R89 billion in unclaimed assets in South Africa – new way to check if you’re owed money
Standard Bank has introduced a new and streamlined way for South Africans to access unclaimed assets, including dividends, pensions, and insurance benefits, directly through its Banking App.
This development, achieved through a collaboration with Robin Hood, an unclaimed benefits tracing company, simplifies the process of claiming assets owed to individuals who may not even be aware of their entitlement.
Belinda Rathogwa, Head of Digital and E-commerce at Standard Bank, highlighted the impact this initiative could have on South Africans.
“Some clients are owed a few thousand rands, while others have large amounts of unclaimed benefits,” she explained.
“This is money that could change lives and boost the economy.
“By removing the requirement for clients to individually approach funds to submit claims, we are making it easier for clients to be reunited with their unclaimed benefits.”
This move helps address the widespread issue of unclaimed assets in South Africa, which, according to recent estimates, totals almost R89 billion and affects around 8 million people.
Standard Bank’s new approach simplifies the claiming process and broadens access by notifying clients directly within the banking app if they have unclaimed benefits.
This proactive notification eliminates the need for customers to seek out these funds independently, as the app will alert them of any potential claims as additional pension funds, insurance policies, and share schemes are integrated into the platform.
Rowan Gordon, CEO of Robin Hood, highlighted the significance of this partnership, noting that as more entities join Standard Bank’s platform, the scope of benefits available to clients will continue to expand.
“The more funds that join, the more value we can put back into the hands of clients,” Gordon emphasized.
Unclaimed benefits are a persistent issue in South Africa.
Funds remain unclaimed often due to outdated contact information, administrative errors, or simply a lack of awareness.
Assets in this category include retirement fund benefits, bank deposits, interests in collective investment schemes, and various life and non-life insurance policies.
They can also encompass proceeds such as dividends and interest payments that are left uncollected, particularly when beneficiaries are unaware of their entitlements.
The traditional process of tracing these assets is typically manual, presenting challenges in efficiency and sometimes raising concerns over credibility.
Standard Bank’s integration with Robin Hood offers a more efficient digital solution, reducing the delays and errors that often accompany manual tracking.
The problem of unclaimed assets is not unique to South Africa but is, instead, a global challenge.
However, in South Africa, it disproportionately impacts the financially vulnerable, for whom accessing these funds could provide critical support.
The Special Occasional Bulletin of Economic Notes published by the South African Reserve Bank (SARB) in August 2024 underlined the potential of these unclaimed benefits to infuse billions into the economy.
Similarly, recent reforms such as the “two-pot” pension system, designed to release funds back into circulation, underscore the importance of mobilizing unclaimed assets to support economic growth.
Both the Financial Sector Conduct Authority (FSCA) and National Treasury have called attention to unclaimed benefits, recognising them as a potential source of economic stimulus and a means to improve financial resilience for many households.
For those who are not Standard Bank clients, the FSCA provides a search tool that allows users to check for unclaimed assets by entering basic information such as name, surname, identification number, fund name, and employer details.
This resource, available on the FSCA website, serves as an accessible starting point for individuals who may be eligible for unclaimed benefits but are not yet part of the Standard Bank ecosystem.
Gordon remarked on the broader social implications of unlocking these funds, stating, “In a nation grappling with poverty and unemployment, unlocking these funds can empower citizens to invest in education, launch businesses, enhance their financial stability, and serve as a catalyst for a stronger, more resilient economy.”
Read: SARS pulls the trigger on taxpayers – watch out for this notice
Loading ...
