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FNB offers retirement annuity in app

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 07 Feb 2022

First National Bank (FNB) is offering its customers the option of taking out a retirement annuity (RA) via its banking app.

In a statement, the bank says in less than three minutes, customers can get a retirement annuity digitally without paying financial advisor commissions or investment processing fees.

Additionally, the only cost is the asset management fee charged by the investment management company tasked with growing a customer’s investment, it notes.

Raj Makanjee, CEO of FNB Retail and Private Banking, says: “This is part of our focus to be an integrated financial services provider that is relevant to customers across their transactional, credit, insurance and investment needs.

“As a result, we are consistently enhancing services on our digital platform to make it easier for customers to manage their money, plan, and track progress towards their long-term goals, such as saving for retirement. The fact that the service is available digitally means that it is immediately accessible to millions of South Africans to start or accelerate their retirement savings journey.”

FNB says customers will also earn eBucks rewards points depending on their investment balance and get their banking fees paid back in eBucks for taking out a retirement annuity or other investment products, based on their eBucks reward level.

As a result, customers who use bundled transactional bank accounts don't have to pay platform administration fees on their retirement annuities or other types of products.

According to Bheki Mkhize, CEO of FNB Wealth and Investments Solutions, the RA on app feature was developed in response to feedback from many FNB customers who said they were hesitant to invest in an RA because the process seemed complicated.

“We realised that people needed a fast and uncomplicated way to invest for their retirement, so we built an intuitive digital solution that helps our customers save towards their retirement in less than three minutes.

"We have the advantage of being able to pre-populate most information required for customers which makes the process more seamless.

"Saving for retirement forms a key part of FNB’s drive to assist customers throughout their money management journey…it is never too late to start saving for retirement, but people who start much earlier have a better chance of meeting their retirement goals,” concludes Mkhize.

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