Ewald Kellerman, head of sales for FNB, has revealed that FNB are shutting its doors to people who want mortgages but that don’t bank with FNB. Kellerman said this was an operational decision and that the pilot had been in place since the 22 October this year.
FNB home loan applicants had to have a transactional account with FNB whether that be a current or savings account. Kellerman explained that it was expensive for the bank to process all home loan applications from the public and that only one in 10 non-FNB customers sign up with the bank for a home loan. “Other banks are likely to offer their own clients a better rate as they understand them better,” said Kellerman.
Kellerman revealed that the cost saving that the bank will gain through rejecting non-FNB customers will end up benefiting FNB clients in a variety of ways such as improved service levels or more competitive rates. How FNB clients will ultimately benefit had not been ironed out yet he added. “Our intention is not to disadvantage customers but to provide a more competitive rate and service level to existing FNB clients,” he said.
Justmoney’s resident home loan expert, Siraj Karstens, said that applicants are not necessarily losing out: “We try and multi-submit but with FNB you have to be a client. But generally the bank that the customer banks with will offer them a better deal anyway.”