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Positive Change

Starting May 1, South African banks are rolling out some major positive changes.

The overall goal of the changes is to make banking safer, fairer, and easier to understand.

After a lot of back and forth between the big banks, Regulators, and consumer rights groups, new rules have now been put in place. 

These include things like clearer fee explanations, quicker help with complaints, better fraud protection (using biometrics), and more secure online banking. 

All of these measures are designed to make your money safer and your life a little easier.

How It Affects You

If you’re opening a new account, be ready for stricter ID checks and providing solid proof of where you live.

When you bank online, you’ll start to notice stronger security measures. Things like fingerprint or facial recognition for big transactions.

Loan applications might take a bit longer because of extra checks (which will also hopefully help get SA off the grey list), and you’ll also start seeing upfront notices about any transaction fees, even at ATMs.

Basically, the banks have to be more upfront with you about a lot of things and sort out problems faster.

Who Will Feel It Most

Other than making more work for the banks, everyone will notice some changes, but obviously, some people might feel them more than others.

Small business owners, for example, will need to keep up with new rules around payments. If you work overseas and send money home, you can also expect a few extra steps. In a positive move pensioners will get better protection for their retirement savings, and investors will see some new compliance rules come into effect.

And all of us as regular bank customers will benefit from clearer pricing and better communication from the banks.

Do You Need To Do Anything?

As usual, the majority of the work will fall on the banks to roll out the changes and they will be asking clients to do things in the days and weeks ahead.

But you could get ahead of the curve if you want by taking a few minutes to update your personal info with your bank, especially your address and contact details.

You can turn on things like fingerprint login and two-factor authentication to stay secure. And you could check you bank’s latest fee structure and make sure you understand any new withdrawal or online limits.

Other than that, you can wait for the bank to ask you to do whatever is needed.

Overall these changes are positive and will help the average South African be better protected from fraud and scams. It will also help you avoid any unexpected fee surprises and give you more options for dealing with complaints.