FNB’s secret weapon is Pick n Pay

FNB is beginning to distribute its insurance products through Pick n Pay stores around South Africa, with the partnership beginning to deepen beyond eBucks rewards at the retailer. 

While still in its infancy, FNB Insurance CEO Lee Bromfield told Daily Investor that it has successfully sold around 1,000 products through this channel. 

This is a key channel for future growth for FNB Insurance, as its products have largely penetrated the bank’s existing client base. 

As a result, it is now looking externally to go and win clients that do not have any existing products with the bank, bringing them into FNB’s ecosystem. 

This means, however, that it is now competing directly with the country’s established insurers, such as Discovery, Sanlam, Old Mutual, and Momentum.

One of the natural edges FNB Insurance has is the bank’s distribution network, through its extensive branch footprint, banking app, and its new partnership with Pick n Pay. 

Much has been documented about the partnership’s benefit to the retailer and the bank’s clients through eBucks rewards points, with little known about any other elements of the partnership. 

The partnership first began on 1 October 2024, when Pick n Pay was added as a grocer partner for FNB Private Banking clients only.

From the beginning of April 2025, Pick n Pay became the primary retail partner of FNB, with the bank ending its partnership with Checkers.

This means that from 1 October, Pick n Pay is the exclusive grocery burn partner for eBucks. SPAR remains a burn partner in the Personal Care and Pet Wellness segments.

The bank has previously said this partnership is exceeding expectations with regard to client engagement and spending behaviour. 

Bromfield gave a little bit of insight into how the bank is benefiting from this partnership in other ways, particularly by leveraging Pick n Pay’s footprint to distribute its products. 

“When you don’t have a relationship with a client, it is much more difficult to win them over. It is properly competitive in the blue ocean out there,” Bromfield said. 

“The good news is that our brand has a really good reputation and is well known across South Africa, with immense truty and loyalty associated with FNB.”

“In terms of this open market strategy, you know, one of the big things that we are doing is leveraging what we call alternative channels.”

“This includes the Pick n Pay relationship that we have, and we are now distributing products through. It is close to around 1,000 insurance products at the moment, with it only launching recently and taking us some time to get that right.” 

Meet customers where they are

Having a physical footprint for FNB Insurance, whether it be through the bank’s branches or Pick n Pay, is crucial for the distribution of its products. 

While it has worked hard in offering insurance products digitally through the banking app, some clients still prefer human interaction. 

In other cases, some insurance products are relatively more sophisticated and require a level of financial advice or interaction that demands human interaction. 

As a result, many of FNB’s clients begin digitally but end the process with a physical interaction, particularly regarding life insurance. 

At a higher level, many clients acquire their first insurance product digitally and as they require more sophisticated coverage, move towards human interaction. 

“That is kind of our rule of thumb. New products, simpler products work immensely well on digital platforms. More complicated products or those where you have to deal with switches require human interaction,” Bromfield said. 

“With insurance, there can be so many nuances that there ends up being a massive relationship of trust built up with the client that cannot just be done digitally.” 

In this sense, Bromfield described FNB’s model as a hybrid offering, with clients able to engage with products digitally and physically. 

“I think gone are the days where we talk of digital-only or digital-first. Our model is now to meet customers where they are and ensure we can service their needs through various channels,” he said. 

In this sense, the Pick n Pay partnership can play a significant role for FNB in distributing its insurance products, particularly as it ramps up competition against established players. 

This is because it enables the bank to ensure the first insurance product individuals have is with it and not a competitor, enabling them to lock people into FNB’s ecosystem. 

Bromfield explained that it is much easier to ‘win’ a client with their first insurance product rather than convincing them to switch from their current provider, that hurdle is substantially higher.