The planned closure of Nedbank’s Go Banking is a “missed opportunity” for South African consumers, according to Justmoney.co.za, a South African online money guide.
Paul Beadle, MD of Just Money, said that South Africans had struggled with the concept of “supermarket” banking, yet Go Banking offered lower charges via innovations such as point-of-sale cash withdrawals.
“Go Banking could have provided cheaper banking for many consumers, so this really is a missed opportunity for people — particularly as we often complain that our bank charges are too high,” he said.
He added that Go Banking’s bank account and credit card had been among the most popular products on Just Money website because of factors such as clear pricing and high credit interest rates, and that its popularity showed that many people understood its advantages.
Sadly, too many used it as a secondary account, and thus it did not generate enough profit to make the bank sustainable.
Beadle continued that it was also probably difficult for Go Banking’s parent, Nedbank, to run different banking brands, which until recently also included Old Mutual Bank.
“If Nedbank had promoted Go Banking more aggressively, there was a danger that Go Banking could have taken customers and market share — and profit — away from Nedbank’s own banking products” he said.
“However, I believe Nedbank will use the experience of Go Banking to inform its own strategies for pricing, product innovation and customer acquisition, because it is obviously keen to grow its market share,” he concluded. — I-Net Bridge