| Thu 14 Jun 2001, 0:00 | | African Bank Media Release |
|
14 June 2001
EDCON/AFRICAN BANK DEAL IMPROVES ACCESS TO CREDIT
Edgars Consolidated Stores (Edcon) and African Bank today announced an
alliance that will see African Bank products sold in 200 branches of Edgars,
Sales House and Jet.
Stephen Ross, CEO of Edcon and Leon Kirkinis, MD of African Bank said the
groundbreaking agreement will effectively double the number of African Bank
outlets and will offer loan finance to Edcon customers, many of whom
previously had limited access to banking facilities.
This retail alliance for the mass market replaces a pilot agreement that has
been running in 19 Sales House and Jet stores.
"The new arrangement will extend our product offering to include a wide
variety of loan products that do not depend on payroll deductions. Both
parties will share the profits of the venture but the Bank will finance all
loans and carry the credit risk," said Leon Kirkinis.
The Bank believes the step is a logical progression from payroll-based
lending, where the primary relationship is with the employer, to a credit
bank, where the marketing effort will be directed at individual borrowers.
Each location will be connected to African Bank's nationwide IT networks
linking head office with 250 existing branches.
The in-store offering will include all the products and services offered by
typical African Bank distribution points, at which people will be able to
raise credit at competitive rates. Of particular significance is that it
provides customers with a safe and controlled environment in which they can
carry out their transactions. The bulk of business transacted through the
African Bank offering at Edcon is expected to be unrelated to clothing.
Selected African Bank clients will be offered Edgars, Jet and Sales House
cards for in-store purchases and qualifying cardholders, in turn, will be
offered credit for other purposes by African Bank.
Stephen Ross said: "We are constantly searching for ways to provide
additional services to our customers which will enhance their affinity with
our brands. African Bank has satisfied Edcon's rigorous criteria in this
regard, and this alliance is proof that Edcon is serious about offering
lifestyle-enhancing financial services to our diverse client base."
The new agreement does not affect Edcon's existing debtors' book, or its 3,5
million retail account holders, who will continue to qualify for the group's
well-known credit products.
Ends
Issued by: African Bank Media Relations/ Brunswick
Tel: (011) 256-9053/ (011) 442-8803
For more information, please contact:
Johan de Ridder
Executive Director: Marketing and Business Development
Tel: (011) 256-9232
Or
Pat Mdoda
Group Public Relations Manager: Edcon
Tel: (011) 495-6866 or 083 254 0111
Edgars Consolidated Stores (Edcon), which includes Edgars, Jet, Sales House,
Smiley's Wearhouse, Cuthberts and ABC chains is the largest CFTA (clothing,
footwear, textiles and accessories) retail group in South Africa with its
head office, Edgardale in Johannesburg. Edcon operates 613 stores
throughout South Africa, and has an extensive and efficient customer credit
network. The focus of the organisation is on providing customers with a
great shopping experience and good value for money.
African Bank is the largest credit bank in South Africa with approximately
1.5 million customers and 1.9 million accounts. The Group operates through
its own branded network, and in addition to its alliance with Edcon, has a
joint venture with Standard Bank to provide finance to people traditionally
under-serviced in their credit needs.
