How Fnb's Digital Innovation Is Reshaping The Future Of Stokvels In South Africa

Source: Supplied. Himal Parbhoo, chief executive officer of FNB Retail Cash Investments.

Himal Parbhoo, chief executive officer of FNB Retail Cash Investments says, “More people are joining stokvels to make saving easier and safer.

The bank has the data to support this assertion, with total inflows in its FNB Stokvel accounts growing to R13.3bn by December 2024, up 66% from the R8bn that flowed into these accounts in December 2023.”

The data further revealed that more people are also joining stokvels through FNB, with the total number of FNB Stokvel Account members growing by 34% just one year.

Stokvels are becoming increasingly popular because people are recognising that when they team up with others - whether colleagues, business partners, friends or family members - they are more successful in their saving efforts. The strong growth in FNB Stokvel account inflows shows how South Africans are working together to save, even when money is tight.

Parbhoo says that a lot of the growth in FNB’s Stokvel account members and deposits is being driven by the bank’s digital account innovations. The FNB Digital Stokvel account, launched in 2020, makes it easier and safer for groups to manage their money better and makes it safer for members to contribute and share savings without paying cash handling fees.

This has helped our customers save a total of around R168m in cash withdrawal fees and paid over R253m in interest, helping customers save over R421m – money that stays in their accounts and continues to grow. Members can further make contributions and share money electronically, avoiding the risks of cash while saving on fees.

Group wealth growth

Another benefit of the FNB stokvel account is that all savings earn interest. This means members get more than just their contributions back – they also get extra money from competitive interest rates, helping them reach their goals faster.

"Our bank's digital stokvel accounts have grown quickly, with savings up by 84% to R10.7bn, compared to R5.8bn the year before,” says Parbhoo.

Cebile Magongo, strategic business developer at FNB Retail Cash Investments, adds that the convenience of digital stokvels is a significant drawcard.

"With FNB’s Digital Stokvel accounts, members spend less time on paperwork and more time planning how to grow their money. As a result of this convenience, we are seeing many stokvels starting to look at expanding their offerings beyond savings, and enhance growth by investing in shares, unit trusts and even starting businesses together."

The strong growth in FNB's Stokvel platform shows that combining traditional group saving with modern banking technology creates a powerful tool that helps more South Africans save and build wealth together.

“The success of our digital stokvel solution shows that South Africans are becoming more comfortable using digital banking and considering investments, while still valuing the tradition of saving together.

"By making stokvels digital, we have made it easier for groups to save while keeping the community spirit and giving customers the desired results,” concludes Magongo.