FNB dials into mobile business

12 June 2015 - 02:17 By Rea Khoabane and Yolisa Mkele

Can a zebra change its stripes? Perhaps not, but brands can, and they do. The latest example of this is FNB, which, on Monday, will go from being just a bank to also being a mobile cellular network.The bank has long been known for thinking outside the box, but its latest venture will be a test of just how far the brand can stretch."Our primary objective is to use the mobile offering as another way to add value to our customers' lives."We aim to reward our customers for banking with us, and to integrate our customers into the FNB ecosystem," said FNB Connect CEO Ravesh Ramlakan.There will undoubtedly be teething problems at the beginning, as customers come to terms with the fact that their bank is about to go head-to-head with Vodacom, Cell C and MTN."I think the biggest problem they'll have is trying to take market share from three key players in the field," said independent brand strategy consultant Lerato Moleko.Fortunately, FNB will have an advantage that smaller entrants like Virgin Mobile didn't have, a customer base of two million people."Mobility and banking innovation are synonymous in the minds of FNB customers."We are excited to launch a South African first for banking via FNB Connect as the next step in our digital evolution," said Jacques Celliers, CEO of FNB.The bank believes that it is well placed to deal with any teething troubles that may arise."Being helpful is in our DNA. As such our challenge is to continuously deliver on this expectation that customers have by providing new services and products to connect them with the enigma of FNB's innovation," said Ramlakan.Perhaps the biggest question mark lies over what impact it will have on the FNB brand as a whole if the mobile venture were to sink like the Titanic.Moleko doesn't think that this would be a train smash."If it were to fail I don't think it would have any kind of major impact on the brand as a whole."At worst it would make a good case study about how far you can stretch a brand," he said.What FNB's new mobile network will also have in its favour is pricing. As it stands it will have the lowest peak rate for voice call at 95c per minute while Vodacom currently charges R2.99, MTN R2.89, 8Ta and Cell C R1.50 and Virgin Mobile 99c.The data per megabyte rates are similar to those of Vodacom and MTN but more expensive than 8ta, Cell C and Virgin Mobile...

There’s never been a more important time to support independent media.

From World War 1 to present-day cosmopolitan South Africa and beyond, the Sunday Times has been a pillar in covering the stories that matter to you.

For just R80 you can become a premium member (digital access) and support a publication that has played an important political and social role in South Africa for over a century of Sundays. You can cancel anytime.

Already subscribed? Sign in below.



Questions or problems? Email helpdesk@timeslive.co.za or call 0860 52 52 00.