benefit from a digitally supported customer-centric relationship strategy which has resulted in elevated levels of customer acquisition, cross-sell and improved efficiencies. Continued investment was again made in the local economy with FNB-banked SME limits reaching R50bn and more simplified lending processes offered to SME's. Efforts in agriculture have similarly seen FNB customers benefitting from improved access to funding for emerging black farmers.

Bad debt performance held up well in a difficult set of macroeconomic conditions with the charge moving largely in line with book growth when the impact of the new IFRS9 accounting standard is normalised for.

Deposit growth across the Bank has remained strong with FNB improving its position as the largest retail deposit player in the domestic market. Product innovation digital activation and customer take-up have been key to gain traction in this environment. Similar trends are evident in Commercial where product innovation has led growth.

FNB rest of Africa, after a couple of difficult periods, saw profits lift 21%. The Bank remains committed to continue modernizing mature markets and building scale in new and emerging countries it entered more recently.

The excellent progress in migrating cash from branch to electronic and ADT/SmartBox solutions continues and has allowed the Bank to make further investments in reconfiguring the branch infrastructure and capacity towards sales and advisory activity.

FNB's approach to making banking more accessible saw eWallet volumes grow to over 20m transactions with value sent up more than 25% to over R12bn for the 6 months to December. The period also saw the introduction of eWallet eXtra, a mobile-only bank account which offers advanced functionality, with over half a billion Rand in funds transacted already.

"Our commitment to youth employment saw 700 youth from disadvantaged backgrounds in SA join the Group's internship initiative in the 6 months to December and this has now grown to over 900 people, with R110m committed for the financial year to support this initiative. We are grateful to our employees in FNB who continue delivering on our trusted helpfulness promise. We thank our loyal customers for pushing us harder each day and do not take their support for granted," concluded Celliers.

Over R12.8 billion sent from 22 million eWallet transactions in 6 months


20 March 2019: FNB has revealed that consumers have sent over R12.8 billion worth of eWallet funds from 22 million eWallet transactions processed between July and December 2018. This is a 25% year on year increase in the value of funds that consumers have sent via eWallet.

In addition, the Bank says its eWallet eXtra mobile bank account is also gaining momentum after amassing over 120 000 customers in less than six months after its official launch to customers in the second half of 2018. Transaction volumes on eWallet eXtra surpassed 680 000 by December 2018.

Chief Executive of FNB Consumer, Dr Christoph Nieuwoudt says the growing take up of eWallet and eWallet eXtra reflects consumers' appetite for more efficient means of banking.

"eWallet remains the best solution in the market for consumers who simply want to send and receive funds. However, our relatively new eWallet eXtra mobile bank account which can be taken up using any cellphone, offers consumers the ability to hold a digital account without paying the traditional account fee. More importantly, eWallet eXtra allows users to perform several functions including buying airtime, data bundles, electricity and goods at selected SPAR stores directly from their cellphone without a card," he says.

The wide range of use friendly features is one of the compelling reasons for consumers to increasingly use eWallet eXtra. This is complemented by features which provide users with full control by generating a PIN code to safely access their digital account. The mobile account has a daily spend limit of R3 000 and R24 000 per month, while cash withdrawals can be made at FNB ATMs or over the counter at participating SPAR stores and FNB acquired merchants.

In an increasingly competitive market for more efficient banking solutions, FNB is better positioned to compete, says Dr Nieuwoudt. "We offer a far more comprehensive range of banking solutions for the South African market and this means consumers have a wider range of solutions to choose from," he concludes.

Negative Oil Prices - Behind the Headlines


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Podcast

Best local stock picks in South Africa


05 May 2020 Spokesperson: Chantal Marx, Head of Equity Research from FNB Wealth and investments

Given the recent market volatility that has impacted South Africa, the FNB Equity Research team have collated insights on the best long-term and affordable local stocks to invest in now.

  • Naspers' (NPN) most notable investment is Prosus, which in turn has a large shareholding (31%) in Chinese internet giant Tencent.
  • British American Tobacco (BTI) remains one of the most defensive companies globally and we believe it will be able better able to weather high volatility in the market and the impacts of the Covid-19 outbreak.
  • Bidvest (BVT) is a diversified industrial company and thus not immune to the domestic South African economic weakness.
  • Spar (SPP) business will be relatively resilient during the Covid-19 outbreak and it should exhibit low profit volatility compared to its retail and industrial peers.
  • Sanlam (SLM) is our pick in the financial sector currently. The company has de-rated significantly during the recent global markets sell-off and it now trades at a substantial discount to its embedded value.
  • BHP Group (BHP) continues to operate quality assets that are highly cash generative even at low commodity prices, given their relatively low cash production costs.

We have attached the podcast and the SPM Best Ideas - April 2020 document for your perusal; and it can also be viewed on the following link: https://youtu.be/okV6ZTi-QbQ

FNB delivers strong interim revenue and customer growth


FNB Financial Highlights:

  • Overall profits up by 12%
  • Strong contribution from Retail & Commercial Segments in SA
  • Customer numbers now over 8.2 million in SA
  • Innovative Digital & Data platform leveraged effectively for growth and efficiencies
  • Acquisition, Upsell & Cross-sell delivered continuous lift in earnings
  • Targeted advances growth to existing client base
  • NIR up by 11% in a difficult market
  • Direct Axis alignment gaining momentum

Johannesburg, 12 March 2019 - FNB has once again produced excellent interim results with strong performances across all its businesses, reflecting the loyal support of customers across Retail and Commercial Segments in the countries in which the Bank operates.

Commenting on the results, Jacques Celliers, FNB CEO, said: "We are pleased to see that our investment in growth initiatives over the last few years continues to pay off. More importantly, our platform is well positioned for future growth despite the challenging macroeconomic conditions and competitive climate in which we trade across the nine countries."

"Our deliberate, consistent and customer-centric primary-bank-relationship strategy which leverages technology and data capabilities continues to deliver value to all our stakeholders. This strategy not only helps us to acquire new primary relationships from competitors, but also continues to yield results as evidenced by increased up-selling and cross-selling of our ever-expanding range of trusted products and services across transacting, lending, insurance, investments and telecommunication solutions," adds Celliers.

