Stokvels are becoming safer and more transparent as members no longer need to meet physically to transfer cash, according to FNB.
FNB, which services 120,000 stokvel savings clubs in South Africa, this week unveiled its “enhanced” digital offering for stokvels, helping improve accessibility to their cash.
The bank said it is making it easy for them to save, while removing the safety risk associated with travelling to branches.
Himal Parbhoo, FNB CEO of FNB Cash Investments, said: “We’ve completed the digital stokvel account journey and now everything from account opening through to transactions and payouts can now be done digitally.”
This makes it far easier for stokvels to be established and managed, regardless of where founders and members are located, he said.
“The enhanced offering enables members to complete transactions, including opening and depositing cash remotely as opposed to inside branches.”
By removing the logistical hurdle of coordinating branch visits, we’re making it much easier for people to take that first step of opening their stokvel account with a trusted financial institution.
— Lytania Johnson, FNB Personal Segment CEO
Whereas the previous three signatories were required to travel the branches to send and deposit cash, they now can do so remotely.
While South Africa has a low savings culture, many are part of stokvels the savings clubs in which community members club together to save and invest in anything from groceries, school fees and funerals.
Lytania Johnson, CEO FNB Personal Segment, the new digital account opening capability addresses what has historically been a critical barrier to entry.
“Many stokvel members, particularly in rural areas, faced challenges travelling to FNB branches,” she said. The digital account opening process now brings the bank to customers, rather than requiring them to come to the bank.
The timing of the digital account opening capability also coincides with peak stokvel account opening season, as January through March every year typically sees the highest volume of new stokvel account registrations, said Johnson.
“The timing is deliberate. This is when people are thinking about starting and joining stokvels. By removing the logistical hurdle of coordinating branch visits, we’re making it much easier for people to take that first step of opening their stokvel account with a trusted financial institution.”
TimesLIVE
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