A "Missed Opportunity" says Justmoney.co.za
The planned closure of Go Banking is a "missed opportunity" for South African bank customers, according to www.justmoney.co.za, South Africa's online guide to money.
Paul Beadle, managing director of www.justmoney.co.za, says that Go Banking's bank account and credit card have been amongst the most popular products on the website because of factors such as clear pricing and high credit interest rates.
He explains: "South Africans have struggled with the concept of ‘supermarket' banking, yet Go Banking offers 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.
"Go Banking's popularity on www.justmoney.co.za shows that many people understood its advantages. Sadly too many people used Go Banking as a secondary account, and this did not generate enough profit to make the bank sustainable."
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Beadle says 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. He says: "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.
"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. The success of similar supermarket banks in Europe means that it will eventually catch on in South Africa, at which point Nedbank will be in a very strong position to capitalise on this growth."
www.justmoney.co.za has been created to help South Africans save money by demystifying financial services and helping them to make informed decisions about their money.
Completely independent and unbiased, www.justmoney.co.za also features a host of comparisons, tools and guides, enabling people to search and apply for new products, all online and completely free of charge.