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FNB aims to expand its network of retail partnerships beyond its existing agreements with Pick n Pay and Boxer as the bank pursues a broader strategy of reaching customers where they shop and spend.Speaking to Business Day at a media briefing in Umhlanga on Thursday, FNB CEO Lytania Johnson said the bank’s partnership with Boxer is not exclusive and forms part of a wider plan to expand its reach across different customer segments.The latest tie-up builds on FNB’s existing relationship with Pick n Pay (parent to Boxer), where the bank first launched its 99c bread benefit in 2024. Boxer recently joined the programme in July, extending the benefit to more communities, particularly in rural and semirural areas where Pick n Pay has a smaller footprint.Johnson said the decision to partner with Boxer was driven by gaps in FNB’s retail reach rather than replacing its existing partnership.“When we started the partnership with Pick n Pay, it was really as an anchor retailer in the private segment. We always said that we would need to have another retailer to close the gap where Pick n Pay doesn’t really meet the customers’ needs,” she said.(Dorothy Kgosi) She said Boxer was chosen because of its presence in communities where many of FNB’s customers already live and shop.Johnson said the arrangement does not prevent FNB from working with other retailers in future.“It’s not exclusive, but Pick n Pay is the primary retail partner. Boxer is now the second partner in the personal segment space, and in the private segment there’s still ongoing focus around whether or not there is another partner we can bring in,” she said.Beyond large retailers, Johnson said FNB is also expanding through community-based businesses. The bank already reaches informal traders through partnerships with Pepkor’s fintech offering Flash, and Electrum, giving it access to about 170,000 spaza shops where customers can buy airtime and access eWallet services.She said the bank also continues to roll out its Agency Plus model, which enables selected small businesses to offer banking services such as account opening and cash transactions.“For us, it really is more about us knowing that as a bank we must get into the ecosystems where the customers are operating,” Johnson said.The strategy comes as FNB seeks to grow its presence among customers who do not bank with the group. Johnson acknowledged that many consumers still view FNB as an expensive bank, particularly in the entry-level market, and said the Boxer partnership provides an opportunity to change those perceptions.She said many existing FNB customers are not shopping at Boxer stores while millions of Boxer shoppers are banking elsewhere.The partnership is also expected to strengthen FNB’s physical presence in Boxer stores. Johnson confirmed that the bank plans to introduce kiosks and ATMs in selected stores, though she did not provide a timeline for the rollout.The bank said success will not only be measured by the number of bread vouchers redeemed. FNB also wants to see whether customers are able to keep money in their accounts for longer, build savings and make greater use of products such as insurance and investments.The bank expanded eligibility for the bread benefit in July to include Aspire and Prime Life customers in addition to Easy account holders.Customer feedback played a role in that decision, with them indicating the benefit was not accessible enough in some regions, while the bank also found that affordability pressures extended beyond entry-level customers.Since launching the programme with Boxer a month ago, FNB said more than 220,000 bread vouchers have been issued. Across Pick n Pay and Boxer the bank has now issued more than 7.7-million bread vouchers since the initiative began in 2024.Business Day
