Iemas members receive R123 million in benefits in 2013!

20 November 2013 Johan Nel, Iemas Financial Services

Johan Nel, CEO of Iemas Financial Services.

The financial services industry was faced with a number of challenges during the year, including increased legislation and regulations, consumer over-indebtedness and intense competition for consumers’ disposable income.

However, Iemas is a trusted partner to more than 600 of South Africa’s employers, providing finance and insurance products to their employees in a responsible manner. Despite the demanding environment, Iemas’s business model has once again proven to be resilient.

For the past three years, Iemas has been allocating record benefit amounts to our members. This year sees the highest amount of benefits allocated to members ever! Members receive a total of R123 million in benefits this year including benefit payments and interest on members’ reserve funds. Since 2010, Iemas has allocated benefits to members totalling R407.7 million.

The main benefit of doing business through a Co-operative is the fact that members share in the profits of the Co-operative because they own the Co-operative.

"I anticipate that Iemas will experience another good year in 2014, despite the somewhat gloomy economic forecasts. The main reasons for this optimistic viewpoint are that I believe in the sustainability of our unique business model and that I am positive that we have the capability and capacity to achieve our strategic goals,” says Johan Nel, CEO of Iemas Financial Services.

Because Co-operatives are owned and controlled by their members the decisions taken by Co-operatives balance the need for profitability with the needs of their members. Co-operatives share profits among their member-owners on the basis of how much they use the organisation, not on how many shares they hold.

Responsible financial lending and advice is very important to Iemas and one way we contribute towards our members’ financial savings is through the Iemas Deferred Bonus Payment Fund (DBPF), towards which a certain percentage of our members’ benefits are allocated annually. Members receive interest on the money in their DBPF. For 2012/2013 members will receive 6,5% interest on their DBPF accounts, which is a favourable rate compared to investment rates from banks.

Iemas Financial Services will continue being a caring partner to our members.

For more information, visit www.iemas.co.za.