Solidarity Movement moves bank accounts from Absa
The Solidarity Movement (Solidarity, AfriForum and Helping Hand) today announced that it would be moving investments and money market accounts from Absa to other banks.
The leadership of the Movement, including Flip Buys (general secretary of Solidarity), Dirk Hermann (deputy general secretary of Solidarity), Kallie Kriel (executive director of AfriForum) and Alana Bailey (deputy executive director of AfriForum) will all move their personal accounts to FNB and Nedbank respectively.
Willie Spies, legal adviser of AfriForum, has indicated that his legal firm, Hurter & Spies, has moved millions of rands in investments on behalf of clients. The investment accounts of the respective institutions will be moved to FNB and Investec.
In addition to moving its own investment accounts, the Solidarity Movement is also widely distributing its report on bank charges - which found that Standard Bank and Absa are the most expensive banks in South Africa - among its members in order to enable members to make an informed decision about where to do their banking.
About 65%, i.e. 100 000, of the Solidarity Movement's members currently do their banking at Absa. The accounts have an estimated annual turnover of about R18 billion. This excludes mortgages and other business such as short-term insurance and wills. Apart from Solidarity members, several thousand dissatisfied Absa clients will also be informed about the findings of the report on bank charges.
According to the Solidarity Movement, it is expected that banking choices will in future be based on cost and service, and not on traditional loyalty.
The report on bank charges released by the Solidarity Movement shows, among other things, that Capitec and FNB are South Africa's cheapest banks. Capitec has the cheapest transmission account overall, but if a client wants an overdraft facility, cheque book and credit card, FNB generally has the cheapest account options. Nedbank is the third cheapest bank.
Among the ten cheapest accounts in the market, Absa only occupies the tenth place while Standard Bank did not make the top ten. The report compares the bank charges of different bank accounts at the four large commercial banks, namely Absa, FNB, Standard Bank and Nedbank, as well as those of Capitec, with each other.
Joint statement issued by Kallie Kriel, CEO: AfriForum and Dirk Hermann, Deputy general secretary: Solidariteit, November 3 2010
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