FNB has shaken up the property market with the latest revision to its nav» Home product in its very popular mobile app. The feature, announced on October 31, allows FNB customers to sell their homes directly to other customers.
Not only does this sidestep the need to pay estate agent commission, buyers will also get up to 50% off bond registration using the bank’s selected attorneys, plus 50% back in eBucks on their first home loan repayment.
Jolandé Duvenage, nav» Chief Imagineer (CEO) at FNB, says: “Since launch in 2016, nav» has become a trusted platform that has enabled a multi-channel approach, which empowers our customers to navigate their financial journey. A first within the home market, the new functionality allows known FNB sellers to connect with known FNB buyers in a reliable, cost-saving and secure environment. This allows us to build upon our existing Home marketplace, which enables the ability to either sell through an estate agent or privately.
The move has caused outrage among property agents, with many threatening to close their FNB accounts and to stop referring clients to the bank for home loans.
Dominant player Private Property, the country’s largest property portal, was slammed by agents because of its existing deal with FNB, where it syndicated listings to the bank’s nav» platform. At first, it asked its clients – real estate agents – to give it time to engage with the bank. COO Mark Coetzee defended the FNB deal: “We still believe that a strong relationship with FNB will be beneficial to the stakeholders in Private Property so would really like to find a solution that works for all.”
A week later it pulled its listings from FNB nav» Home. According to trade publication Property Professional, Coetzee said in a statement that: “It’s our responsibility to protect the industry we serve and this swift action to remove the listings from the FNB Banking App is a strong signal of our loyalty to the real estate industry.”
It continues to engage with the bank.
Yael Geffen, CEO of Lew Geffen Sotheby’s International Realty SA, says that on the face of it the “major drawback” for consumers is that the marketing and transactional platform is limited to clients of FNB, which “holds about a quarter of the South African mortgage market”. He also criticised the bank indirectly for “trying to be everything to everybody”.
“Through this solution, our sellers and buyers can engage, arrange to view a listed property and negotiate the price via Secure Chat on the FNB Banking App. Sellers and buyers can also disclose personal contact information only when they are comfortable to do so,” she adds.
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