FNB’s Cash Investments Growth Specialist, Cebile Magongo, shares remarkable insights into the resilience and creativity displayed by South African stokvel savers. Magongo shares that Stokvel net deposits have seen a substantial increase of 42%.
Since November 2019, FNB Stokvel customers have consistently raised their savings through Stokvels, surpassing the noteworthy R8.3 billion mark in total member contributions. This growth stands as a testament to the financial tenacity of Stokvel members in the face of the challenging economic climate experienced in 2023.
The popularity of stokvels, even during challenging times is due to the social pressure of group savings, ensuring members remain accountable to each other. The Principles of trust, discipline, and accountability were highlighted as crucial elements contributing to the success of stokvels.
The younger generation which constitutes 45% of the total stokvel economy has been particularly innovative in utilizing stokvels for diverse purposes. These include investments in property for rental income, starting businesses (franchising), saving collectively for school fees and stationery, contributing to burial societies, and exploring unconventional avenues such as solar solutions.
The evolving landscape of stokvels, particularly the creative approaches adopted by the youth, demonstrates the adaptability and resilience of this longstanding South African tradition. As trust, discipline, and accountability remain at the core of these collective savings initiatives, stokvels continue to thrive, offering a diverse range of solutions to their members.
FNB has created solutions to help motivate stokvel members to move away from cash savings and to choose a higher level of security. These solutions and more on the topic can be heard in the podcasts:
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