FNB shares platform attracts first time black investors

Statistics gleaned from First National Bank (FNB) Share Investing show that the offering is attracting first time black investors within the middle income segments.

This is in a positive move which makes FNB Share Investing an effective tool in granting many blacks their debut in the equities market.

Launched in November last year, at the time when share prices were at their lowest levels in many years because of the global economic slowdown, the offering is showing very healthy growth under very difficult market conditions.

“We are really proud of the inroads our offering is making in effecting wealth creation for the man on the street. We feel that this is also a step in the right direction in stimulating a savings culture in a country that has low household saving ratios,” says Gusta Binikos, the chief executive officer of FNB Share Investing.

There are two product options: Share Builder, which targets the first time share investor and Share Investor for the more experienced investor. Share Builder is proving to be a hot buy for blacks and approximately 90% of blacks invested with Share Investing have chosen this option.

FNB’s analysis indicates that the take up of Share-Builder by black customers is most likely because of the simplicity and affordability of this offering. Share Builder is the most cost-effective online share trading platform on the market. It requires a minimum amount of R100 to open, with a monthly fee of R17 incl VAT. plus trading fees.

Share Builder also attracts customers that are younger, between the ages of 26-35.

“This is a positive trend because it pays to start investing when you are young. It takes time to build wealth and the sooner you start the better off you will be when you retire. Share Investing is a long term investment which requires patience and perseverance. However the rewards can be great.,” says Binikos.

The big numbers of investors come from Gauteng, Western Cape and KwaZulu Natal.