FNB's biometric mini-ATM. Picture: SUPPLIED
A shift to digital banking is already happening, hastened by the pandemic
In this edition of Business Day Spotlight, we discuss how entry-level banking at FNB has been affected by Covid-19 and its implications for the wider economy.
Our host Mudiwa Gavaza is joined by Philani Potwana, CEO of FNB Easy; and Robert Gwerengwe, CEO of FNB Gold to unpack the issues.
The team provides insight on the changing spending and savings patterns in entry-level banking in the past four months and what the FNB is doing to address to some of the challenges faced by customers.
The discussion begins with the team explaining the difference between their two segments.
Potwana, whose Easy unit takes care of FNB’s clients with annual incomes of up to R120,000, says the crisis has left many of their customers with reduced incomes, and the bank has chosen to waive many of its transactions fees as a means of assistance.
Gwerengwe says the Gold unit, which takes care of FNB’s clients with incomes from R120,000 to R300,000 a year, has also seen a reduction in earnings during this period. This is driven by job losses that have shifted buying patterns away from luxury items to essential goods and services.
FNB has had a reputation of being digitally focused for more than a decade. Potwana says the crisis will mark a fundamental shift in adoption of digital banking services with their app usage rising more than 20% since the lockdown began.
SA tends to be a country of spenders not savers, which is one of the things made most apparent by the lockdown. Gwerengwe says consumers are likely be more savings-focused than spending-focused in the years to come as the scars of the pandemic crisis force many to consider having more reserves on hand for emergencies.
Discussion points include the future of digital banking and the role of physical retail bank locations.