Over the reporting period, FNB's efforts to consistently transform its operating platform saw a further increase in the adoption and usage of modern data driven digital channels and electronic payment options. Financial transactions on the FNB APP grew 52% for the period and have now surpassed the volumes on Online banking. Similarly, overall transactional volumes in debit and credit card swipes by customers in SA were up 13% with key sub-segments in Retail running even stronger growth trajectories.

Sales of products and services via FNB's various digital platforms in both assisted and unassisted environments saw strong take-up from customers. These regular digital interactions with customers allow the Bank to capture more customer data which ultimately assists in offering more targeted and personalised financial solutions, and more trusted and efficient customer interactions.

The 12% lift in profits in the South African business is attributable to the success in both Retail and Commercial with profits up by 11% and 13% respectively.

SA Retail's performance was driven by exceptional performance from the transactional business supported by increased lending activity primarily aimed at existing banking relationships. Revenue from the Investment and Insurance activities was also up strongly, benefitting from product, distribution and platform innovation over last few years. Recurring premiums (APE) in Life Insurance from over 3 million policies grew 37%.

The SA Commercial Segment profits continue to benefit from a digitally supported customer-centric relationship strategy which has resulted in elevated levels of customer acquisition, cross-sell and improved efficiencies. Continued investment was again made in the local economy with FNB-banked SME limits reaching R50bn and more simplified lending processes offered to SME's. Efforts in agriculture have similarly seen FNB customers benefitting from improved access to funding for emerging black farmers.

Bad debt performance held up well in a difficult set of macroeconomic conditions with the charge moving largely in line with book growth when the impact of the new IFRS9 accounting standard is normalised for.

Deposit growth across the Bank has remained strong with FNB improving its position as the largest retail deposit player in the domestic market. Product innovation digital activation and customer take-up have been key to gain traction in this environment. Similar trends are evident in Commercial where product innovation has led growth.

FNB rest of Africa, after a couple of difficult periods, saw profits lift 21%. The Bank remains committed to continue modernizing mature markets and building scale in new and emerging countries it entered more recently.

The excellent progress in migrating cash from branch to electronic and ADT/SmartBox solutions continues and has allowed the Bank to make further investments in reconfiguring the branch infrastructure and capacity towards sales and advisory activity.

FNB's approach to making banking more accessible saw eWallet volumes grow to over 20m transactions with value sent up more than 25% to over R12bn for the 6 months to December. The period also saw the introduction of eWallet eXtra, a mobile-only bank account which offers advanced functionality, with over half a billion Rand in funds transacted already.

"Our commitment to youth employment saw 700 youth from disadvantaged backgrounds in SA join the Group's internship initiative in the 6 months to December and this has now grown to over 900 people, with R110m committed for the financial year to support this initiative. We are grateful to our employees in FNB who continue delivering on our trusted helpfulness promise. We thank our loyal customers for pushing us harder each day and do not take their support for granted," concluded Celliers.

FNB Business Innovation Awards 2019 entries open


29 April 2019: Following overwhelming responses from entrepreneurs, the FNB Business Innovation Awards (FNB BIA) have been extended to include two more categories, and now represent the entire business landscape in South Africa.

Adding to the Endeavor global category, FNB has further partnered with 10XE and the Township Entrepreneurs Alliance (TEA) to introduce SME and township entrepreneur categories, respectively.

Entries for all three categories were officially opened from 01 April 2019.

Mike Vacy-Lyle, FNB Business CEO says South Africa currently faces several challenges in terms of economic growth and the creation of sustainable jobs. FNB firmly believes that with adequate support from both government and the private sector, businesses, both big and small, have the potential to help the country achieve sustainable growth and development.

"FNB BIA celebrates entrepreneurship and recognises business owners who go the extra-mile to constantly innovate, think out of the box and reinvent themselves to remain relevant. Despite testing economic circumstances, these entrepreneurs continue to take risks, while remaining optimistic about growth," adds Vacy-Lyle.

The FNB Business Innovation Awards are aimed at all businesses, regardless of size, that can demonstrate real innovation with the potential to change the way their respective industries operate.

Businesses must exhibit high growth potential and have the capacity to add substantial socio-economic impact on the South African economy. This, partnered with job creation, outstanding business ethics, and goodwill are all among the many factors that will be reviewed by the selection panel.

Successful entries in each category will go through a selection process where the qualifying businesses will be reviewed and assessed by a selection panel, in each of the three categories, before they are shortlisted as FNB BIA Finalists for 2019.

Finalists will get an opportunity to present their businesses to a final judging panel, where a winner per category will be selected.

The winning businesses will each get business development support to the value of R1 million, to help them take their businesses to the next level. The winners will be announced and celebrated as the FNB Business Innovators of the Year 2019 at an esteemed award ceremony.

Entrepreneurs have until 30 June 2019 to submit their entries and they can do so on www.fnbbia.co.za

SA Rugby delighted to announce the extension of the FNB sponsorship


13 October 2020: SA Rugby and FNB confirmed on Tuesday that the South African banking giant has extended its sponsorship of the Springboks for a further five years.

The new agreement will stretch FNB's association with the team to eight years in total, with the bank's iconic acacia tree logo to continue to feature on the jersey above the playing number. Renewal discussions began before last year's Rugby World Cup and were concluded before the onset of the COVID-19 pandemic. "We are delighted to confirm FNB's continued association with the Springboks," said Jurie Roux, CEO of SA Rugby. "FNB have been a great partner since they joined us in the 2017 season and have supported us in many ways beyond a pure sponsorship. "They showed faith in the Springboks at a challenging time, but I trust and believe that we have been good for each other as the team has developed and enjoyed success in 2019.

"It's worth noting that our renewal conversations began long before the Rugby World Cup to underline the nature of the relationship." FNB's logo first appeared on the team jersey in the Castle Lager Rugby Championship Test against Argentina in Port Elizabeth in August 2017. Faye Mfikwe, FNB Chief Marketing Officer said: "We are honoured to continue our association with the Springboks. FNB is immensely proud of the team's achievements and commitment to unifying the country to foster social cohesion. "Over the last four years, our collective contribution has provided a platform for South Africa's youth to showcase their sporting talent on the global stage. "The Springboks not only inspire South Africans to have ‘hope' but also strive to building a stronger nation. We are looking forward to continuing a winning journey with the team." Roux added: "We look forward to continuing our successful relationship in the seasons to come. SA Rugby is proud to partner with one of the strong pillars of South African business."

