Stokvels are reimagining the future of group savings through digital adoption, according to data from First National Bank (FNB).
The bank says stokvels have transformed, increasingly tapping into digital solutions over a two-year period.
According to FNB, stokvel members who use its no monthly account fee digital account have contributed over R1.8 billion since the solution was launched in 2020.
“The good momentum in stokvel savings has bolstered our efforts to facilitate the promotion of a savings culture among South Africans through a secure and transparent savings platform that generates competitive returns despite the tough economic conditions,” says FNB stokvels and group savings head Sifiso Nkosi.
"Our strategic approach to integrated financial inclusion has allowed stokvel members access to a suite of our financial solutions tailored for their needs. There is a shift and an entirely new spectrum of how groups are using the power of collective savings to achieve their financial objectives.
“This transition requires FNB to be more innovative in our solutions that cater to our customers' individual and collective demands, while assisting in improved management of group savings, administration, deposits and money distribution through FNB's award-winning digital channel."
FNB says of the 102 293 stokvel members on its platform, 46% have opened a transactional account for easier contributions, or to conveniently receive their share of proceeds.
Himal Parbhoo, CEO of FNB retail cash investments, adds: "Being a member of a stokvel is one of the most popular ways for South Africans to develop a saving culture. The challenge, however, has always been ensuring stokvel savings are managed efficiently. This inspired us to develop a digital stokvel account that makes it easy and safer for members to make contributions and share proceeds.
“In addition, members earn interest on the money they save as a group, which encourages them to save even more.
“The rising interest rate cycle provides an excellent prospect for stokvels to capitalise on the trend by holding their savings for a longer period rather than cashing them out. We're encouraged by the continued progress among stokvel members who use our solution."
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