FNB’s card data shows that individual customers are spending more of their income on groceries and entertainment, which includes out-of-home experiences such as eating out.
Currently, groceries account for 28% of customer spend, compared to 27% last year, and entertainment is at 12%, compared to 11.5% last year. The current top 3 spend categories are groceries, transportation, and entertainment, respectively.
Lytania Johnson, CEO of FNB Personal Segment, which consists of entry-level to middle-income customers, says, “Food and transport generally make up a significant portion of spend among many consumers, especially those in these income segments.
“Therefore, any increase in costs in these categories will always require households to review their monthly budgets. Unfortunately, food costs have largely been influenced by local and global economic factors that consumers cannot control.
“As a business that is focused on helping customers better manage their financial and lifestyle needs, we continue to support our customers with our advice-driven money management tools and rewards that help their money go further.”
According to Senzo Nsibande, the FNB Card CEO, “It is not surprising to see groceries and transport at the top of the list, as both food and fuel have been among the largest contributors to high inflation. Interestingly, in the entertainment category, we see largely middle and affluent-income consumers spending more on out-of-home experiences such as eating out, going to movie theatres, and bookstores, among others.
“This may be due to a combination of factors, such as people finding ways to mitigate the impact of loadshedding on domestic activities and an increasing desire to spend time outdoors.”
One of the ways in which FNB has been helping its customers manage the rising cost of living has been through its award-winning rewards programme.
eBucks Rewards helps customers supplement their spending on necessities such as groceries, bus tickets, and fuel through a range of partnerships.
In its recent interim results, FNB disclosed that eBucks paid out more than R1.1 billion to customers, a 9% increase compared to the six months prior.
“Our rewards also cover the telecommunications requirements of our customers, as this is one of the most important aspects of household budgets. In addition to leading the charge to make data and voice affordable for many, we offer qualifying customers free data and voice minutes to help reduce out-of-pocket expenses.
“We also see that customers who use our money management features on the FNB App are becoming increasingly adept at managing their short- and long-term financial commitments. We are committed to assisting our customers navigate their financial journeys through every economic cycle,” says Johnson.