Jobs safe as Nedbank moves to absorb failed Go Banking initiative

Richard Stovin-Bradford

Richard Stovin-Bradford

Go Banking, Nedbank's separately-branded transactional banking operation, is to be integrated into the bank's mainstream retail brand after failing to capture the imagination of enough customers.

South African consumers have yet to wake up to the advantages of doing their banking while they shop - and retailers have also been slow to appreciate the benefits of reducing cash levels in their tills.

Point-of-sale banking is popular in Australia and the UK.

Launched as a joint venture with Pick n Pay seven years ago, Go Banking set out to offer consumers the convenience of cash withdrawals, deposits and payments at shop tills.

But it attracted only 50000 Go transactional account and 40000 credit card holders, despite its re-launch as an independent Nedbank brand last year.

Clive van Horen, Nedbank's managing director of retail banking services, said: "It was a good try, but the take-up has been a disappointment for us - despite the quality of the clients and the team."

He said Go Banking would no longer be promoted as a separately-branded offering. Existing clients' low-fees and attractive deposit interest rates would not be affected.

Staff will not be affected either. "We have told the 170 staff who work for Go Banking that we'll avoid job losses and absorb them into Nedbank," said Van Horen.