South African stokvel savers have proved resilient, with FNB revealing that its customers’ stokvel net deposits have increased by 42%.
Since November 2019, FNB stokvel customers have continually increased saving via a stokvel surpassing the R8,3-billion mark in total member contributions. The growth is a potent indication of the Stokvel members’ financial tenacity in the face of a challenging economic climate.
“Stokvels remain among the most popular savings options among many of our customers who earn entry-level to middle income,” says Lytania Johnson, CEO of FNB’s Personal Segment. “While the make-up of stokvels continue to evolve, the principles of trust, community and mutual benefit remain the glue in the management and growth of stokvels.”
Sifiso Nkosi, product growth head at FNB Retail Cash Investments, says: “The surge in stokvel savings comes against the backdrop of a high interest rate environment, highlighting the importance of financial discipline among those who use Stokvels to accumulate savings for their goals. It’s also important to acknowledge that Stokvels have a profound significance beyond promoting a savings culture, as they facilitate economic participation for individuals and families.
“In addition, people who save through stokvels generally have very clear savings goals, whether it is to save for home-related expenses, large purchases, or even school fees. As we approach the festive season period, we also urge members of Stokvels to avoid exhausting their savings so they can generate even better returns in the future.”