Middle-income consumers spend 25% of take home income to pay interest on debt


15 April 2019: South Africa's middle-income consumers on average spend 25% of their take home monthly income to pay interest accumulated on debt.

This is according to FNB's analysis of money management behaviour of its Retail banking customers who earn between R7 000 and R60 000 per month. The Bank defines money management as one's ability to adequately allocate income to meet short-term, medium-term and long-term financial commitments and goals. FNB says its data paints a picture of households that are heavily reliant on unsecured debt to get through each month.

Raj Makanjee, FNB Retail Chief Executive says, "consumers who have not defaulted on a credit repayment in the last 18 months show better money management practices in general. These consumers are typically saving more compared to those who are in arrears and hold more secured credit, such as a home loan or vehicle finance as opposed to unsecured credit."

Christoph Nieuwoudt, FNB Consumer Chief Executive adds that, "in contrast, the reliance on debt is higher among consumers who have defaulted on three or more credit obligations in the last 18 months, with nearly 80% of monthly interest paid going towards servicing unsecured credit. Consumers are also taking on expensive forms of credit, from multiple providers and potentially at maximum interest rates."

FNB shares the following insights to give consumers important guidance on managing credit:

  • Pay off your debt: There is no getting away from this step, to get out of the debt cycle, you must cut back and get rid of unnecessary credit. There are a couple of ways to approach this; the first option is to pay-off smaller debts/loans first. Once these are paid off, you can redirect these payments towards bigger credit obligations. Alternatively, you can prioritise paying-off debt with the highest interest rate first. This will also help to save on interest over the long-term.
  • Consider debt consolidation: This enables you to consolidate your qualifying debt from various credit providers into one convenient and affordable long-term repayment. A typical example would be a solution such as FNB's Credit Switch, where you only pay one interest rate, one installment and one set of fees. This can potentially free-up some cash flow to enable you to save.
  • Manage your credit record: When credit providers assess your credit worthiness, they look at your overall behaviour of how you manage credit. Whether you have missed a payment on a store card, furniture retailer account or a registered micro-lender - it is all recorded on your credit profile. A money management solution such as nav»Money, can be handy in this regard because it is personalised to help you track your spend, available funds and credit status on your FNB profile
  • Avoid taking on unnecessary new debt: Taking on new debt once you have excess cash flow can be tempting but it's important to resist falling back into a debt trap. This is your opportunity to prioritise building a savings kitty for emergencies or saving up for a deposit to invest in an asset like property, which can generate long-term value.
  • Use credit to improve your future prospects: While we highlight concerns with using credit for consumption expenditure, sensible use of credit can create significant value. An analysis of our customers' earnings shows that education is a major driver among customers who seek unsecured credit and this generally adds significant value to long-term earnings prospects. Transportation is another key factor, therefore using vehicle finance to buy a car for personal or business is significantly less expensive than using an unsecured loan for this purpose. Lastly, property is the largest driver of savings for a proportion of households, hence using a mortgage to purchase property saves you from paying escalating rentals, instead your instalments remain fixed while the value of your investment will grow over time.

"Access to credit remains a vital asset for a consumer and has been a gateway to financial inclusion for most people. Unsecured credit can be an important buffer when household budgets are not sufficient to cover unforeseen expenses. However, we caution consumers to avoid being heavily reliant on unsecured credit for day-to-day consumption as this limits their ability to employ good money management practices such as saving for financial goals or investing for the long term," concludes Makanjee.

FNB is the first bank in SA to allow customers to Shop on App


8 April 2019: First National Bank (FNB) has launched a new functionality on its banking app that enables customers to shop directly from the app. The eBucks Shop, which was previously only accessible on the eBucks website, offers customers exclusive pricing for products ranging from tech and gaming to appliances and outdoor.

FNB is the first bank to offer this service on app, leveraging the growing usage of its digital platforms with over 2.8 million active app users in SA and more than 700 000 average visits per month to the eBucks Rewards tab. Shopping on the FNB app provides customers with the convenience and security of paying via FNB Pay, which allows customers to make purchases by selecting their pre-loaded qualifying FNB cheque or credit cards. This is much more secure compared to the traditional way of online shopping which requires customers to expose their details on third party platforms.

Raj Makanjee, CEO of FNB Retail says, "being at the forefront of innovation is always a focus for FNB, but it is also to help our customers by constantly finding solutions that improve the simplicity, convenience and safety of our banking ecosystem. Expanding the use of our banking platform to include the new shopping functionality is one of the different ways we are fulfilling our commitment by providing value and convenience as a money manager."

FNB Retail and RMB Private Bank customers can expect to get up to 40% off on exclusive deals available at their fingertips. They also have the ability to track their purchases and view their order history.

"We are very excited about offering this service to customers because it adds to the helpful capabilities available on the FNB app Under the eBucks Rewards tab, customers are able to see how they can earn more eBucks to achieve their objectives, view their complimentary slow lounge visits as well as register on the Entertainer app for free. Since the start of our partnership with The Entertainer, over 150 000 customers have registered for the value-added service with more than 80 000 deals redeemed to date," said Johan Moolman, eBucks Rewards CEO.

"In the near future, customers can expect to access more meaningful and integrated innovations under the Bucks tab on the FNB app to meet a range of lifestyle needs including travel," added Moolman.

To access and start shopping on the app, customers must have an existing eBucks account and have the latest version of the FNB/RMB app.

Follow these steps to shop on the app:

  1. Log in to the FNB app on your smartphone
  2. Select the Shop now icon under eBucks Rewards and follow the prompts.

RMB Private Banking clients should follow the same instructions through their RMB Private Banking app.

Over 60 000 FNB customers already reaping the benefits of The Entertainer partnership


16 January 2019 - FNB says in just two weeks after the start of its partnership with The Entertainer, over 60 000 FNB and RMB Private Bank customers have registered for the value-added service with more than 10 000 deals redeemed to date.

