Our clients

AFFORDABLE HOUSING

The FSC target market is under growing pressure in terms of affordability of housing as a result of increased interest rates, rising property and building prices, limited personal income increases and the short supply of new houses. The first half of 2008 saw a marked decline in home loan applications. Against this backdrop Nedbank is actively involved on the Banking Association’s Housing Work Group with the specific intent to develop the low-income housing market by working with sector stakeholders, particularly National Housing. A concerted effort is also being made to establish relationships with developers in order to secure stock to finance.

On 29 September 2008 a project to implement the 40-million-euro facility with the Groupe Agence Française de Développement (The French Development Agency) was launched. A pilot phase is currently underway in Soweto, Lenasia, Vosloorus and Shoshunguve with the intention of expanding the geography of the project as soon as the pilot proves successful.

This special home loan offer has three unique features:

• Clients are given an R8 500 grant to pay half of the legal costs and half of the initiation fee. The balance is applied to reducing the loan amount.
• Clients are provided with the free services of a mentor in their community. The mentor undertakes homeownership awareness activities in the community and leads an extensive borrower education programme.
• Clients are given a 12-year reducing cap rate, which means that the rate will never go up but may go down.

While the response has been very positive, a lack of stock is limiting the progress of the project at this point.

CARBON FOOTPRINT REDUCTION HOUSING PROJECT

Combining affordable-housing development with environmental awareness and conservation, the goal of this project is to reduce the carbon footprint of the housing development financed by Nedbank by around 500kg of carbon emission per unit/house. Given that it is estimated that 12 000 units will be built in the coming years, 30% of which will be affordable housing, the carbon footprint reduction will amount to 6 000 tons of CO². The strategy focuses on a number of sustainability factors, including the following:

• Sourcing local material (proximity to the site), thereby reducing CO² emissions caused through transport.
• Using local labour for the same reason.
• Using fewer cement-based products.
• Implementing solar-powered street/community lighting (photovoltaic cells).
• Following an indigenous planting policy.
• Using synthetic grass on community sport fields.
• Finding alternatives to oil-intensive road surfacing, PVC piping, etc.

KHULA

The Khula Credit Guarantee Scheme is a guarantee provided by Khula Enterprise Finance Ltd (established in 1996 by the Department of Trade and Industry) to banks for clients who lack or have inadequate collateral or security to give to the bank. Khula does not provide loans or assist with financing of the business directly, but covers a portion of the bank’s risk on behalf of the small business. To date Nedbank Business Banking has provided loans to clients through the Khula Indemnity Scheme to the value of more than R11 million.

SIZANANI ADVISORY SERVICES

Sizanani Advisory Services assists SMEs in obtaining business finance from one of the participating banks and/or other financial intermediaries by appointing an accredited business adviser to:

• accompany the entrepreneur to the bank to assist in negotiating working capital and/or a loan facility from the bank;
• provide an aftercare service for a period of 12 months from the date of implementation of the bank facility; and
• work with the entrepreneur to develop and complete a business plan, including cashflow projection, income statement and balance sheet.

RESPONSIBLE LENDING

Nedbank Group supports the objectives of the National Credit Act (NCA), and invests significantly in training on policy and processes as well as system requirements and changes to ensure compliance with the provisions of the NCA. Such training is aimed at creating awareness among staff with a view to enabling them to educate consumers and curb overindebtedness. Nedbank has also signed a code of conduct governing lending and the extension of credit.

 

Data protection and privacy

As part of the group’s compliance with the Code of Banking Practice of The Banking Association all personal client information is treated as private and confidential. The Nedbank Group is further committed to complying with the Electronic Communications and Transactions Act regarding client privacy as well as the Financial Intelligence Centre Act (FICA) and Financial Advisory and Intermediary Services Act (FAIS). Formal policies and processes govern each division’s adherence to client privacy and confidentiality requirements.

 

Responsible product information/labelling

In accordance with FAIS legislation detailed product brochures are available, and relationship managers are tasked with explaining the characteristics, benefits and implications of products to clients, wherever possible. Product policies and procedures and product review committees are also in place in our private client business.