Latest news with #HimalParbhoo
The Citizen
07-05-2025
- Business
- The Citizen
Bank sees increase in stokvel savings: Here are some safety tips
The growth can be attributed to the belief that saving money in groups is more effective than trying to do it alone. Stokvels have been a popular way for South Africans to pool resources and support one another financially. This method of saving spiked among bank users in 2024, as FNB saw an increase in deposits being made into the bank's Stokvel Accounts. The growth can be attributed to the belief that saving money in groups is more effective than trying to do it alone. Himal Parbhoo, CEO of FNB Retail Cash Investments, said their Stokvel Accounts had received deposits totalling R13.3 billion by December 2024, representing a 66% increase from the R8 billion deposited by December 2023. ALSO READ: R600K disappears from stokvel's bank account More stokvels in SA He added that the bank's data showed a 34% increase in Stokvel Account members over the past 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.' Much of this growth has been fuelled by the bank's digital stokvel account, which allows members to contribute and share money electronically, reducing risk and eliminating cash handling fees. Digital stokvel account The change comes amid continued growth in stokvel participation. By April 2024, total deposits had exceeded R9.6 billion—a 15% increase from the previous year. Even in a challenging economic climate, FNB noted that stokvel members maintained steady financial discipline, driven by the convenience of digital savings management. 'Members can further make contributions and share money electronically, avoiding the risks of cash while saving on fees.' Cebile Magongo, strategic business developer at FNB Retail Cash Investments, said that the convenience of digital stokvels is a significant drawcard. Their data has also shown that many stokvels are starting to look at expanding their offerings beyond savings, and enhancing growth by investing in shares, unit trusts, and even starting businesses together. ALSO READ: Are stokvels key to surviving SA's tough economy? Safety tips for stokvel members Avoid cash withdrawals: Whenever possible, it is advisable to process payments through safe digital channels. This protects the money and eliminates the need to handle cash, which can incur unnecessary fees. Ensure funds are transferred at meetings: Consider making digital payments during the last stokvel meeting of the year. This ensures that funds are transferred into members' personal bank accounts before they leave the meeting, reducing the risk of carrying large sums of money. Keep stokvel details private: Do not share meeting dates, withdrawal times, or stokvel financial details on social media or with non-members. This information should remain exclusive to the group to prevent exposure to potential scammers. Avoid carrying large amounts of cash: If members must carry cash, it is best to do so in groups for added security. Additionally, avoiding travelling with large sums of money during peak times can significantly reduce the risk of theft. Stagger withdrawals: If digital channels are not being used, consider staggering the withdrawals over several days to minimise risk. Withdrawing all funds at once makes members an easier target for criminals. Withdraw funds during business hours: It is safer to make cash withdrawals during business hours, when security is more likely to be present. Be mindful of high-risk days: Avoid withdrawing large sums of money on high-risk days, such as month-end or the day before major holidays. These are often when criminals are most active, knowing that people are receiving their payments. NOW READ: Stokvels, the answer to many questions
Zawya
07-05-2025
- Business
- Zawya
How FNB's digital innovation is reshaping the future of stokvels in South Africa?
Growing numbers of South Africans are discovering that saving money in groups can work better than trying to do it alone, this is according to recent FNB stokvel data. 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.
