by Lwazi Stuurman

Nedbank's pricing journey

Nedbank is taking care of its clients

Nebank has reduced its banking fees for the benefit of its clients
piggy bank.jpg

Late last year, Nedbank announced its annual pricing review, effective 1 January 2013. The review is part of its eight-year journey in its commitment to provide great-value banking.

The bank was one of the first to review its pricing structures in 2006 and 2007, which saw the bank scrapping, reducing and simplifying several fees. This includes a move away from ad-valorem to flat-fee structures on all non-cash transactions, resulting in a saving – at the time – of over R150-million to Nedbank clients.

Some competitors have only recently made these changes and dropped monthly fees, bringing them more in line with the market.

“We note the recent reduction in monthly fees by some banks on certain bundled products and encourage our clients to review their transacting behaviour, and not only the headline monthly fee,” said Anton de Wet, managing executive: Client Engagement at Nedbank.

“We continue with our commitment to simplify our fee structure and, together with an independent pricing consultancy, conducted a full analysis of our pricing – confirming that our fees are competitive and offer value.

"For example, our Ke Yona account includes R2 000 funeral cover in a monthly fee of R5. This pricing structure applies to all our outlets, unlike some competitors that limit their entry-level offerings to certain outlets only,” he noted.

Nedbank understands the growing pressure that consumers face from rising food, petrol and electricity prices and has endeavoured to minimise the impact of annual price increases. The bank’s 2013 pricing review has seen some fees scrapped, some reduced, others remain zero-rated, while in certain instances, fees have been increased in line with inflation.

All non-cash Nedbank ATM transaction fees including balance enquiries and prepaid purchases have been scrapped and are now free on all products and pricing plans. Fees reduced include cash deposits and withdrawals from other banks’ ATMs on the Nedbank Savvy Account.

While a cheque deposit fee has been introduced, clients have the option of receiving payments into their accounts electronically – an option that is free of charge.  

“We have found that some clients have been using a bank account that is not suitable for their needs. We are engaging with them to show them better alternatives. For example, if a client’s transactional activity is high, a bundled account such as Nedbank Savvy offers better value than a pay-as-you-use (PAYU) account, as all online transactions and debit orders are included in the R89 monthly fee," explained De Wet.

"By switching to the right account, and managing transacting behaviour, clients can save as much as 55% a month on fees. If you have fewer transactions per month, a PAYU product would suit you better, as you only pay for what you use.

“We’ve added more value to our offerings so clients now get even more bank for their buck, giving clients the power to make banking choices that save them money. We are confident that we have a banking account to suit our clients’ individual needs," he said.

"We also provide our clients with easy-to-use banking tools, helping them put more money back in their pockets. We encourage clients to be aware of their transacting behaviour and compare accounts to save on bank fees and to know exactly what they are paying for."

Nedbank is the first bank in South Africa to deliver an online personal financial management tool, called MyFinancialLife™, which is highly secure, easy to use and rich in functionality. MyFinancialLife™ empowers consumers to achieve their aspirations and financial goals, and is available to Nedbank and non-Nedbank clients at no cost.

“MyFinancialLife™ is an innovative tool that provides a view of your entire financial position in one place. It helps clients manage their finances better and start a lifetime commitment to improved financial fitness," said De Wet.

"More importantly, it makes it easy to identify areas of spending that could be changed, allowing you to plan better and improve your savings."

In addition, the newly launched Nedbank App Suite enables clients to do their banking anytime, anywhere. Another Nedbank-first in South Africa is its Approve-it™ online transaction authorisation capability, allowing clients the peace of mind when carrying out sensitive online transactions by making use of state-of-the-art security technology.

Since its launch in April 2012, Nedbank has had more than 13 million secure online transactions with a reduction of over 99% in successful phishing attempts when compared to the same period in 2011.

“We encourage our clients to engage with us directly and to use our free online tools to help them ensure they’re on the right account for their individual transacting behaviour, making sure they are banking-savvy to save on fees,” concluded De Wet.


Full details of how the 2013 fee changes will affect clients can be found on; by phoning 0860 555 111 or by visiting any Nedbank branch.


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Issue 46


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