The partnership provides FNB Retail and RMB Private Bank customers with access to two-for-one discounted offers at various restaurants, beauty salons, health & fitness facilities and hotels for the duration of 2019.

Raj Makanjee, CEO of FNB Retail says, "the partnership is consistent with our retail strategy to provide customers with meaningful value which helps them with money management beyond their banking needs. Over the years, we have been expanding the value we add to our customers' lives and firmly believe that this offering emphasises our commitment to consistently introduce solutions which address the financial and lifestyle needs of our customers."

The Entertainer app users usually pay an annual fee of R495 per city. However, FNB and RMB Private Bank customers can reap the benefits without paying the annual fee for the duration of 2019 and the bank will explore future discounted subscription fees based on customer take up and service usage over the course of this year. This gives customers access to discounted offers across South Africa's major cities - Durban, Cape Town, Johannesburg/Pretoria saving them a total of R1,485. And what makes the deal even more attractive is that customers can access and use The Entertainer app when traveling abroad to the UK, saving an additional R541.30 in subscription fees.

"This is a value-added service which makes our customers' money go further. We recognise the unstable economic conditions we live in, where our customers are forced to be frugal when it comes to leisure activities. This exciting partnership with The Entertainer allows our customers to enjoy doing the things they love doing whilst making the most of their budgets," adds Johan Moolman, eBucks Rewards CEO.

To access and start using the App, you need to be an eBucks Rewards Member and have the latest version of the FNB app.

Customers can then follow these steps to register:

  1. Log in to the FNB App on their smartphone
  2. Select the Entertainer App icon under eBucks Rewards and follow the prompts to register.

RMB Private Banking clients should follow the same instructions through their RMB Private Banking app.

Next Steps:

  1. Customers will receive a welcome email from The Entertainer along with login details within 24 hours.
  2. Customers can download THE ENTERTAINER App from:
  1. Customers will need to log in and accept terms and conditions.

For a customer to view their free subscription once they have successfully logged in:

  1. Select My profile.
  2. Select Preference.
  3. Select My Products under My History

FNB partners with The Entertainer to help customers make their money go further


10 January 2019 - First National Bank (FNB) announced its partnership with The Entertainer, a lifestyle app that gives users access to two-for-one discounted offers at various restaurants, beauty salons, health & fitness facilities and hotels.

To take advantage of the deals, The Entertainer app users usually pay an annual fee of R495 per city. However, all FNB customers and RMB Private Banking customers can reap the benefits at no cost, giving them access to discounted offers across South Africa's major cities - Durban, Cape Town, Johannesburg/Pretoria saving them a total of R1,485. And what makes the deal even more attractive is that customers can access and use The Entertainer app when traveling abroad to the UK, saving an additional R541.30 in subscription fees.

"At FNB we are always looking for ways to add value to our customers' lives by making their money go further. We recognise the unstable economic conditions we live in, where our customers are forced to be frugal when it comes to leisure activities. This exciting partnership with The Entertainer allows our customers to enjoy doing the things they love doing whilst making the most of their budgets," said Johan Moolman, eBucks Rewards CEO.

The Entertainer, which was founded in 2001 in Dubai, expanded its products to South African customers in 2013

Jaegar Torrente, Head of Corporate Partnerships for The Entertainer in South Africa, said: "This partnership is an absolute game changer, not only for our business but for all FNB customers and RMB Private Banking clients who now have another way to save their hard-earned cash. We are very proud to partner with such innovative brands like FNB and RMB Private Bank".

To access and start using the App, you need to be an eBucks Rewards Member and have the latest version of the FNB app.

Customers can then follow these steps to register:

  1. Log in to the FNB App on their smartphone
  2. Select the Entertainer App icon under eBucks Rewards and follow the prompts to register.

RMB Private Banking clients should follow the same instructions through their RMB Private Banking app.

Next Steps:

  1. Customers will receive a welcome email from The Entertainer along with login details within 24 hours.
  2. Customers can download THE ENTERTAINER App from:

Customers will need to log in and accept terms and conditions.

For a customer to view their free subscription once they have successfully logged in:

  1. Select My profile.
  2. Select Preference.
  3. Select My Products under My History

South Africa's consumers are 'tapping and scanning' to pay, says FNB


11 November 2019 - FNB customers have made over R14 billion in 'tap' or contactless payments in the twelve months to June 2019, with continued month-on-month growth. This upward trend points to growing appetite for the convenience of contactless payments in South Africa's consumer and business sectors.

The Bank's customers processed over 60 million 'tap' transactions over the 12 months using their contactless enabled FNB Credit and Debit Cards. In excess of 46 million transactions were on Debit Cards while Credit Cards accounted for nearly 20 million.

Chief Executive for FNB Retail, Raj Makanjee says, "All our customers have contactless enabled cards, and this contributes significantly to our efforts to empower customers with convenient and safer ways to pay. Our goal is to minimise reliance on cash by ensuring that customers have access to payment options that accommodate their day to day needs".

"Contactless cards allow users to tap against a contactless reader to pay for goods and services without the card leaving their hand, resulting in added convenience and security. This technology protects our customers against card related fraud such as card skimming, as they no longer have to insert their card into the point of sale device" says Makanjee.

This time last year, FNB was the first financial services provider in SA to introduce a contactless-enabled ATMs. This means the bank's customers can also perform transactions at its contactless-enabled ATMs without inserting their card.

Earlier this year, FNB also introduced Scan to Pay on the FNB App, enabling customers to simply make payments by scanning a QR Code. Scan to Pay usage has seen double digit month on month growth since its launch, complimenting a wide range of convenient Digital Payment alternatives such as FNB Pay on the FNB App, Samsung Pay, FitBit Pay and Garmin Pay.

"With Black Friday coming up and consumers preparing for a shopping spree, we expect the typical seasonal peak in 'tap' payments, as well as Scan to Pay QR code payments on popular online merchants. Merchants which offer customers convenient forms of payments are able to process transactions faster, reducing queue times and risk of basket abandonment," he adds.

