Customers at First National Bank (FNB) have saved up to R100 million in banking fees with the bank's free SMS Education Service.
According to the bank, the service, which was introduced in 2008, advises customers of cheaper banking options as they transact. “It helps customers make more informed banking choices and, in so doing, avoid unnecessary bank charges,” the bank says.
The bank unveiled the service to help customers properly manage their banking transactions and save them money at the same time. “The idea around this service is to improve customer education around banking fees,” it adds.
To make use of this SMS service, clients need to be registered with In-Contact, which is the service that notifies users of account activity. Thereafter, FNB will monitor the account and notify the clients via SMS on better transaction methods when using the banking service.
In 2010, FNB says, it sent 3.6 million text messages to customers telling them how they can save on bank charges.
FNB Smart Solutions chief executive, Line Wiid, says the bank has seen major changes in customer behaviour since the service was introduced.
He says there has been a 40% reduction in Saswitch cash withdrawal volumes, while counter or branch withdrawals have plummeted by 71% - with these customers now using FNB ATMs instead.
“Transaction volumes of counter deposits have dropped by 45% and unpaid item penalties have seen a 53% reduction. It's clear that customers can save significant amounts of money in banking fees if they are well informed on the terms and conditions," says Wiid.
Transactions such as withdrawing money from Saswitch machines, making cash withdrawals and cash deposits inside branches, withdrawing cash more than once a day, dishonouring debit orders and exceeding arranged transaction limits on accounts should be avoided, as there are much cheaper alternatives, says the bank.
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