First National Bank (FNB) has fully digitised its stokvel account offering, allowing South Africa’s informal savings groups to open and manage accounts entirely online, a move aimed at capturing a share of a sector believed to manage roughly US$2.7 billion in collective savings.
The new system removes a longstanding barrier for stokvels previously, the chairperson, treasurer and secretary had to visit a branch together to open an account. Instead, each signatory can now complete the onboarding process independently through FNB’s mobile app or online banking platform.
“This is a significant milestone in making stokvel accounts truly accessible,” said Himal Parbhoo, CEO of FNB Cash Investments. “Everything from account opening to transactions and payouts can now be done digitally, regardless of where members are located.”
Stokvels informal savings and rotating credit groups widely used across South Africa play a central role in household finance. There are an estimated 800,000 stokvels with around 11 million members nationwide. Historically, much of this savings activity took place in cash or semi-formal arrangements, exposing members to theft, disputes and limited transaction transparency.
Under FNB’s new digital process, signatories are verified using selfie authentication and checks with the Department of Home Affairs. Each signatory must accept the stokvel constitution and mandates electronically before the account is activated.
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The bank has kept the traditional three-signatory governance structure in place, preserving internal controls over transactions. Members can also be invited to view account activity through the app, USSD or online banking, enhancing visibility into deposits, withdrawals and balances.
The timing of the rollout is deliberate: January to March is peak season for stokvel formation, as households reset budgets and organise savings for the year ahead. By lowering barriers to entry, FNB aims to onboard new groups at the point of formation especially in rural areas where transport costs and sparse branch networks have previously hindered access.
South Africa’s major banks, including Standard Bank, Absa and Nedbank, offer group or society accounts for stokvels, typically with multi-signatory requirements and interest-bearing features. However, fully remote digital onboarding is not yet widespread. FNB’s end-to-end digital process seeks to differentiate the bank on convenience and accessibility.
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For financial institutions, stokvel deposits can be a stable and relatively low-cost source of funding, as balances tend to grow steadily throughout the year before seasonal payouts. For members, formal accounts offer enhanced security, official transaction records and protection from risks associated with cash handling.
FNB said that digitisation also lowers operational costs by reducing branch traffic while expanding reach into underserved communities via mobile channels. The bank has reported strong growth in its stokvel portfolio in recent years and views the digital upgrade as a way to deepen engagement.
The broader significance of the move lies in the gradual integration of informal finance into the regulated banking system. While the structure of stokvels themselves remains unchanged, competition for collective savings is increasingly being driven by digital convenience rather than physical branch presence.
