With the merger of BoE and Nedcor, 3.2 million people have become clients of South Africa's largest banking group.
It's banking as usual for the 3.2 million clients of the Nedbank, NBS, Permanent, Peoples, CashBank, Pepbank, Pick 'nPay Go Banking, Cape of Good Hope and BoE in the Old Mutual/ Nedcor bancassurance alliance.
Richard Laubscher, Nedcor's chief executive, says there will be no changes to the way you bank in the short term despite announcements this week of a new structure based on its takeover of BoE in July this year.
However, over the longer term, there will be a huge translocation of clients between banks as Nedcor streamlines the 20 banking brands it acquired when it bought BoE and NIB (including NBS). It will take two or more years before the affected brands are phased out. So for now, it's business as usual for clients.
Nedcor has also been drawn into a closer assocation with Old Mutual, its parent company, with a number of services and products being offered as joint ventures in South Africa and offshore, bringing true bancassurance closer to reality.
There are also joint ventures with a number of other companies. The controlling stake in BoE Asset Management has been sold to an empowerment group, Aka, and Old Mutual also has a stake in the asset manager.
Also affected are 27 other financial services companies, such as four unit trust management companies, life assurance and trust and will services that were offered by the disparate parts of the greater group. These services will now also be rationalised.
The greater Nedcor group and Old Mutual will now offer a full range of banking and other financial services to all income groups.
Laubscher says everything will be done to ensure your bank continues to serve you. Nedcor will keep you abreast of any changes that affect you, he says.
"The purpose of the rebranding exercise is to focus our efforts behind our strongest brand in each market segment. It will be a process, however, rather than an event, which will be managed in a sensible fashion over the next two years," Laubscher says.
"The governing principle is that clients will be able to choose from within the Nedcor Group which brand and business grouping meets their preference," he says.
The rationalisation of brands should reduce confusion while still offering clients a variety of banking options, products, services and channels from which to choose.
Tom Boardman, who will head Nedcor's retail banking and wealth management operations, says clients recently reaped the first benefit of integration when Saswitch fees on ATM transactions across the enlarged Nedcor group were dropped.
"It is in this spirit that the rebranding and integration programme will proceed," he says.
Nedcor will trim the 20 client brands held by Nedcor and BoE to three main brands and five joint ventures. The three main brands will be Nedbank, Nedbank Corporate and Peoples Bank.
The joint ventures are:
- BoE, a joint venture with Old Mutual, which will seek to attract very wealthy clients;
- Old Mutual Bank, another joint venture with Old Mutual, into which most existing Permanent Bank clients will be moved;
- Pick 'n Pay Go Banking, a joint venture with Pick 'n Pay, which remains in place;
- Imperial Bank, a joint venture with Imperial Holdings that focuses on financing company vehicle fleets; and
- Gerrard Private Bank, a joint venture with Old Mutual, which offers offshore products and services to wealthy individuals.
ADVICE FROM THE NEDCOR GROUP
Do:
- Use any of the 1 230 automatic teller machines currently branded NBS, Nedbank, Permanent Bank, Peoples Bank, and Pep Bank without incurring Saswitch charges.
- Expect your current banking relationships to continue as normal for the next 18 to 24 months. You will be given sufficient notice and clear information about what to expect if you are in any way affected.
- If you are a client of Permanent Bank, expect changes to happen sooner because Permanent Bank converts to Old Mutual Bank under an earlier arrangement. You will continue to receive communication to this effect.
- Expect good service and a wide choice of banking, investment and insurance options, irrespective of the changes that lie ahead.
- Expect to be given sufficient notice and clear information about changes that are likely to affect you.
- Contact the call centre numbers if you have any questions. Call centre staff have all the information to assist you.
If you are an NBS client, you can also call the NBS call centre.
Don't:
- Panic about the safety of your money. You now bank with South Africa's largest banking group.
- Expect to conduct your banking at branches of other banks, even if they all belong to the Nedcor group. It will take some time before systems are integrated.
- Ignore letters and other forms of communication from your bank. These contain important information that you may need.
Help is at hand:
Nedcor has set up a Call Centre to attend to questions and comments about the merger from clients. The number is 0860 102 339. This is a share-cost call.