"FNB banked customers who want to avoid long queues, whilst enjoying a high level of security, can use our FNB App to buy goods from the comfort of their home using Scan to Pay or their online secure enabled bank cards. In addition, our customers have access to exclusive deals on our eBucks platform and can realise additional value using their eBucks to pay. The eBucks platform makes use of FNB Pay, a convenient and secure checkout process requiring no card detail capture. In the last quarter, over R35 million was processed using FNB Pay Checkout on the eBucks platform." concludes Makanjee.

For more information contact: FNB Corporate Affairs, fnbmedia@fnb.co.za

FNB launches Easy Zero, a no monthly fee digital account with a card


14 November 2019 - FNB today launched Easy Zero, a fully-fledged digital bank account with a card to allow customers to transact easily, conveniently and safely without paying a monthly fee. The mobile account was formerly known as eWallet eXtra.

The revamped digital account will now have a branded FNB bank card, providing customers with free card swipes, cost-effective transactional and ATM cash withdrawal fees. The convenience of a card now gives customers more options to access their money. In addition, customers will also get free prepaid purchases and free cash deposits of up to R1 500 per month.

FNB Easy CEO, Philani Potwana said, "We are aware of the day-to-day financial pressure that our consumers face, and Easy Zero is a direct response to their needs. The account is in line with our strategy to broaden financial inclusion to the unbanked and underbanked. We believe that the ability to operate the account digitally will allow customers to operate it at virtually no cost or minimal cost depending on transactional behaviour."

"We see Easy Zero being a digital bank account of choice for customers who do not have regular income or have limited banking needs. This is partly the reason debit orders are not allowed on the digital account as customers in this segment have limited debit orders. However, for those customers that have a need for debit orders they can still use our competitively priced Easy PAYU and Easy Smart Bundle accounts," he adds.

Through Easy Zero, customers will be able to easily send money to anyone with a valid SA cellphone number, skip the queues to pay people and accounts. Easy Zero account holders can also view their bank account balance and transaction history on their mobile phone at any time, from anywhere.

"The success of our digital account, with over
140 000 active customers, shows that anyone who owns a mobile phone can be banked in minutes using a mobile device. This showcases our ability to adapt to the ever-changing consumer landscape to cater for the needs of customers through platform innovation," concludes Potwana.

FNB is also offering Easy Zero digital account holders a toll-free number (0800 079 599) where easy customers can call for help on any of their banking needs. To open an Easy Zero account simply dial *120*277# on your mobile phone and follow the prompts.

FNB launches two ground-breaking offerings to help SMEs in South Africa


15 October 2019 - FNB Business is living up to its commitment to help South African entrepreneurs by launching new products and solutions that it believes will help increase the level of SME activity and create a culture of entrepreneurship in the country.

n response to the barriers faced by micro, small and medium-sized businesses in South Africa, together with general economic challenges such as low economic growth and high levels of unemployment, FNB is launching a new digital app-based entrepreneurship learning programme (Fundaba) and a digital no monthly account fee business bank account (First Business Zero) to address some of these challenges.

Mike Vacy-Lyle, FNB Business CEO says, "As a bank, it is the business owners in this country who inspire us daily to innovate and find meaningful solutions that are truly impacting on the day-to-day running of their businesses and bottom line. We are proud that we can offer helpful solutions that provide value and help enable the development of SMEs in South Africa. As an entrepreneurial organisation, we strive to truly understand the needs of our customers."

Fundaba

Fundaba is free interactive e-learning business education platform that has been developed inside the FNB banking app for convenient access. It is a first-of-its-kind offering in South Africa and comprises multimedia content such as videos, podcasts, quizzes, templates and tools for all FNB customers to learn about entrepreneurship and running a business.

The Bank has conducted extensive research and worked with hundreds of local business owners and mentors to provide users with critical knowledge and practical help to assist them as they navigate the business journey; from incubating a business idea, to starting, running and growing a business in South Africa. SMEs can also actively share and provide feedback on various educational chapters to constantly increase the effectiveness and relevance of the content.

The name Fundaba was created through the combination of the South African words "Fundi" (colloquially means "expert") and "Indaba" (discussion) as these words best describe the aspirations of the product and the impact that FNB hopes to achieve through its use.

As a leading business bank in South Africa, a core part of our strategy is to help develop SMEs by supporting entrepreneurs through their journey, and a key part of this journey is entrepreneurship knowledge and skills which we believe can help on a large-scale using our digital infrastructure" says Jesse Weinberg, head of the SME Customer Segment at FNB.

The Fundaba educational programme consists of 12 modules across 4 lifecycle stages of a business (incubate, start, run and grow) and follows a South African entrepreneur's journey as he builds his first business - 'Lebo's Bakery'. All audio and video content is available in five local languages including, IsiZulu, isiXhosa, Sesotho, English and Afrikaans.

"Through our research and first-hand engagements with SMEs, we discovered that there is a knowledge gap amongst many existing and aspiring entrepreneurs when it comes to starting, running and growing a business. We feel we have a role to play to help close this gap, and at the same time help catalyse a country-wide dialogue of increasing entrepreneurship skills and knowledge sharing" adds Weinberg.

First Business Zero

First Business Zero is a digital on platform business bank account offered by FNB from 1 November 2019. The offering is designed specifically for sole proprietor businesses with an annual turnover up to R5 million and can be opened on the FNB App within a few minutes using our "Selfie" process to identity and verify the user.

The key features of the First Business Zero proposition include no monthly account fee, unlimited free POS card swipes, inter-operable QR code for accepting payments, linked saving pocket to ring-fence savings and earn interest, and an FNB Connect SIM card that includes free data, minutes and SMSs (up to 100mb data, 30 voice minutes, 30 SMSs).

Businesses will also get free access to FNB Business' unique suite of free value-added services, including Instant Accounting software, Invoicing, Cash Flow and Payroll.

"FNB has invested billions of Rands in developing a business banking platform that offers holistic and integrated financial solutions to all types of businesses. To maintain our market leading position, it is essential that our business model continually evolves to provide relevant solutions for customers, from learning how to start, run and grow a business, to registering a company, opening a bank account, applying for credit and managing the businesses daily affairs," says Vacy-Lyle.

During the past financial year to June 2019, FNB Business banked SME lending reached more than R40bn on the back of simple, scored, digital lending, with a credit approval taking less than 3 minutes in many instances. The bank further extended over R8bn to women led businesses during the same period.

