Our clients

ACCESS TO FINANCIAL SERVICES

Nedbank Group’s vision to become a bank for all South Africans, supported by its brand promise to Make Things Happen for the people of this country, translates into a firm commitment to growing access to the bank through the steady growth in distribution points and tailored banking services – particularly in areas of the country where access to banking and financial services has thus far been scarce or non-existent.

Access to Financial Services Scorecard

	2008 Nedbank	Weighted		Nedbank
Description	agreed target	score	Achieved	score
FSC sites (transactional savings products and services)	8	2,0	8	2,0
Mzansi (transactional and savings product)	391 307	4,0	642 477	4,0
Life assurance products and services	This section does not apply to us as a bank and we opted not   to report on it.
Origination (Rm): Low-income housing	R 8 800	4,0	R 8 503	3,9
Agriculture loans	R225	2,0	R 339	2,0
Black SME loans	R 1 000	2,0	R 3 560	2,0
Consumer education – % post-tax operating	0,2%	2,0	0,20%	2,0
profits spend pa

The innovative branch-in-a-box concept continues to enable Nedbank to provide full banking services in rural areas at a fraction of the cost normally associated with the establishment of branches. During 2008 this concept was further developed through the use of ‘mobile branches’ in the form of caravans that have been fully equipped to assist clients with most of their service needs. BootKits continue to enable Nedbank agents to open new accounts and provide valuable financial education, while multipurpose ATMs and self-service terminals further enhance the Nedbank offering. Nedbank has delivered its eight FSC branches as agreed with the FSC workgroup.

FSC branches:

			Type of service
FSC sites	Province	Target market	point	Opening date	ATMs
Shiluvana	Limpopo	LSM 1-5	Branch-in-a-box	11-Jul-05	1
Monsterlus	Mpumalanga	LSM 1-5	Branch	25-May-05	2
Dimbaza	Eastern Cape	LSM 1-5	Branch-in-a-box	27-Jun-05	1
Jerusalem Trust	Mpumalanga	LSM 1-5	Branch-in-a-box	04-Oct-05	1
Modimolle	Mpumalanga	LSM 1-5	Branch-in-a-box	25-Oct-05	1
Ga Mogatlane	Limpopo	LSM 1-5	Branch-in-a-box	28-Feb-06	1
Nggeleni	Eastern Cape	LSM 1-5	Branch-in-a-box	02-Nov-06	1
Highflats	KZN PMB &	LSM 1-5	Branch-in-a-box	04-Dec-06	1
	Hinterland

Adding value by saving clients money

In 2008 Nedbank Group delivered on its promise of exceptional value to clients through affordable, transparent and simpler bank charges and structures. A new fee structure was implemented on 1 November 2008, offering clients major reductions on monthly internet banking subscription fees, on the following accounts:

• Pay-as-you-use personal and Small Business Services current accounts – reduced from R22,80 to R15,00 or 34,2%.
• Savings deposit accounts – reduced from R22,80 to R15,00 or 34,2%.
• Transactor accounts – reduced from R22,80 to R10,00, an amazing 56,1%.
• Clients with only a credit card also had their fees reduced from R22,80 to R15,00.

With the improved convenience and lower cost of Nedbank internet banking, clients now enjoy a safe, convenient and cost-effective way to do their banking. Nedbank has also simplified monthly service fees on some transactional accounts and added more transparency on cash withdrawal fees.

Branches and ATMs

As part of establishing itself as a bank for all, Nedbank embarked on an aggressive infrastructure update and expansion programme in 2006.

ATMs by province
Province	2008	2007	2006
Eastern Cape	151	115	79
Free State	64	54	40
Gauteng	638*	607	528
KwaZulu-Natal	320	281	246
Limpopo	101	88	53
Mpumalanga	72	64	41
North West	63	62	40
Northern Cape	17	15	17
Western Cape	321	271	220
Total ATMs	1 747	1 557	1 264

*  Includes one mobile ATM.

 

Branches by province
	2008		2007		2006
Province	Nedbank	Old Mutual	Nedbank	Old Mutual	Nedbank	Old Mutual
Eastern Cape	38	Reclassified 14 branches to Nedbank and closed the other 32	33	3	91	3
Free State	11		10	1	4	1
Gauteng	154*		149	19	13	19
KwaZulu-Natal	88		83	9	14	9
Limpopo	24		23	1	22	1
Mpumalanga	19		17	1	83	1
North West	12		12	2	146	2
Northern Cape	4		4	1	9	1
Western Cape	95		91	9	28	9
Total branches	445	0	422	46	410	46

* Includes the branch at headoffice.

MASS MARKET STRATEGY

The implementation of our mass market strategy builds on our objective of creating a bank for all South Africans. A focused sales and service strategy now exists, which is aimed at growing Nedbank’s market share in this segment while enhancing presence and brand awareness in previously untapped markets.

Nedbank market share vs industry (excluding South African Post Office [SAPO])

MZANSI ACCOUNTS

As part of the drive to provide banking services to the previously unbanked, Nedbank Retail implemented mobile sales teams (MSTs) that are mandated to go into rural settlements with a view to educating people on the value of a bank account and assisting individuals to open Mzansi accounts. These MSTs have been a key driver in bolstering Nedbank’s Mzansi account uptake. The following table reflects Nedbank’s position relative to the rest of the industry in terms of the acquisition of Mzansi accounts:

	Total accounts
Excluding SAPO	2004	2005	2006	2007	2008
Industry total acquired	519 214	2 238 291	3 100 445	4 853 599	6 092 002
Nedbank accounts opened	36 009	255 053	475 404	776 987	1 067 176
Nedbank active accounts		179 760	278 349	507 838	642 477

In terms of the industry agreement, as from 2007 all banks will be measured on the number of accounts active at the end of the measurement period, which for Nedbank amounts to 642 477 at the end of 2008.

COMMUNITY BANKING

After two years of talking and planning with villagers, traditional leaders, councillors and the municipality, the people of Mnquma in the Eastern Cape now have access to a full range of customised banking and financial products and services. The ‘Green Shop’ in Mnquma was built by the of the district and houses branches of Nedbank, Old Mutual and Mutual & Federal.

The Green Shop was constructed with energy efficiency and environmental friendliness in mind and represents a place for the community to meet and from which entrepreneurs can run their small enterprises.