NovaBank SA — Products & Services
The product and service suite — transactional accounts, savings, credit, payments and value-added services — underpinning NovaBank’s mass-market offering.
Section 5 · Business Plan
Products & Services
The product and service suite — transactional accounts, savings, credit, payments and value-added services — underpinning NovaBank’s mass-market offering.
NovaBank’s product strategy is built on a deliberate principle of
radical simplicity. The Company will launch with one anchor account
product and expand through a tightly curated suite of adjacent products
that deepen the relationship with existing customers without diluting
operational focus.
5.1 Product Roadmap
| Phase | Months | Product Launches |
|---|---|---|
| Launch | M17 – M22 | Nova One Account; Debit Card; Send & Receive Money; Salary Direct Deposit |
| Phase 1 | M22 – M30 | Unsecured Personal Loans; Savings Pockets; Fixed-Term Deposits |
| Phase 2 | M30 – M42 | Funeral Cover; Credit Life Insurance; Bill Payments & Vouchers; Stokvel Account |
| Phase 3 | M42 – M60 | SME Account & Lending; Investment Wallet; International Remittance; Mortgage (referred) |
Table 5.1 — Product launch roadmap by phase.
5.2 Anchor Product — The Nova One Account
The Nova One Account is the foundation of the entire customer
relationship. It is designed to be the customer’s primary
salary-receiving account and replaces the need for a separate savings
account, debit card, or transactional product.
| Feature | Specification |
|---|---|
| Monthly Fee | R5.00 flat (free for under-22s and over-65s) |
| Inter-bank EFT | Free unlimited inbound; R3.50 outbound (PayShap rate) |
| ATM Withdrawal | Free at NovaBank-partner ATMs; R8 at others (capped 3/month free) |
| Card Swipe / Tap (POS) | Free unlimited |
| Savings Pockets | Up to 8 named pockets, each earning 6.5–8.5% p.a. tiered interest |
| Debit Card | Contactless Visa or Mastercard; first card free; replacement R75 |
| Account Opening | 100% via mobile app; full FICA in under 4 minutes via biometric & ID OCR |
| Daily Payment Limit | Customer-configurable up to R100,000; biometric step-up for higher |
| Customer Statement | Real-time in-app; downloadable PDF; SARS-ready CSV export |
5.3 Unsecured Personal Loans
Personal loans represent the primary driver of net interest income.
NovaBank will offer a single straightforward unsecured loan product
priced and approved using a behavioural scorecard developed in
partnership with a global credit-decisioning vendor.
| Parameter | Specification |
|---|---|
| Loan Range | R500 – R250,000 |
| Tenor | 1 – 60 months (most loans 6–24 months) |
| Interest Rate | Repo + 14.5% to Repo + 19.5% (NCA-compliant) |
| Initiation Fee | R165 + 10% of loan, capped per NCA |
| Service Fee | R69 per month (NCA cap) |
| Average Loan Size | Year 1: R12,500 → Year 5: R18,500 |
| Approval Time | Under 90 seconds for existing customers |
| Credit Decision | Behavioural model + SACRRA bureau data + transaction history |
| Affordability Assessment | NCR-compliant; documented evidence of income and disposable amount |
5.4 Savings & Term Deposit Products
Savings products serve a dual purpose: meaningful customer value and
a stable, lower-cost source of bank funding. NovaBank’s pricing strategy
is to publish savings rates that are at least 100 basis points above the
Big-4 average for equivalent tenors.
| Product | Min. Balance | Rate (Yr 1) | Notes |
|---|---|---|---|
| Savings Pockets | R1 | 6.5% – 8.5% | Tiered; instant access; in-app sub-account |
| 32-Day Notice | R500 | 9.25% | Notice period; partial withdrawals allowed |
| Fixed-Term Deposit | R5,000 | 9.75% – 11.50% | 3 to 60 months; auto-rollover |
| Tax-Free Savings | R250 | 8.75% | SARS-compliant; R36k annual cap |
| Stokvel / Group Savings | R100 | 8.00% | Multi-signatory; pop-up app feature |
Table 5.2 — Indicative savings product pricing as at planned launch
(Year 1).
5.5 Insurance & Value-Added Services
From Year 2 onwards, NovaBank will distribute a curated set of
insurance and value-added products through partnerships with licensed
underwriters under a binder agreement framework. These products generate
fee income, deepen customer relationships, and reduce churn.
- Funeral cover (R10,000 – R100,000), monthly premiums from
R29. - Credit life insurance (mandatory on personal loans where
applicable). - Device insurance and screen protection for mobile
phones. - Prepaid airtime, data, and electricity vouchers (small commission
per transaction). - Bill payments (DStv, water, traffic fines, levies) — free for
customers.
5.6 Future Products (Year 4–5)
Planned future products, subject to capital and regulatory
approvals:
- SME current account and unsecured SME loans (up to
R500,000). - International remittance via partnership with a licensed corridor
provider. - Wealth Wallet — a low-fee unit-trust and ETF investment
platform. - Mortgage origination on a referral basis with a specialist home
loans partner.
Every NovaBank product must pass three tests before approval by the
Product Council: (1) Can it be explained to an LSM 5 customer in 15
seconds? (2) Is its all-in price clearly cheaper than the Big-4 average?
(3) Does it generate at least a 2.5x lifetime-value-to-cost ratio in our
scorecard? If any answer is no, the product is not launched.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of NovaBank SA (Pty) Ltd.