First National Bank's (FNB's) discounted device offer that has had some up in arms and others over the moon has been given another rung on the ladder with the introduction of Samsung devices.
FNB announced this week that four top-end Samsung devices, two tablets, a smartphone and the new smartphone tablet hybrid, are available at reduced rates along with the five that are part of the initial offering launched on 19 October.
The preliminary deal, for FNB Gold and Platinum cheque account-holders, offers customers financing options with up to 35% discount on the devices, including the Apple iPad 2, HTC Sensation, BlackBerry Curve 8520, HTC Flyer and HTC Wildfire S, with zero interest.
FNB says, swayed by the popularity of Samsung tablets and smartphones, and anticipating “healthy demand” for the devices, it is offering its Gold and Platinum customers the new Samsung Galaxy Tab 7 Plus, the Galaxy Tab 10.1, S II smartphone and Galaxy Note at reduced rates of up to 21%.
As with the original offer, the Samsung devices can be bought via FNB at fixed monthly payments over two years with zero interest, additional fees or bank charges. The monthly payment is in addition to the customer's monthly bank fee.
Mobile motivation
FNB says, through this offer and other channels, it is attempting to make mobile technology more accessible to the banked.
Banking Solutions, Irlon Terblanche, says the additional alternatives were added into the mix primarily to encourage more clients to use electronic means for banking.
Other channels through which the bank hopes to impel customers in this direction are FNB's mobile pricing option, which is structured to discourage cash-in-hand transactions, and its banking application, which can run on the discounted devices.
Supply and demand
The original offer saw an “unexpected” uptake, especially of the Apple iPad 2, currently the world's leading tablet in terms of market share. ITWeb subsequently reported on customers' grievances regarding delivery glitches with the original offer, which the bank said were as a result of formalities in connection with courier companies.
At the time, about a month after the introduction of the offer, FNB's product owner at its Core Banking Solutions, Kartik Mistry, said: “We had no idea what the response to the offer would be and have seen a phenomenal reaction, with over 1 500 queries a day.”
As at 14 November, FNB had received 32 088 queries, 80% of which Mistry said translated into sales.
Following a series of delivery delays and initial stock problems due to the sudden and overwhelming demand, Mistry said FNB had taken steps to rectify this and had ramped up resources to meet customer demands.
FNB says the popularity of the offer is still increasing, with an average of just under 4 000 devices sold per week. While the introduction of Samsung devices is likely to increase demand, Terblanche says: “Demand will be met.”
Apple iPads remain the most popular item on offer, says FNB, constituting 89% of sales. “BlackBerry and HTC share the remaining 11%.”
While the payment amount for the device will not change over the 24-month period once contracted, FNB says the monthly bank fee may change when its annual price review takes effect on 1 July next year.
The deal is available to new and existing clients with an FNB gold and platinum cheque account (including Young Professionals) or an FNB One Account. FNB Private Clients, Islamic Finance and RMB Private Bank cheque account-holders are also eligible.
Share
