FNB’s Restart Fixed Deposit scoops R1 million prize

A novel banking product that rewards savers handsomely when the official interest rate increase has come tops in FNB’s Annual Innovators Awards, sending a clear message that - given the right tool - people do save.

And the two brains behind the Restart Fixed Deposit Account, Megan Brown and Gavin Symanowitz, walked away with the much-coveted of R1 million prize from FNB CEO Michael Jordaan at the bank’s 2008 Innovators Awards today.

Attended by 199 innovators representing the top 50 innovations this year (out of a total of 6 845 ideas entered), the 2008 FNB Innovators Awards event in Johannesburg was a festival to celebrate ideas that have come of age. The 199 innovators also walked away with prizes totaling R1,5 million.

Among a total 733 implemented innovations (compared to 527 last year) was the overall winner, Restart Fixed Deposit, which FNB introduced two years ago to attract longer-term deposits.

It is not just its unique features, such as innovative pricing, that have earned the product the R1 million award, but also its popularity in the consumer segment.

Through Restart Fixed Deposit, FNB has been able to reverse the tide of declining fixed deposits by bringing customers to FNB branches and giving staff something exciting to offer customers.

Restart Fixed Deposit is a 13-month fixed deposit product that gives the customer the flexibility to take advantage of an increase in interest rates by resetting the rate once during the period.

Robert Keip, Head of FNB's Savings and Investment Products, says those who have been agile investors (including Restart customers with the ability to restart their fixed deposit rates) benefited handsomely in October when the interest rate on 12-month deposits went up by 1% - locking themselves in for a 13 month period.

This is on the back of the credit crisis, which has seen increased volatility in investment product rates. “The cost of liquidity has benefitted the retail investor, who has received more favourable rates on their fixed deposit accounts as banks have tried to attract and retain these funds,” says Keip.

He says the R1 million prize for the two staffers in his team will hopefully incentivise his investment division to design more inventive solutions that help to plug funding gaps and reward savers with above- average returns on their investments.

Now in its fourth year running, the FNB Innovators Awards have successfully incorporated innovation and best practice into the development of new strategies and business solutions by the bank's employees.

Of the increase in the number of innovation ideas this year, Jordaan says the bank’s Innovators campaign is not merely about numbers. “It’s about creating the type of company where people with new ideas excel. It’s about being the type of company that embraces change and challenges in a confident, creative and well thought-through manner. It is about building a stronger Employee Value Proposition that enables FNB to attract talented individuals to come work for an organisation that rewards excellence and entrepreneurial prowess,” says Jordaan.

Sizwe Nxasana, the CEO of FirstRand Bank - of which FNB is a division - was one of the judges for the 2008 FNB Innovators Awards. He challenged all and sundry at FNB to have an innovative mindset by not only focusing on costs, but also on innovative service to customers in tough times - working more efficiently with less.

He said a noteworthy aspect of this year’s innovations was how people at FNB were embracing technology to improve efficiencies, although the use of technology itself was not necessarily the innovation. “One innovation actually saved 766 000 pages and 127.05 trees! Using the web and other Open Source technology, we have come a long way since we started automating to Excel spreadsheets,” said Nxasana.

From a FirstRand point of view, explained Nxasana, we support home-grown innovations which have become ingrained into the Group, and helped entrench an entrepreneurial culture.