"Better use of data, understanding client context, easier credit applications through scoring and digitisation, as well as lower origination costs, have led to better, deeper credit underwriting and quicker turnaround times. This has made borrowing from FNB Business a much better experience with better pricing," adds Vacy-Lyle.

"Continued digitisation of the commercial banking experience, at scale, has resulted in improved efficiencies and a lower cost of banking. This benefit of scale will be passed on to the customer through more affordable banking solutions like these. FNB Business remains committed to providing efficient and differentiated customer experiences, inside platform. We believe in offering ongoing deep value to our customers though a wide and differentiated digital experience" concludes Vacy-Lyle.

FNB Business Innovation Awards to crown 2019 winners


06 November 2019 - Fifteen of the most innovative and dynamic businesses in South Africa will be contending for the much sought-after accolade of the 'FNB Business Innovator of the Year 2019' during a gala dinner to be held on 21 November at the Galleria in Sandton.

FNB Business in association with Endeavor South Africa, 10XE and Township Entrepreneurs Alliance (TEA), has shortlisted five businesses across each of its FNB BIA categories namely, R0 - R5 million turnover, R5 million plus and R10 million plus turnover.

Three businesses, amongst the fifteen, will be crowned as the FNB BIA 2019 winners.

Mike Vacy-Lyle, FNB Business CEO says, congratulations to all the businesses that have made it this far. It was certainly not an easy decision for the judges having received record-breaking entries from highly innovative and talented entrepreneurs across various sectors of the economy. These entrepreneurs possess the highest potential to grow and scale their businesses to the next level.

"Encouraging innovation across all levels of business can help South Africa to be more competitive and address its long-term development goals. The businesses identified have a lot of scope to grow and innovate in response to slowing growth and tough local business conditions in the country," adds Vacy-Lyle.

Finalists:

R0 - R5-mil turnover:

  • Tshireletso Mokate - Camping RetrEats (Rox Media Pty LTD)
  • Euginia Mokone - Addnum Holdings Pty LTD
  • Nonhlanhla Joye - Umgibe Farming Organics and Training Institute
  • Luvuyo Ndiki - Red Village Trading
  • Jabulani Glen Dlamini - Sidingulwazi Environmental Centre Holdings

R5 - R10-mil turnover:

  • Siya Ntutela - Zande Africa Pty LTD
  • Corrin Varady - IDEA Digital Education
  • Muhammad Simjee - Marc1 Dot Com Pty LTD
  • Ashleigh Wainstein - Social Places
  • Jasper Pons - ScanMan Asset Management Software Pty LTD

R10-mil + turnover:

  • Phillipa Lee Geard - RecruitMyMom Pty LTD
  • Lynton Peters - OneCart Pty LTD
  • Tinashe Ruzane - Flex Club
  • Benjamin Meltzer - Benjamin Meltzer
  • Warren Myers - AURA

Independent judges for this year include, Jason Goldberg, Director at Edge Growth; Alison Collier, Managing Director at Endeavor South Africa; Bulelani Balabala, Founder of TEA; Ntsiki Biyela, Director at Aslina Wines; Ingrid Osborne, Managing Director of Saryx Enginering and Itumeleng Mpatlanyane, Founder of Nkukhu Box.

"Having introduced additional categories to accommodate the entire business landscape will bring us much closer to working with SMEs across different paths in South Africa, resulting in them creating much-needed employment in the country," concludes Vacy-Lyle.

Media who are interested to attend the FNB BIA gala dinner on 21 November 2019 at the Galleria in Sandton can contact Sam Mashele: Sam.Mashele@fnb.co.za or 0877365997

Notes to editors

Profiles of the businesses:

  • Tshireletso Mokate - Camping RetrEats (Rox Media (PTY) Ltd) offer a full relaxation and adventurous weekend in one - Private chef, camp sites and equipment, and adventure activities. They tailor make experiences to suit the needs of the requester.
  • Euginia Mokone - Addnum Holdings (PTY) Ltd is the managing company of all Education Centres from Pre-School, Primary School & Training centres for Corporate and communities. This independent & accredited English medium institute provides innovative and high-quality learning foundation that seeks to prepare learners properly for the complex demands of the 21st Century knowledge.
  • Nonhlanhla Joye - Umgibe Farming Organics and training Institute promotes the idea of a sustainable local food system through the cost-effective and environmentally friendly Umgibe growing system. More than 58 local farmer co-operatives have already received access to the system, and Umgibe offers a platform that enhances farmers' market access, boosting local income generation.
  • Luvuyo Ndiki - Red Village Trading uses 3D printing technology to manufacture a unique drinking cup using a polylactide (PLA) filament, which is a biodegradable and bioactive thermoplastic aliphatic polyester derived from renewable resources such as sugarcane and corn-starch.
  • Jabulani Glen Dlamini - Sidingulwazi Environmental Centre Holdings is a one stop service provider, encompassing a total waste management solution collecting a wide range of recycled material namely: old vehicle tyres which are sold to the Department of Environmental Affairs.
  • Siya Ntutela - Zande Africa (Pty) ltd provides last mile distribution and credit to Spaza shops. Over 200 South African Spaza shops close every year due to lack of finance, limited distribution channels and stock outs. Through technology enabled systems they provide access to inventory and purchase order financing for small businesses.
  • Corrin Varady - IDEA Digital Education aims to create globally-competitive students across Africa, Middle East and South East Asia with engaging and outcome-driven content to improve the transformation and democratisation of education to historically marginalised communities. They provide high quality, core-curriculum and personalised digital education content for students and teachers. The IDEA content is interactive, data-driven and digital, covering all grades in Science, English and Mathematics.
  • Muhammad Simjee - Marc1 Dot Com Pty Ltd is the world's first IoT Point of Sale (POS) system. Marc1 is a complete hardware and software solution that incorporates an IoT device into the POS system which boosts retailer sales in real time at the point of purchase by using artificial intelligence to analyse various data and recommend sales boost pitches.
  • Ashleigh Wainstein - Social Places is a Marketing Technology company that specialises in location-based marketing and reputation management for multi-location and/or franchised brands. They offer an array of software products that assist clients to define and manage their local marketing strategy. This includes managing online listings, centralising online reviews and enabling local branches to tailor their messages to suit their specific target audience.
  • Jasper Pons - ScanMan Asset Management Software (PTY) LTD "ScanMan"/ Drone Scan has developed software that enables the rapid and accurate scanning of inventory in large warehouses. The system can be fitted to a drone that enables rapid scanning of products on high shelves, allowing a drone operator to count as much stock in a warehouse in two days as a team of 80 people with handheld scanners and reach trucks can count in three days.
  • Phillipa Lee Geard - RecruitMyMom (PTY) Ltd is an online recruitment company specialising in part-time employment for skilled women.
  • Lynton Peters - OneCart (PTY) Ltd is a premier, online delivery service focused on groceries, pharmacy, stationery, pets and pool.
  • Tinashe Ruzane - Flex Club is a smart platform that matches investors to drivers for ride-hailing services and provides financing to drivers to purchase their cars.
  • Benjamin Meltzer: Benjamin Meltzer - Early pest and disease detection enabled by drone imagery and artificial intelligence.
  • Warren Myers - AURA is a revolutionary approach to security and armed response in South Africa. AURA's strategy is to aggregate the armed response industry nationally, into one dynamic response organism, providing clients direct access to our rapid response network.

