SME Bank of the Year 2025 nominee: FNB
We are introducing the nominees for the SME Bank of the Year award. This category aims to acknowledge and applaud banks that demonstrate exceptional efforts in catering to the requirements of small and medium-sized enterprises.
FNB is dedicated to supporting SMEs at every stage of their business journey, offering more than just traditional banking. Recognizing that SMEs are the backbone of economic growth, FNB has developed tailored financial solutions and support structures to help entrepreneurs navigate the challenges of starting, running, and scaling their businesses. These efforts reflect FNB’s commitment to fostering inclusive economic growth by improving access to finance, bridging the gap for underserved businesses, and providing innovative tools to help SMEs thrive.
How would you describe your bank’s role in the SMEs business journey considering their importance in the economy?
SME Segment Definition: FNB defines its SME segment as any self-employed individual, sole proprietor, single-member, or multi-member registered business with an annual turnover of $0 to approximately $3.3 million (US$1 = ZAR 18.36 as of February 25, 2025).
Sub-Segments: Given the importance of SMEs in the economy, FNB has categorised its SME customer base into three focused sub-segments, to provide tailored solutions:
Township/ Community Economy: This segment focuses on businesses outside traditional central business districts, often cash-based and serving specific communities (historically being underserved by financial services). Financial inclusion, market access, and education are key priorities. FNB has a dedicated Community Economy team to bridge the gap between traditional financing and the informal economy, representing approximately 13.5 million people.
Gold business: Micro and small businesses with an annual turnover of R0 – R5 million ($0 - ~$272,331). These businesses aim to stay afloat and grow despite economic challenges. They seek a banking partner to help them run their businesses more efficiently and navigate tough times.
Platinum business: Medium businesses with an annual turnover of R5 million to R60 million (~$272,331 to ~$3.3 million). These businesses require bespoke solutions and a banking partner that understands their unique needs to help them grow.
- Approach and Offerings: FNB's approach is rooted in understanding its customers and their needs as business owners in a complex economy. With a large regional footprint, FNB's relationship and business managers are well-versed in local nuances. The SME team focuses on creating value through diverse products, digital technologies, and payment innovations. FNB offers a comprehensive suite of SME-focused products, including business accounts, lending products, savings and investment options, insurance products, and tools to help SMEs manage their finances effectively. FNB also provides Shari’ah-compliant products through its award-winning Islamic Banking.
- Women in Business: FNB supports women-owned businesses at various stages, offering tools and resources to formalise operations, access transactional solutions, and secure funding. As at 30 June 2024, FNB had 395,000 women-owned businesses, representing about approximately 33% of its commercial client base.
- Tailored Services: FNB offers a range of credit lending options (overdrafts, revolving loans, business loans, credit cards) and alternative funding solutions like invoice financing and merchant cash advance. The bank uses a behaviour-based credit scoring model to facilitate lending to SMEs without audited financial statements. This model analyses financial and trading history, simplifying loan applications and approvals. This has led to a consistent growth in FNB’s lending to South African SMEs, with behaviour-scored credit representing about 30% of SME funding.
Financial Inclusion: FNB assists black-owned SMEs with developmental programs, grant funding, and preferential loan rates. The Vumela Fund provides growth finance to early-stage SMEs, and enterprise development initiatives include educational summits and masterclasses. FNB's partnerships with government and industry bodies support funding for small-scale growers and farmers.
Digital Tools: FNB provides free digital tools like Instant Accounting, nav» Payroll, Fundaba business education platform, and the Business Hub for thought leadership. The nav» Marketplace allows SMEs to advertise services, sell business vehicles, and list properties on the FNB App.
Insurance Products: FNB offers business insurance products, including staff funeral policies, key man risk policies, short-term insurance, business comprehensive insurance and legal assistance through 'Business Law on Call' services.
Why do you think your bank deserves to be awarded the SME Bank of the Year?
FNB has gone beyond traditional banking to help entrepreneurs to thrive. This is our key differentiator. Below, we summarise the top features of our overall SME value proposition.
Access to Finance: We offer a variety of credit facilities, making us the largest lender to SMEs in South Africa. Our alternative scoring models and automated processes simplify loan applications and approvals
Digital banking solutions: We develop and enhance user-friendly digital platforms that allow SMEs to manage their finances efficiently. This includes online banking, a mobile banking app, and tools for invoicing, payroll, and expense tracking. FNB has the most advanced banking app for South African businesses – with functionality that far surpasses our peers. This allows businesses the ease and convenience of managing their banking and finances digitally, without having to take valuable time away from their business to visit a bank branch for simple enquiries.
Digital Payment Solutions: FNB has the widest available suite of payments products (ways to pay and get paid) for local businesses. Our range of digital payment solutions helps SMEs streamline transactions, reduce the time and effort required to handle cash, enhance security, and improve financial management. These solutions include Geo Payments, Scan to Pay, Forex Payments, eWallet, PayShap, ChatPay, and Request a Payment.
Merchant Services: We have introduced several new merchant devices, including App based (SpeedeeApp and Speedee QR) to help SMEs accept card and mobile payments and transition from cash to digital. The option to purchase merchant devices outright over the counter, without rental fees, has also been introduced. These innovations have been well received, enabling SMEs to streamline their payment processes and improve efficiency.
Affordable Energy Solutions: FNB Energy Solutions is a service provided by FNB to help businesses manage their energy needs through renewable energy solutions. This includes offering financing options for alternative energy sources, such as solar power, to support SMEs in managing energy costs and contributing to sustainability efforts. In 2024, we introduced financing options for alternative energy solutions to further assist SMEs in their energy management and sustainability goals
Customer Rewards: Our commitment to rewarding customers is evident through our eBucks Rewards program, which gave back R380 million (~$20.7 million) to clients in 2024, for their fuel and other purchases in the last year. This program incentivizes customers and helps them save on essential expenses, further supporting their financial well-being.
Through our innovative solutions, customer-centric approach, and commitment to sustainability, FNB continues to set the standard for SME banking, making us a deserving candidate for the SME Bank of the Year award.
Briefly highlight the top three projects or achievements your bank has delivered for SME customers in the past 18 months.
Over the past 18 months, FNB has achieved several significant milestones for SME customers:
Financing Options for Alternative Energy Solutions
In 2024, FNB introduced financing options for alternative energy solutions, helping businesses take proactive steps to manage their energy costs and contribute to sustainability efforts. This initiative supports SMEs in reducing operational costs and improving overall efficiency.
FMO Dutch Developmental Finance Institution Nasira Risk Sharing Scheme
Launched on November 1, 2024, this scheme focuses on second loss guarantees and expanding risk appetite, particularly for majority black-owned businesses, Women in Business, Youth Entrepreneurs, and Community Banking growth. This initiative provides further funding opportunities and support for SMEs.
Starter Limit Credit Card
This credit card plays a crucial role in driving financial inclusion. It offers all the features and benefits of FNB's business credit card, with limits ranging from R500 to R2000 (~$27.23 to ~$108.93) for existing customers and R500 (~$27.23) for new customers. The new digital process generates a credit agreement for the client to sign, reducing the account opening time by 50% (from a maximum of 8 days to 4 days). The Starter Limit Credit Card helps customers build a credit history, enabling them to qualify for higher credit limits or other credit facilities, such as business loans or overdrafts. Many of the businesses who start out using this credit card have been able to receive increased limits as their credit record has cemented.
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