One South African bank sees R13.3 billion in stokvel inflows

An increasing number of South Africans are using stokvels to save money, with inflows into FNB Stokvel Accounts growing to R13.3 billion by December 2024.

FNB’s recent stokvel data showed that growing numbers of South Africans are discovering that saving money in groups can be more effective than trying to do it alone.

FNB Retail Cash Investments CEO, Himal Parbhoo, said more people are joining stokvels because they believe it makes savings easier and safer. 

The bank reported that total inflows in its FNB Stokvel Accounts had grown to R13.3 billion by December 2024, up 66% from the R8 billion that flowed into these accounts in December 2023.

The data further revealed that more people are joining stokvels through FNB, with the total number of FNB Stokvel Account members growing by 34% in just one year.

Parbhoo explained that stokvels are becoming increasingly popular because people recognise that when they team up with others, they are more successful in saving efforts. 

Therefore, many South Africans have turned to saving alongside their colleagues, business partners, friends and family members.

“The strong growth in FNB Stokvel Account inflows shows how South Africans are working together to save, even when money is tight,” Parbhoo said.

He added that the growth in FNB’s Stokvel Account members and deposits is largely driven by the bank’s digital account innovations. 

The FNB Digital Stokvel Account, launched in 2020, makes it easier and safer for groups to manage their money and for members to contribute and share savings without paying cash handling fees. 

This has helped the bank’s customers save a total of around R168 million in cash withdrawal fees and paid over R253 million in interest, helping customers save over R421 million. 

“Members can further make contributions and share money electronically, avoiding the risks of cash while saving on fees,” he explained.

Another benefit of the FNB stokvel account is that all savings earn interest. This means members get more than just their contributions back – they also get extra money from competitive interest rates, helping them reach their goals faster. 

“Our bank’s digital stokvel accounts have grown quickly, with savings up by 84% to R10.7 billion, compared to R5.8 billion the year before,” Parbhoo said.

Going digital

FNB Retail Cash investments’ strategic business developer Cebile Magongo explained that the convenience of digital stokvels is a significant drawcard. 

“With FNB’s Digital Stokvel Accounts, members spend less time on paperwork and more time planning how to grow their money,” she said. 

“As a result of this convenience, we are seeing many stokvels starting to look at expanding their offerings beyond savings, and enhancing growth by investing in shares, unit trusts, and even starting businesses together.”

She also explained that the success of FNB’s digital stokvel solution shows that South Africans are becoming more comfortable using digital banking and considering investments.

This comes as South African finances are becoming more digital and moving away from cash.

In a recent analysis of its clients’ payment trends, Standard Bank found that digital transactions are growing rapidly in South Africa, with banks recording a decline in the use of cash for everyday transactions. 

Crucially, as technology develops to enable real-time payments, digital channels are increasingly displacing cash in lower-value transactions. 

Standard Bank explained that demand for instant payments is growing, and the mobile banking app is replacing older interfaces as a preferred payment method.

Over the past year, Standard Bank South Africa recorded a 21% growth in digital payments initiated by its personal and private banking customers in South Africa. 

The demand for instant transactions exploded, with Payshap adoption rising tenfold since its 2023 launch, and Real-Time Clearing volumes jumping by over 40% year-on-year. 

Even traditional electronic fund transfers continue their upward trajectory, underscoring the comprehensive embrace of digital payment solutions.

“This dramatic increase signals not just heightened consumer comfort and expanded solution offerings, but a fundamental change in how South African consumers conduct their payments,” Standard Bank’s Head of Payments in South Africa, Rufaida Hamilton, said.