Glimmer of hope despite a tough economic year, says FNB


19 November 2020, Johannesburg: Following the South African Reserve Bank's (SARB) decision to keep interest rates unchanged, FNB confirms it will keep its prime lending rate at 7%. FNB CEO Jacques Celliers says, "2020 was one of the toughest years in our economic history, however, the recovery of economic activity among our customers provides a silver lining. For consumers and businesses this is a time to rebuild financial reserves and to look for new opportunities." "As part of our commitment to help customers, we have introduced new features to our platform based nav» functionality on our App. Customers now have detailed and easy to use smart budgeting tools and we offer additional support for SMEs through a marketplace which links businesses with over 3 million potential customers who use our App. Our marketplace is expected to scale quickly from the 1500 active banked businesses with a potential to generate considerable benefits for businesses. As we approach the festive season, we also urge consumers to spend responsibly and to consider safer ways to shop," adds Mr Celliers.

Chief Economist at FNB, Mamello Matikinca-Ngwenya, says "The current economic shock has kept demand in the economy very low, and as a result inflation has remained contained. The central bank has responded decisively to these shocks. The SARB has reduced the repo rate significantly since the onset of the crisis, providing much needed relief to consumers and business. We are not surprised the bank opted to keep rates on hold at this meeting. However, should inflation surprise to the downside it, may be open to more cuts in the year ahead."

"We expect inflation to remain well contained within the inflation target over the medium term. At the moment, we assess the risks to the inflation outlook to be balanced. In the absence of any severe shocks monetary policy should remain accommodative over the medium term. We are, however, concerned about the medium-to-long-term growth outlook. In the absence of the implementation of growth enhancing measures, the growth outlook beyond 2021 leaves much to be desired. This will have negative implications for public finances; while the MTBPS sets forward targets to reduce expenditure we are concerned that government may not to be able to reach these targets. High government debt and weak GDP growth continue to present material risks," adds Matikinca-Ngwenya.

ENDS

Notes to the editor:

Through the FNB App, customers can now intuitively manage their money through nav» Smart Budget to help them spend less than they earn, access vehicle finance from WesBank, as well as access deals and discounts from leading car brands via nav» Car. nav» Home services now offers a new Marketplace to enable SMEs to offer services such as electrical, building, plumbing and alternative energy to over 3 million users of the FNB App. Individual customers can also select from over 1 500 SMEs that are already part of the marketplace.

FNB expands the list of international brands where investors can get exposure from as little as R10


01 December 2020 - Following the overwhelming response to the listing of Exchange Traded Notes (ETNs) on its platform, FNB is expanding the list of international companies available by adding Adobe, Ford, Activision Blizzard, Berkshire Hathaway, Goldman Sachs, JP Morgan, PayPal and Visa.

The expanded list is in addition to Apple, Amazon, Facebook, Microsoft, Alphabet (Google), Netflix, Tesla, Coca Cola, and McDonalds. This means individual and institutional investors can still invest for as little as R10 across 17 global brands and the MSCI World ETF.

According to Bheki Mkhize, CEO of FNB Wealth and Investment Solutions, the companies that have been added as phase 2 of the Bank's ETN offering have been carefully selected based on their well-established global leadership positions in their respective industries, as well as their ability to diversify the investment opportunities on offer.

"Covid-19 provided an important reminder of just how important it is to diversify your investment portfolio, not just geographically, but also across industries and sectors," he explains, "and the inclusion of these companies, many with a tech and financial services leaning, provides investors in these ETNs with an even more balanced selection of leading global companies."

Mkhize points out that the quick addition of the next batch of global investment opportunities to the ETN offering is in response to the overwhelmingly positive response to the offering by South African investors.
"In the almost two months since the ETNs were launched thousands of South Africans across all income levels have taken advantage of the low R10 per unit investment requirement to gain access to instruments that track the movement of some of the world's most significant organisations."

Mkhize says that, while investment levels in the first 10 global companies have been good across the board, the clear winners in terms of popularity among South African investors have been Tesla, Amazon and Microsoft (in that order).

Mkhize says that FNB is hopeful that the latest companies that have been added to the ETN investment universe will spur additional interest in the coming months, particularly given the financially challenging 2020 that most have experienced.

"The very low minimum investment requirement mean that these ETNs make the benefits of global investment accessible to the majority of South Africans, even those who may previously not have considered investments of any sort due to perceptions of share investing being too expensive," he explains, "but the innovative structure and low costs of these ETN investment options mean that almost anyone over 18 years of age can give themselves or their loved ones the gift of a better future this festive season - and we all need that after the challenging financial year we have just survived."

The FNB ETNs are listed on the JSE, which means they can be accessed through any stockbroker or online share trading platform. However, clients of FNB who invest through the bank's own share investment platform, whether online, through the FNB app, or directly with an FNB broker, will also earn eBucks Rewards points, thereby further enhancing the value of the investment.

More information about the FNB Exchange Traded Notes offering is available at FNB.co.za, or from any certified stockbroker.

