OTE2601
Assignment 3
(Detailed Answers)
Due 8 July 2025
, OTE2601 Assignment 3
Due 8 July 2025
QUESTION 1: Comparison of Bank-Offered Stokvel Accounts and the Role of
Various Stokvels
Stokvels are long-standing, trust-based communal saving schemes deeply rooted in
South African social and economic life. Their evolution from informal, unregulated
models to formal, bank-integrated products signifies a shift toward greater financial
inclusion, transparency, and security. Prominent South African banks, such as FNB,
Standard Bank, ABSA, and Nedbank, have capitalized on this by offering formal stokvel
account structures tailored to meet the diverse needs of these collectives (Verhoef,
2001).
Comparative Analysis of Bank-Offered Stokvel Accounts:
FNB and Standard Bank:
• These institutions offer bespoke stokvel accounts equipped with digital platforms,
enabling real-time deposit tracking, account transparency, and financial reporting.
This functionality enhances internal governance within savings groups and
diminishes opportunities for mismanagement.
• Digital tools—including automated debit orders and online portals—support
member accountability and reduce the administrative burden typically associated
with manual contribution tracking.
• Integration with broader banking services such as savings-linked credit access
and investment products fosters a culture of long-term financial planning and
asset accumulation (Banking Association South Africa, 2023).
ABSA and Nedbank:
• Similarly, ABSA and Nedbank offer digital-first stokvel products that emphasize
financial literacy, user-friendly interfaces, and community development.
Assignment 3
(Detailed Answers)
Due 8 July 2025
, OTE2601 Assignment 3
Due 8 July 2025
QUESTION 1: Comparison of Bank-Offered Stokvel Accounts and the Role of
Various Stokvels
Stokvels are long-standing, trust-based communal saving schemes deeply rooted in
South African social and economic life. Their evolution from informal, unregulated
models to formal, bank-integrated products signifies a shift toward greater financial
inclusion, transparency, and security. Prominent South African banks, such as FNB,
Standard Bank, ABSA, and Nedbank, have capitalized on this by offering formal stokvel
account structures tailored to meet the diverse needs of these collectives (Verhoef,
2001).
Comparative Analysis of Bank-Offered Stokvel Accounts:
FNB and Standard Bank:
• These institutions offer bespoke stokvel accounts equipped with digital platforms,
enabling real-time deposit tracking, account transparency, and financial reporting.
This functionality enhances internal governance within savings groups and
diminishes opportunities for mismanagement.
• Digital tools—including automated debit orders and online portals—support
member accountability and reduce the administrative burden typically associated
with manual contribution tracking.
• Integration with broader banking services such as savings-linked credit access
and investment products fosters a culture of long-term financial planning and
asset accumulation (Banking Association South Africa, 2023).
ABSA and Nedbank:
• Similarly, ABSA and Nedbank offer digital-first stokvel products that emphasize
financial literacy, user-friendly interfaces, and community development.
