Business Maverick: Banks Entice South African Millennials With Rap, Free Food

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Business Maverick: Banks Entice South African Millennials With Rap, Free Food By Bloomberg

The biggest lenders are facing an onslaught of entrants for the first time in 12 years. They’re responding before the newcomers find their feet by pushing loyalty programs, revamping digital offerings for technology-savvy millennials, targeting existing customers with extra products and services and cutting fees.

Central bank data shows that term loans jumped almost 15 percent in the 12 months through February after contracting the prior two years, while the value of credit-card debt increased 9.2 percent from 4.7 percent a year earlier, after shrinking in 2017. “Where we see a transactional relationship with us, but a credit relationship elsewhere, we try to crowd” out competitors, said Chief Executive Officer Jacques Celliers. FNB rewards cardholders filling up at stations owned Engen Petroleum Ltd., the country’s biggest fuel distributor, through its eBucks program. “Our growth in insurance and the exciting opportunities we see in investments will be key avenues for growth.

The company plans to tap into the 4.4 million lives it reaches through insurance, wealth management and its Vitality loyalty program. The bank will follow the same concept as Vitality, which rewards clients who eat healthy and exercise with discounts on flights, gym and meals or Apple Watches at a fraction of the price if they meet fitness targets.

 

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