What happens to banking perks?

• Lenders say their offerings to premium clients are not just about rewards and still offer value for money

Private banking clients have had limited access to some benefits as travel and leisure pursuits have been curtailed since the start of lockdown in March 2020. This raises the question whether banks are still able to provide private clients with the benefits that these accounts promise — in particular, travel benefits such as access to lounges and ticket and insurance perks — and whether their premium clients are getting their money’s worth.

Private banking clients have had limited access to some benefits as travel and leisure pursuits have been curtailed since the start of lockdown in March 2020.

This raises the question whether banks are still able to provide private clients with the benefits that these accounts promise — in particular, travel benefits such as access to lounges and ticket and insurance perks — and whether their premium clients are getting their money’s worth.

The banks beg to differ. Gareth Kin, product head, premium core banking at FNB, says all private client services are still available, and the bank’s partners and services have continued to offer benefits through the different lockdown levels. This includes airport lounges, though it may not have applied at certain international airports if those countries’ lockdown curbs forced the lounges to close.

While private banking is “a holistic offering” and not just about rewards and benefits, Kin says, the bank is aware that rewards are “travel heavy” and has diversified its rewards options, with iStore being one of its more recent partners.

Premier and private-client accounts include numerous benefits, he says, though key perks are centred on eBucks, where major partners include Clicks, Checkers and Engen. Besides iStore, customers can now also receive up to 40% back on the cost of video-streaming services, which have been used extensively during lockdown.

Kin says FNB is aware not only of some clients’ limited ability to use benefits, but also that many are experiencing tough times financially as a result of the pandemic. Besides focusing only on the benefits of spending with FNB, it is also providing for clients in terms of lending, insurance and saving and investments.

In June, FNB introduced the Aspire bank account for middleincome customers, replacing its FNB Gold, with a reduced monthly fee for people earning above a certain amount and offering benefits such as data and travel if they use FNB for these services.

The bank is also offering, since the beginning of July, the option of paying monthly fees with eBucks on some accounts.

Kin says private banking includes multiple streams depending on how people earn (whether they are salaried, work for themselves or are retired), various qualifying criteria and various benefits. It also offers accounts for entities such as family trusts or asset-holding companies and global accounts. This means its premium and private banking accounts are far more than just benefits based.

An Absa spokesperson says the bank didn’t increase the monthly fees of its private bank transactional package in its most recent pricing review that took effect on March 1. Like FNB, Absa’s private bank benefits include a free credit card and travel benefits such as travel insurance, access to local and international airport lounges and concierge services.

“Travel and lifestyle benefits have always been important to this segment,” Absa says, “and while Covid-19 has restricted the use of these benefits in the short term, we anticipate that they will be used again in future. These benefits are provided at no cost to clients.”

Private bank customers get unlimited free ATM cash withdrawals, unlimited free point-ofsale withdrawals and purchases from tills, and access to a private banker. “The value of banking offered within this proposition is attractive, cost effective and cannot be matched by our other offers,” the spokesperson says.

A Standard Bank spokesperson says services such as lounge visits have been limited due to lockdown, and the bank received a few enquiries from clients in this regard and “managed them on a case-by-case basis. The bank constantly reviews the value that our accounts provide to customers”, he says, adding that any limitations to benefits had been communicated to clients.

“We still bear the cost of these services and believe that there’s still great value for what customers pay, and our bundle fee is still competitive when compared to our peers.”

FNB’S PARTNERS AND SERVICES HAVE CONTINUED TO OFFER BENEFITS