ENDS

Note to editors:

The Exchange Traded Notes are not a direct investment in offshore shares, but rather a local investment vehicle that directly tracks the performance of the global companies involved. This means that investors don't need to buy whole shares in these companies (many of which are valued at hundreds of dollars) but can instead buy the number of ETNs they can comfortably afford, in multiples of just R10. Since these units are denominated in Rands, investment in them does not impact on an individual's annual R1 million foreign investment allowance. Despite this, investors still have the option to track the performance of the underlying investments they select in dollar value if they want to, which means their investment could also benefit from any future rand weakness.

For media queries or interviews contact:

Philisiwe Kobeli
Cell: 071 235 5975
E-mail: Philisiwe.Kobeli@fnb.co.za

Lekha Gosai
Cell: 082 614 9110
E-mail: lgosai@fnb.co.za

2021 represents a new start despite second wave


2021 represents a new start despite the second wave, says FNB

21 January 2021, Johannesburg: Following the South African Reserve Bank's (SARB) decision to keep interest rates unchanged, FNB will maintain its prime lending rate at 7% and will review its position after the next SARB Monetary Policy Committee meeting in March 2021.

FNB CEO Jacques Celliers says, "The Covid-19 pandemic continues to impact our society due to the second wave of infections. As a result, we all have a responsibility to unite in protecting people's health and livelihoods. By creating a safer environment for all, businesses that are closed under lockdown can trade, people can earn a living, and kids can go back to school. We remain concerned about the rebound in economic growth this year, and we hope the news of vaccines arriving later this month will provide relief for healthcare workers and the overburdened infrastructure. We also look forward to seeing the vaccination program expanded to the rest of population."

"As a business, we are humbled to play our part by providing essential services to help customers manage certain aspects of their lives and finances. This is a consequence of our ever-expanding digital platforms for customers to manage savings, credit, budgets, or pay a traffic fine via our App. We also use our platform to connect SMEs with customers to stimulate economic activity. Similarly, we have been expanding our invest services to offer customers exposure to global stock markets from just R10. We remain committed to our partnership with customers and society in these tough times," adds Celliers.

Chief Economist at FNB, Mamello Matikinca-Ngwenya, says "While the SARB may have decided to keep the repo rate unchanged at 3.5%, we believe there is room for further easing. The current economic shock has kept demand in the economy very low, and as a result, inflation has remained firmly anchored below the midpoint of the target band. While expected to tick up in the coming months (mainly pushed up by food, electricity, and water prices), inflation should remain well contained over the medium term. We expect inflation to average 3.8% in 2021 on the back of lower insurance and rental inflation."

"High-frequency data shows that while the economy continued to expand into 4Q20, the recovery trend was losing steam. Importantly, these trends emerged before the implementation of level 3 lockdown restrictions in December. This is in line with our expectation of a moderate rebound in SA's GDP growth (around 3.2% y/y this year), from a deep contraction (around -7.2% y/y) in 2020. Risks to this view are a third wave of the virus, which will lead to further lockdown measures and frustrations to rolling out vaccines," concludes Matikinca-Ngwenya

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Simple habits to help drive your children's behaviour with money


13 April 2021 - Supporting your children with their physical, emotional, social, financial and intellectual development from a young age is critical before they mature into adulthood.

tRaising children is very rewarding, but it does come with its fair share of challenges. "I am motivated by a famous African proverb that ‘Train a child the way he should go and make sure you also go the same way'. This is the cornerstone to enjoying parenthood and the reason that I have become intentional about what I teach my child including their behaviour with money," says Aneesa Razack, CEO of Share Investing at FNB Wealth and Investments.

tRazack recommends the simple habits below to help drive your child's behaviour with money, adding a bit of fun and creativity along the way. "Being creative in your money management lessons will help in driving the importance of money to your kids and this will also help them remember in years to come," says Razack.

tTalk to your children about money This is the first step in helping your children understand the concept of money or money management. Use practical day-to-day scenarios and try not to overwhelm them with information. Show your children how to map out a budget Involve your children when you put the monthly family budget together. According to Ester Ochse, Product Head, FNB Money Management, "A great start to help your children track where their money is going, is by having an up to date budget. Your children's budget should include their savings, expenses and those events that they enjoy doing like going to the movies, purchasing toys, books etc. This will be their ultimate blueprint which will help guide you through each month and year."

tThrough this process you can help teach your children the difference between needs vs wants. This will help in demonstrating value for money and it will also help them decide if they should purchase toys, sweet or if it should be included in their savings budget. Try to strike the balance between show and tell, coupled with fun visuals to illustrate the importance of a budget.

tStart a coin collection or coin jar A very traditional way of saving but is a great way to help drive your child's saving and money behaviour. Motivate your child to start collecting coins, storing them in a glass jar and keeping record of his/her savings through a money journal which can be updated on a regular basis. If they are older, you can go through the money journal and help them understand the value of their savings over time. To give your children an overview of the origin of money you can visit the South African Coin Mint Museum.

tMake savings a family project One of the easiest ways to get the savings project started is with their pocket money or their monthly spend allowance - if your budget allows. Set goals and encourage each family member to save up for your family project - such as a Mother's Day, Father's Day, or birthday gift for your siblings. Savings don't have to be for something specific all the time. You can even save and contribute towards a winter soup drive for the disadvantaged. This is also a great time as it allows everyone to bond as a family; whilst learning about the value of spending money wisely. Help your children open a bank account or an investment account Encourage your children to put their money into a savings account. You can help your child or teenager track and make sure their money is safe. Another worthwhile recommendation is to get your teenager exposed to start investing in Unit Trusts, Exchange Traded Notes (ETNs) or shares for as little as R10 from global brands such as Apple, Amazon, Facebook, Microsoft, Alphabet (Google), Netflix, Tesla, Coca Cola, and McDonalds. Through ETNs, your children can get exposure locally to US stocks on the JSE allowing them to have access to a variety of wealth creation assets which they can acquaint with a young age for their long term goals and this will be beneficial in propelling their investment journey. "Instilling healthy money management behaviour is important for your children and yourself. It not only lays the foundation for the future but it's an incredible journey that you can build today and for many years to come," concludes Razack.