In a first for the banking industry in South Africa, First National Bank customers can now receive personal loan contracts in their home language. The bank has translated the documents into the country's 11 official languages.
Jeff McDonald, FNB's head of product and marketing, says that when customers have a contract written in their own language, the potential for misunderstanding or misinterpretation is signifi-cantly reduced.
"From the beginning of the application process, customers will have a full understanding of the details of their loan agreement and will be empowered to make more informed decisions. These customers are less likely to default on their loan repayments because they will fully understand the fine print," he says.
In addition, FNB will also have representatives in bank branches who will explain the contract details in the languages most commonly spoken by customers within the area served by the branch. Customers will also have an opportunity to ask questions and receive advice in their home language.
"This is particularly appropriate for our mainstream market as many customers may have difficulty understanding a contract written in a language other than their first language," McDonald says.
The 11 official languages are English, Afrikaans, Ndebele, Northern Sotho, Southern Sotho, Swati, Tsonga, Tswana, Venda, Xhosa and Zulu.