First National Bank's (FNB's) aggressive marketing strategy, based on the bundling of smart devices with its core banking products, is more than just a passing fad or gimmick, say analysts, and the bank has gained a significant edge over its competitors.
Pundits are also quick to dismiss criticism that the bank may be losing its focus on the business of banking and is instead more interested in being a smart device distributor. Instead, they say, most of the negativity is based on false perceptions, for the most part emanating from non-FNB clients.
"It is true that FNB is a significant reseller of mobile devices, but there is a huge public misconception that they are the biggest distributor of iPads," says World Wide Worx MD Arthur Goldstuck. While it is a fact that, as part of its marketing drive, FNB does offer attractive deals on smart devices, that does not detract from its core financial services products, he adds.
If anything, Goldstuck says, FNB has been successful in attracting a younger crowd, but says it must be kept in mind that the banking group is a huge corporation and its smart device business should not be used to characterise the entire group.
Expanding range
FNB corporate communications consultant Margaux Stevens reveals FNB's top-selling brands, in order of popularity, are: Samsung, Apple, HP, Lenovo and Sony; while its top-selling devices are: Samsung S5, iPad Air 16GB, PlayStation 4 and the Samsung 40-inch TV bundle.
"In October 2011, we sold a total of five different devices and today we have 60 different devices in our smart device offer."
The bank's initial range of smart devices was limited to smartphones and tables, when it first unveiled the plan in 2011, but it has since added gaming consoles and other entertainment gadgets into the mix.
Ovum analyst Richard Hurst agrees FNB's foray into smart devices should not be seen as a distraction, but rather as "part and parcel" of a modern banking offering, and thus a solid strategy to attract clients.
"This is one way for FNB to ensure it appeals to a younger demographic and also positions the bank well for any significant uptakes in mobile money and other products, via the FNB banking app," he says.
Both Goldstuck and Hurst agree FNB has - via its smart device push - managed to crack two of the most traditionally stubborn traits of the modern consumer: the unwillingness to change banks and mobile operators.
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