Business

Over half of VBS’s clients have joined Nedbank

2019-03-08 18:09

About 55 percent of VBS Mutual Bank’s 17 000 former clients have joined Nedbank, this according to Nedbank chief financial officer Raisibe Morathi during an interview this week.

In November last year, the North Gauteng High Court granted an order for the liquidation of VBS following an application by the SA Reserve Bank.

Advocate Terry Motau’s report last year on the bank - titled The Great Bank Heist - found “wide-scale looting and pillaging” of nearly R2 billion from deposits at the bank.

Morathi said that the 17 000 former clients represented R260 million in deposits.

About 9350 of those former clients had activated their accounts in Nedbank, she added.

Most of the former VBS clients were stokvels.

Turning to raising competition in the banking sector, Morathi said that the bank was well aware of the number of new players like Discovery Bank, Bank Zero, Tyme Digital, African Bank and Sasfin that are all eying a slice of the industry.

The new banking players were likely to look to gain an advance by focusing on digital banking, she added.

“We are up to the challenge. We are investing heavily in improving the manner in which we service clients.”

Nedbank would be launching a new system to aide the process for new clients to join the bank and that will revolutionize the way things are done.

“That is expected in the next few weeks.”

“We are refreshing our loyalty programme into the market in the second half of this year,” Morathi added.

Nedbank has spent R2.5 billion on digital investments in 2018. Since 2012, Nedbank has spent close to R7.6 billion.

In 2019 and 2020, Nedbank planned to spend another R2 billion to R3 billion on digital platforms.

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March 29 2020