FNB has once again disrupted the industry with one of the most innovative additions to hit banks across SA. From this week, you can now renew your vehicle license on the FNB app, and the whole process is as easy as ABC. Part of a full platform called nav>> Car, this smart online tool provides several handy tools that allow consumers to perform multiple checks and transactions online. While vastly welcomed and hailed as revolutionary in the industry, there does seem to be a downfall with the app for some people. Should you choose the ad-hoc feature, on top of the renewal fees, the bank has added an extra R199 for handling and delivery fees. Although consumers are blown away by how the new feature can save hours of queuing, the excessive fee is simply not sitting well with them. We take a look at the new feature.    

How Does It Work?

Should you use the ad-hoc vehicle license renewal, the process has been simplified to renew their license in a few easy steps.

1. Scan the license with your smartphone
2. Pay for the renewal using the in-app payment system
3. The license disk will be delivered to your door

Convenient right? This seems like it is too good to be true! Well, there are several more features to this app that make it really appealing for customers! Well, there are several more features within the app that make it really appealing for customers! Should you choose the On-road PROTECT, the app includes the following services:

• Renewal for up to five different licenses
• Receive instant notifications of traffic infringements and instant payment options
• Fine negotiation assistance, reducing the amount that you need to pay off
• Vehicle Finance Management options
• Licence disc renewal notifications
• 24/7 bail assistance at roadblocks
• Road Accident Fund claim assistance
• Tyre repair claim assistance

What Has The Response Been?

While there are many really positive responses to the news, many have questioned the fee which seems a bit excessive. Many are blown away by the bank's innovation and have praised the bank for being on the forefront of disrupting the industry. https://twitter.com/LKRawlins/status/872369858897481730 https://twitter.com/davydavez/status/868092417899212801 Others, however, are not as convinced about the service. https://twitter.com/chan_Nav/status/872491808122691585 In a comment on an article posted on Business Tech, one user questioned why the fee was so high to do the renewal.

"I would've jumped for this feature had it not been for that ridiculous R199 fee. I'd rather keep doing it the way I have been doing it for years. For the 6 years I owned my vehicle, I have only once received the renewal notice. So I just download and print the MVL form, fill it in and go to the post office to renew. Can't say that I have ever waited longer than 15 minutes. I would've settled for a fee of R50 at most for the convenience of doing it via the app and saving me the time and effort, nothing more though..."

Are The Fees Outrageous?

For many, especially in this day and age of cutting costs, R199 is quite an expense for something that you can do yourself. Should you choose the On-Road PROTECT, which comprises of the R95 monthly fee, you will also be able to renew five different licenses.  This works out to R1 140 per year. The average car's license costs around R276 to R303, depending on the weight and you will wait for an average of 1.5 hours to renew the license. This naturally depends on where you are, with some departments being quicker than others. There are various services that offer to do the renewal for you for a fee. Don'tQ, for example, who are based in Johannesburg, charge a fee of R285 to do the renewal for you. Should you need it to be delivered, however, that will be an extra R95. Bearing in mind, is the FNB app then outrageous? We contacted some courier services to find out just how much an envelope size package would cost to be couriered within the same town. DHL Express quoted R285.63 should the package be delivered from Cape Town City Center to Claremont. Postnet offers courier services of up to 5kgs, delivered in 2-3 days for R99. Postnet offers courier services of up to 5kgs, delivered in 2-3 days for R99. So, the question is, is this really excessive for a quick and easy service? Will other banks follow suit? And will they make the fees lower than the FNB? What are your thoughts?