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FNB estimates that it takes an average of 5 days for a middle-income consumer to spend up to 80% of their monthly salary. This suggests that the average middle-income consumer, earning between R180 000 – R500 000 per annum, survives on 20% of their monthly salary for more than 20 days in a month. In addition, salaried middle-income consumers with secured and unsecured credit spend, on average, 30% of their income on unsecured credit and 35% on secured credit.
According to the CEO of FNB Retail, Raj Makanjee, this is one of the indications that the average consumer is stretched financially. “The trend also points to a continued culture of consumption,” he says, “leaving consumers with little to start saving and investing for financial independence says.
Mankajee added that as part of their commitment to providing integrated financial services through assisted and unassisted channels, they are also transforming their Retail offering to provide customers with integrated advice, helping them to unlock financial capacity in their lending and transactional activities to be able to save, invest, and protect themselves and their families.
CEO of FNB Money Management Senzo Nsibande says money management tools such as nav>> Money on the FNB App can be used for free and currently has more than 2 million active users. “We’ve observed that Retail customers who use nav» Money on the FNB App are more likely to improve their credit, honour debit orders, and begin or increase their savings on hand. This is very encouraging because it demonstrates the potential of our tools in assisting customers manage their financial responsibilities”.