FNB is positioning itself to rule the massive remittance path between South Africa and Zimbabwe by claiming that it has launched the most affordable money transfer service via the mobile phone.
In a statement released at the weekend FNB said it has launched an affordable service for FNB customers in SA to send money to residents in Zimbabwe using its Cellphone Banking channel.
“FNB’s Zimbabwe Money Transfer service is more convenient and economical than anything else offered in the market,” said Yolande van Wyk, Head of Digital and Alternative Banking for FNB Africa.
FNB cited a troubling stats. Recently, research data by the World Bank highlighted that 20% of money sent to Zimbabwe from South Africa is spent on getting it home. It is estimated that 1.9 million Zimbabweans live and work in South Africa sending around R6.7 billion annually to Zimbabwe.
The FNB Zimbabwe Money Transfer Service is based on a tiered pricing structure. Sending R1000 will only cost R45, which is 4.5% of the value of the remittance. Other savings include the absence of currency conversion rates for the sender and zero transaction fees for the recipient.
“We have done extensive research into the cross border remittance market and devised a service that is readily accessible to the people who need it most. People don’t always have the time to travel to the bank during working hours, and often need to send money home instantly and easily,” says van Wyk.
Recipients don’t need to be preregistered but must be residents of Zimbabwe and hold a Zimbabwean identity document. Recipients can collect their money at OK stores in Harare and Bulawayo, FNB is currently rolling out to other outlets in Zimbabwe.
“FNB Cellphone Banking allows senders to transfer South African Rand to Zimbabwe, instantly wherever they are. It is in line with the bank’s strategy to increase service options on our various digital channels,” said van Wyk.
In order to use the service, senders must have an FNB account and be registered for Cellphone Banking. Senders can send up to R1 500 a day, or R10 000 a month to Zimbabwe.