FNB to speed up Zim money transfers

(Duncan Alfreds, News24)
(Duncan Alfreds, News24)
Cape Town - First National Bank (FNB) has announced a money transfer service intended to disrupt the technology used to move money to Zimbabwe.

FNB announced on Tuesday that cellphone technology allows for FNB clients living in SA to send money to the neighbouring state.

Zimbabweans use a variety of formal and informal means to send money home, and FNB said that their new service was intended to provide a cheaper alternative that could disrupt existing channels.

"I think so yes: The big change is that it's all real time and immediate. If I send the money now, my sister in Zimbabwe can get the money now," Yolande van Wyk, Head of Digital and Alternative Banking for FNB Africa told News24.

She said that Zimbabwe was the largest corridor for money leaving South Africa on the continent, and FNB was looking at how the service could be expanded.

Transfer services

"If you look at the primary corridors... Zimbabwe is the biggest corridor out of South Africa, but there are other significant corridors as well such as Mozambique, Swaziland, Lesotho - is actually a big one as well.

"We're looking at what we can do there, yes," said Van Wyk.

It is estimated that 1.9 million Zimbabweans live and work in SA sending around R6.7bn annually to Zimbabwe.

News24 has learned that some Zimbabweans send money with taxi drivers that anything from R20 to R40 per R100 to deliver cash to recipients in Zimbabwe, while other may make use of Money Link or similar transfer services that convert rand into dollars.

The FNB service bypasses currency conversion so that users save money and the cash is instantly available at partner stores in Zimbabwe.

"It's a rand to rand based transaction so there's none of the exchange commissions that you would pay, say if it was rand to dollar.

"We've got two stores live at the moment - one in Harare and one in Bulawayo - and this is being rolled out to further stores inside Zimbabwe," said Van Wyk.

FNB channels

Users of the FNB money transfer service, who have to be FNB account holders, will pay R45 for R1 000 and R70 for a maximum of R1 500, with no fees for the recipient. The cash will be available at OK Ltd stores in Harare and Bulawayo.

Van Wyk said that other FNB channels like the banking app and internet banking were not perfectly suited to the demographic that relies on cellphone banking.

"The markets we're targeting are generally those that would be using cellphone banking, but we're definitely not going to be limiting it only to cellphone banking in the future."


- Follow Duncan on Twitter
 
We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Lockdown For
DAYS
HRS
MINS
Voting Booth
Who do you think is going to win the 2020 US election?
Please select an option Oops! Something went wrong, please try again later.
Results
Biden is going to take it
46% - 5662 votes
It's four more years for Trump
54% - 6701 votes
Vote
ZAR/USD
16.39
(+0.35)
ZAR/GBP
21.39
(-0.36)
ZAR/EUR
19.44
(+0.12)
ZAR/AUD
11.61
(-0.08)
ZAR/JPY
0.16
(-0.01)
Gold
1921.31
(+0.57)
Silver
25.10
(+1.44)
Platinum
879.00
(+0.96)
Brent Crude
43.05
(+1.28)
Palladium
2399.00
(+0.63)
All Share
55102.39
(-0.31)
Top 40
50646.79
(-0.40)
Financial 15
10011.32
(+0.55)
Industrial 25
74930.46
(-0.84)
Resource 10
53723.00
(-0.12)
All JSE data delayed by at least 15 minutes morningstar logo