30 November 2022
Upcoming product enhancements, including free Absa Rewards, and 2023 pricing revisions aimed at rewarding Absa’s best customers with significantly enhanced value.
Building on Absa’s half a billion rand pricing relief efforts last year, including below inflationary increases throughout the Covid-19 pandemic, the bank is intensifying support for loyal consumers with a further R500 million price reduction across Everyday Banking product offerings in 2023.
From 1 January 2023, the bank’s new-look pricing comes into effect, providing primary banked* customers with superb value for money while staying true to Absa’s commitment of addressing customer pain points. Wide-ranging enhancements to its pricing and fee structure and investments in key, market defining proposition refreshes throughout 2023 will offer unrivalled value.
Notably, Absa Rewards will now be free with more exciting enhancements on the horizon for primary banked customers including a new VIP Rewards programme. Headline changes in the latest pricing overhaul include more than R260 million in customer savings on Absa Rewards, and R230 million pricing relief for Flexi Account customers, with up to 90% reductions in key day-to-day digital transaction fees.
There will be no increases to monthly fees on Absa Transact, the cheapest account in the market** and fees for Digital Payments and External Debit Orders are slashed by 90% for Youth customers. Gold Value Bundle and Premium Banking customers will now benefit from free CashSend transactions as part of their monthly cash bundles keeping in line with the shift in consumer behaviour to digital banking.
“Remaining relevant to the rapidly changing needs of our customers and driving primacy is our highest priority. Absa’s latest pricing overhaul, and the positive progress we have made with previous pricing relief efforts is aimed at heavily rewarding our primary banked customers for their support. The raft of changes and impending product refreshes will provide best in class value. In essence, the more customers use Absa, the more they save,” says Christine Wu, Managing Executive: Consumer Product, Absa Everyday Banking.
Monthly fees on our credit cards remain unchanged for 2023 and customers who choose one of our market leading bundles can benefit from zero credit card monthly fees. Gold and Premium transactional package monthly fees have been marginally increased for the first time in three years and cash-handling fees will see adjustments reflective of the high cost and risk associated with cash.
“Rewarding our loyal, primary-banked customers is at the heart of Absa’s pricing philosophy. This review lays the groundwork for wide-ranging product refreshes in 2023, which include a selection of new transactional packages and exciting personalised offers through our VIP programme. These market defining enhancements are based on fundamental shifts in transactional and banking behaviour noted over the past few years, and crucial insights gained from Absa’s previous pricing relief efforts,” Wu adds.
As a full-service bank, Absa offers the convenience of a digital bank backed by the benefit of the human touch through our extensive branch and frontline network. We are ready to assist,” says Wu.
As part of Absa’s 2023 pricing review, specific highlights include:
- Absa Rewards Now Free for Everyone
- The Absa Rewards monthly fee of R23.20 has been waived, making it free for all Absa Rewards customers.
- There will be some new and exciting enhancements to the programme in early 2023 for primary banked customers, who will receive superior value from Absa Rewards.
- Dedicated Rewards Hub and new VIP programme to be launched in 2023 with a refreshed set of benefits to our customers.
- Youth and Students Continue to Bank for Free
- Absa Student and youth accounts still carry zero monthly fees and continue to benefit from free embedded benefits such as 100mb free data per month and free vouchers.
- In addition to unlimited free Absa ATM Cash withdrawals, Mega U customers to bank digitally with Absa will further benefit from 90% cheaper Digital Payments and External Debit Orders.
- No Monthly Fee Increases for Absa Transact
- Absa Transact customers continue to benefit from R5 000 free lump-sum death benefit and with zero monthly fee increases in 2023.
- Whilst ATM cash withdrawal fees will increase, customers have the benefit of unlimited free card-swipes, till-point withdrawals and rock bottom R1.00 per transaction digital payments and debit orders.
- Major Relief for Flexi Account customers
- Flexi Account customers will benefit from the following price reductions:
- Till-point withdrawals - Now free (Previously R2.00)
- Debit Card Swipes – R1.00 per transaction (Previously R4.00)
- Digital Payments – R1.00 per transaction (Previously R10.00)
- External Debit Orders – R3.50 per transaction (Previously R10.00)
- Monthly fees will increase to R40.00 pm but customers still get unrivalled value with free R15 000 lump-sum death benefit included as part of their monthly fee worth over R90.00pm.
- Digital Enhancements to Gold and Premium Bundles
- To ensure we remain relevant to our evolving customers’ needs as they shift to digital banking, we now include cash-send in our Gold and Premium monthly free cash limits which will be R4 000 and R5 000 respectively.
- Both offers continue to benefit from unlimited free digital transactions including card swipes, till-point withdrawals, debit orders, digital payments and transfers.
- Gold and Premium Monthly fees will increase to R115 pm and R200 pm respectively (First time in three years).
- Gold and Premium customers will continue to benefit from up to R25 000 free lump-sum death benefit.
- Customers who seek to apply for an overdraft will now benefit with a flat R175 initiation fee.
* Primary banked customers are classified as those who have their salaries deposited into their transactional account.
** According to the Solidarity Banking Report 2022 Absa Transact is the cheapest account in South Africa.