Limpopo Business 2020/21 edition

OVERVIEW
for new customers with an
interesting offering that does
not rely so much on digital
wizardry as on presenting
the customer with enhanced
banking facilities.
African Bank has created
an account that allows up to
five additional accounts to be
created in the name of the main
account. Fees are only charged
for drawing cash or at the time
of a transaction. There are no
monthly fees for any of the
accounts which can be either
for saving or transactional. Each
user has his or her own card and
monies can be moved between
accounts, ideal for families.
Sanlam has entered two
partnerships in the insurance
market. African Rainbow Life
has launched life-cover policies
in the low- and middle-income
market, in association with
Sanlam and African Rainbow
Capital. Sanlam is also in a
venture with Capitec. In 2019,
Financial Mail quoted Capitec
CEO Gerrie Fourie saying that
the bank was selling 3 000
funeral policies a day.
The Limpopo Economic
Development Agency (LEDA)
intends establishing a local
life insurance company.
These initiatives aim to make
banking more accessible for
rural communities and to
make finance more readily
available to small and microsized
businesses. Trying to
integrate small business into the
mainstream economy is a major
goal of national and provincial
governments in South Africa.
VBS Mutual Bank, one of
three mutual banks in South
Africa, was placed under curatorship in 2018. The appointed curator
was not able to confirm all deposits. In the lead-up to the bank not
being able to meet its commitments municipalities had been making
deposits to the bank although these violated restrictions put in place
by the National Treasury. VBS began life as the Venda Building Society
in 1982. The Public Investment Corporation held 34% of equity.
To support entrepreneurial students, the University of Limpopo
has set up the Limpopo Student Seed Fund together with the SAB
Foundation. Support will be offered to businesses that promise to find
solutions to social problems such as unemployment and hunger.
Ubank is owned by a trust that is managed by the Chamber of
Mines and the National Union of Mineworkers (NUM). It has about
100 branches and a strong presence in Limpopo because of its strong
focus on the mining sector. Ubank has about half-a-million clients.
Banks are actively working to sign up more of the unbanked
population. Nedbank has Approve-it, which allows customers to
accept or reject an Internet transaction by cellphone. Nedbank also
has partnerships with shops such as Boxer Stores and Pick n Pay
where customers can have access to financial services in previously
unserviced areas.
Image: African Bank
Some of Nedbank’s other innovations include Home Loans Online
Digital Channel and Market Edge, together with the Nedbank App
Suite. The Keyona Plus account includes funeral cover, a loan facility
and a method of transferring money. The Nedbank4me account is
tailored to the youth market. ■
Online Resources
Financial Sector Conduct Authority: www.fsca.co.za
National Credit Regulator: www.ncr.org.za
Office of the Auditor-General of South Africa: www.agsa.co.za
Public Investment Corporation: www.pic.gov.za
South African Institute for Chartered Accountants: www.saica.co.za
57 LIMPOPO BUSINESS 2020/21