FNB launches advice campaign

FNB will launch this campaign on Sunday. Its main focus is to prevent people from getting unnecessary debts rather than how to get people out of debt.

"We give people advice on how to manage their finances," said FNB brand director Derek Carstens.

However, this doesn't mean that those struggling won't get help from the bank. "We encourage people who are finding it difficult to meet their obligations to seek the services of a debt counsellor. We have a helpline for that," added Carstens.

"People who are struggling to pay their debts must come and talk to us. Repossessing cars and houses is the last thing on our minds. It would be great to consult a counsellor if you are struggling, just don't get stuck on your own," said Jacques Celliers, the CEO of FNB credit card.

With Reserve Bank governor Tito Mboweni lifting the interest rates by 50 basis points; the repo rate now stands at 12% and prime lending rate at 15.5%. So it is for this reason that FNB thinks Helpfulness will play a major role in easing the plight of the suffering consumers.

"We want to empower people in these volatile situations. The hikes have caught all of us by a surprise," said Carstens.

How is Helpfulness going to help? "The campaign will stand on these pillars: Transact wisely, i.e. use banking channels that cost you less like free cell phone banking, internet banking and use ATM instead of your branch.

"It is possible to spend R65 a month in your bank transactions. This can be an option if you consider that most people spend between R150 and R200 a month on transactions," said Carstens.

Other services that the bank will highlight during the campaign are for South Africans to look at saving by getting fixed deposits accounts to work for them and "avoid borrowing if you could at this time," the brand director said.

This campaign will run for a period of eight weeks and acclaimed motivational speaker and author Suze Orman is going to drive the campaign.

Too late?

FNB property strategist John Loos said, "even though the hikes have a negative impact on consumers it is not all doom and gloom yet. We can start to worry when the repo rate hits anything between 18-19%. At some stage the governor will have to stop."

Is it not too late to start the Helpfulness campaign? "We know that most people don't plan in good times. We are not sure if it would have worked earlier. Besides the effect of rate hikes takes something like 6 to 18 months to filter through," added Loos.

Carstens said no one expected the rates to go up as much as they did two years ago. "We were all caught by surprise," he said. More details about the campaign will appear on the press on Sunday.

FNB has lifted its prime lending rate from 15% to 15.5% following the governor's rate hike announcement.

- Fin24.com