South African banks that offer credit life insurance are “hiding behind” regulatory compliance to force smaller players from getting a slice of a pie worth more than R20 billion annually.
This is according to Nkazi Sokhulu, the chief executive of Yalu Financial Services, who recently launched an advertising campaign challenging the product transparency of South Africa’s financial institutions and educating consumers in the process. The #NothingToHide hashtag prompts consumers to question how much local credit providers are keeping from them when it comes to credit life insurance pricing and terms and conditions.
The campaign, developed by Yalu Financial Services, a credit life insurance provider underwritten by Old Mutual Alternative Risk Transfer, is challenging South Africa’s dominant financial brands to become more open about their products, so customers are clear about every detail of the contract.
Sokhulu said the billboard advertising is primarily focused on Gauteng, as most of the major banks have their headquarters in the province and also where the firms' biggest customer base is located.
“This was months of planning, months of thinking, months of observing. We saw a frightening activity from the big banks in terms of how they treat customers when they were actually just picking up their own rights as enshrined in the National Credit Act, and also enshrined in the credit life regulation.