Wednesday, January 26

FNB eliminates intermediaries with the new car market

FNB has expanded its successful nav »Home marketplace, which allows its clients to buy and sell houses from each other without agents, to vehicles.

The new nav »Car functionality enables a peer-to-peer marketplace of sellers and buyers in collaboration with FirstRand’s WesBank vehicle and asset finance unit. Its’ nav ” proposal is integrated into the FNB application, which offers access to four million users.

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The market ensures “less distress” on both sides of the transaction. From a buyer’s perspective, as Ghana Msibi, WesBank Motor CEO explains, the asset has been scrutinized. From the seller’s perspective, there is little risk, as the buyer has been pre-approved for financing.

The platform offers an instant value estimate to ensure sellers are listed correctly and through a partnership with vehicle inspection company Dekra can include an inspection report for the vehicle.


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There are thousands of live listings on the platform and the bank says it “has already facilitated some sales.”

In the second phase, the group’s network of associated dealers will be included. It will be interesting to see to what extent distributors embrace the platform, as it effectively disintermediates them.

Reduced risk of scam

Importantly, the platform offers sellers another option for private sales in addition to WeBuyCars, which now dominates the buying side of the market in urban areas. Markets such as Facebook, OLX and Gumtree have tens of thousands of listings, but serious questions remain about the research and vulnerability to fraud and / or scams in these.

The nav »Car platform is already in solid use, with more than 70,000 license discs renewed and delivered during the pandemic, and the payment of 200,000 fines enabled. Crucially, it already has 700,000 vehicles loaded into customers’ digital garages. This means that you have built a valuable view of these vehicles over time, and bank executives have hinted that in the future you can add functionality that enables continuous tracking of events during ownership (such as maintenance).

These vehicles are already automatically loaded into digital garages for new WesBank financial customers, and there are strong incentives for customers to load their cars and keep details accurate.

The strongest of these is its fuel gain in the eBucks rewards program, which offers up to R4 per liter each month. This can be doubled at the end of each quarter up to R8 per liter if customers have an active vehicle financing agreement with WesBank (or Toyota Financial Services or Volkswagen Financial Services), load their car in nav »Car and have 100% of your fuel cost at Engen.


Since its launch three years ago, nav »Home Market has facilitated 25,000 peer-to-peer transactions, totaling R30 billion in mortgage loan payments. This offers an idea of ​​the potential of the Navigation »Automobile market and, given the nature of these (lower value, less friction), the platform could easily allow this number of transactions in the coming months.

FNB CEO Jacques Celliers says the group’s (federated) organizational structure has helped it aggressively move this from a traditional bancassurance model to integrated financial services on a platform.

In many (most) other banks, the units operate in silos, each with its own incentives that prevent collaboration.

“We believe we are in the lead,” says Celliers, refusing to be swayed by how far away from competitors he considers the bank to be.

“Today, everyone has an application. It is more important what we have behind the application “.

It’s also key for the bank to make sure that whatever functionality it enables “isn’t something that people engage with once a year, for example.”

Broader focus

The bank has also expanded its home services market to now include professional services such as accountants, tutors, and ‘concert workers’. Since launching this market last year, the bank has helped generate an additional R 1.5 million in revenue for participating small businesses. This is small, but could escalate quickly if the bank encourages or encourages use.

Its new nav »Care solution enables customers to donate cash or eBucks to a good cause in various categories in less than a minute.

It has also expanded its money management capabilities with a revamped ‘My Net Worth’ tool that is currently in beta. This move suggests that you want to play a more active role in this space in the future.

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