The FirstRand Group announced today that its e-commerce venture eBucks.com is profitable, eight months ahead of forecast.

According to Paul Harris, CEO of FirstRand Bank Holdings, eBucks.com is now well poised to further support the group in its drive to boost cross-sell and collaboration.

"One of our key messages when we launched in October 2000 was that eBucks.com would help boost the cross-sell ratio of the group," he says. "We stated that a point 1 increase in our cross-sell ratio would add R100 million to our bottom line.

To date, eBucks.com has achieved a 15% growth in cross-sell, boosting the product earn range across customers from 1.09 to 1.25.

The initial focus within eBucks was to establish the reward programme and Internet banking offering and reach critical mass in terms of customer numbers. At the start of this financial year, eBucks commenced with their focus on cross sell and has in the 6 months to date successfully cross sold 3700 Group products into the customer base. This ranges from a R1m home through FNB HomeLoans to a FNB Premier Credit Card with a loan of R25 000.

Harris says that the initiative has also become a highly successful Rewards Programme for the FirstRand group and it is functioning as First National Bank's Internet Banking portal. "Initially the Group set aside R300 million to support the fledgling business. eBucks.com required less than R100m in peak funding," he says. "eBucks.com is now profitable on a month-to-month basis and is outperforming all initial expectations".

According to Sandy Yates, CEO of eBucks.com the success of the initiative can be attributed to the successful implementation of a highly focused business model. She also applauded the commitment and farsightedness of FirstRand Group management and eBucks.com partners.

"Today eBucks.com's hosts over 129 000 active FNB Internet bankers who conduct more than R4.2bn worth of transactions via the website every month. It is also a rewards programme that has attracted 500 000 customers and rewards its customers with eBucks. They have collectively earned over R100 million worth of eBucks simply by using FirstRand Group products and services and MTN," she says. "eBucks.com also enables customers to spend their eBucks in the eBucks shop or with it's online partners. Spending patterns have matured over the last 12 months with average spend growing incrementally month on month. Customer spent R4m worth of eBucks in December, 2002," says Yates.

In closing Paul Harris says that FirstRand is looking forward to an exciting year in which eBucks.com will continue to be a true asset to the group.

About eBucks:

eBucks, the rewards programme offered by First National Bank (FNB) and RMB Private Bank, is acknowledged as one of South Africa's leading rewards programmes with highly active members spending in excess of 80% of the eBucks earned in any given month.