First National Bank (FNB) yesterday launched a cellphone-based service enabling its South African customers to instantly send money to residents in Zimbabwe, in a bid to increase service options via the bank's digital channels.
FNB cites recent World Bank research, which reveals that 20% of money sent to Zimbabwe from SA is spent on getting it home. "It is estimated that 1.9 million Zimbabweans live and work in SA, sending around R6.7 billion annually to Zimbabwe."
Yolande van Wyk, head of digital and alternative banking for FNB Africa, says the bank has done extensive research into the cross-border remittance market and devised a service that is readily accessible to the people who need it most. "People don't always have the time to travel to the bank during working hours, and often need to send money home instantly and easily."
She says FNB's Zimbabwe money transfer service is "more convenient and economical than anything else offered in the market".
The service is based on a tiered pricing structure. Sending R1 000 will cost R45, while an amount of R1 001 to R 1 500 will cost the sender R70.
FNB points out that the absence of currency conversion rates for the sender and zero transaction fees for the recipient translate into direct savings.
While recipients need not be preregistered, they must be residents of Zimbabwe and hold a Zimbabwean identity document. FNB says recipients can currently collect their money at OK stores in Harare and Bulawayo. The bank is in the process of rolling out to other outlets in Zimbabwe.
In order to use the service, senders must have an FNB account and be registered for Cellphone Banking. Senders can send up to R1 500 a day, or R10 000 a month.
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