Tyme for a shake-up: banking competition steps up a gear
As newcomers stir things up, one of the flashpoints is loyalty programmes, of which we’re going to see a lot more, analysts say
When new entrants announced in 2018 that they had secured licences to open shop in SA, it was clear retail banking was in for some changes.
The industry began responding to the threat of new competition by dropping transactional banking fees on existing products after TymeBank launched its zero-fee account earlier in 2019.
Now, banks are moving beyond competition over fees. On Wednesday, Nedbank launched a money-management programme aimed at changing the behaviour of its customers so that they can make better money decisions. These include encouraging people to budget and rewarding them for this. Later, the bank wants to reward those who save and those who do not fall behind in debt repayments. For the first time, customers might even be rewarded by a bank for paying off their debt early...