FNB
estimates that it takes an average of five days for a middle-income consumer to
spend up to 80% of their monthly salary.
This suggests that the average
middle-income consumer, earning between R180 000 – R500 000 per annum, survives
on 20% of their monthly salary for more than 20 days in a month. In addition,
salaried middle-income consumers with secured and unsecured credit spend, on
average, 30% of their income on unsecured credit and 35% on secured credit.
According
to Raj Makanjee, CEO of FNB Retail, this is one of the indications that the
average consumer is stretched financially.
“The trend also points to a
continued culture of consumption,” he says, “leaving consumers with
little to start saving and investing for financial independence.
“In keeping with
our efforts to help our customers better manage their money, we’ve invested
heavily in the last decade in platform-based tools like our nav>> Money
and our eBucks Rewards programme has provided immense support to customers,
paying out over R16 billion in the last 20 years,” he says.
“As
part of our commitment to providing integrated financial services through
assisted and unassisted channels, we are also transforming our Retail offering to
provide customers with integrated advice, helping them to unlock financial
capacity in their lending and transactional activities to be able to save,
invest, and protect themselves and their families. By democratising access to
advice, we can assist more customers in securing a brighter financial
future,” Makanjee adds.
Senzo
Nsibande, CEO of FNB Money Management, says money management tools such as
nav>> Money on the FNB App can be used for free and currently has more than
2 million active users.
“We’ve observed that Retail customers who use nav»
Money on the FNB App are more likely to improve their credit, honour debit
orders, and begin or increase their savings on hand. This is very encouraging
because it demonstrates the potential of our tools in assisting customers
manage their financial responsibilities,” explains Nsibande.
“By
evaluating all aspects of their finances, consumers can stretch every rand
beyond its potential. This may allow them to begin accumulating cash savings for
emergencies and better plan for lifelong decisions such as a comfortable
retirement,” Nsibande concludes.
