![]() Existing competitors, especially Capitec, are popular choices for sole proprietors despite these accounts not explicitly being targeted to entrepreneurs (or really being suited for the purpose).Ĭonverting those who use personal accounts for businessĪdditionally, it will allow FNB to target existing customers who are using personal bank accounts to run their businesses. This move by FNB is not just about new entrants, however. It is likely, then, that it will take Capitec at least a year before it begins to offer disruptive products in this segment. But Capitec has indicated that it will immediately invest in digital and IT over the next two years to enable growth. Capitec’s acquisition of Mercantile Bank will see a concerted push by the country’s largest bank by customer numbers into the business segment. The move by FNB can be seen as a defensive one, with competition in the banking sector heating up. The name of this account evokes an obvious comparison with Bank Zero – also targeting the small to medium enterprise (SME) space – and which launches commercially next year. Per-transaction fees are in line with those charged on the Gold and Platinum accounts, but those accounts generally have a number of free bundled transactions. The account has unlimited point-of-sale purchases (swipes), free payments via a QR code in the FNB app (like Zapper/Snapscan), and an FNB Connect SIM card with a modest amount of bundled data, voice minutes and SMSs. It is precisely this segment – businesses with turnover under R5 million a year – that FNB is targeting with this new account.įirst Business Zero pushes FNB’s digital-first proposition into the business space. Think bakkie builders, plumbers and the like. Before November, FNB’s most cost-effective option, its Gold Business Account, meant a monthly fee of R80 or one of two bundles at either R265 or R390.Īs a result, many sole proprietors simply use their existing personal bank account (or a second account) to run their business. It is not uncommon for business accounts to have monthly fees of just under R100 for basic offerings, and banks have pushed bundled options where those fees are significantly higher. This is not a segment that has seen an awful lot of innovation, and banking for business is generally quite pricey. FNB’s new First Business Zero Account, with no monthly fees, has certainly made competitors sit up and take notice.
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