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South African bank ranked best in the world

South African bank ranked best in the world

International banking advisory group Lafferty has ranked Capitec bank as the best bank in the world in its inaugural Bank Quality Rankings.

Lafferty uses a combination of financial and non-financlial disclosures in banking groups’ latest annual reports to determine the quality of the organisations and their respective business models.

Among the indicators analysed are strategy, culture, customer satisfaction, executing brand promises and other criteria.

According to the report’s findings, Capitec came out on top, with the only 5 star rating out of the 100 banking groups listed.

Lafferty Group founder and chief executive Michael Lafferty said the ratings were an independent global measure of bank quality and were intended for those who manage, direct, advise, regulate and use the services of banks worldwide.

The group said that only “the very best banks” receive five stars.

“Our aim is to promote excellence in banking – for customers, staff, communities, society at large and not least for bank shareholders and investors,” he said.

“The methodology is founded on extensive research with senior bankers, regulators and shareholders around the world and has been particularly influenced by the work of the Bank of England and the Max Planck Institute in Berlin,” Lafferty said.

After Capitec, Absa was the second highest ranked local bank with 4 stars – with Standard Bank, Nedbank and FirstRand also appearing among the top 100.

Capitec ranked above global banks such as HSBC, Deutsche Bank, Goldman Sachs, JPMorganChase, UBS and WellsFargo.

The top 10 global banks according the 2016 Lafferty Bank Ratings are:

# Bank Country Rating
1 Capitec Bank South Africa ★★★★★
2 Barclays Africa South Africa ★★★★
3 HDFC India ★★★★
4 Discover USA ★★★★
5 Public Bank Malaysia ★★★★
6 OCBC Singapore ★★★★
7 TSB UK ★★★★
8 Swedbank Sweden ★★★★
9 Handelsbanken Sweden ★★★★
10 National Bank Kuwait Kuwait ★★★★

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  • Neo

    Wow. Now this is news. Great stuff, Capitec!

  • Cynic Scepticism

    I don’t know what these guys were smoking when this report was compiled. There is categorically, certifiably, no way in hell that ABSA is in any conceivable way better than FNB. Former ABSA client, current FNB client.

    • Flame

      Isn’t that your opinion sir? Do you have stats to back up what you just said?

      • Does a person need to spell out they’re sharing an opinion based on their observed experience, or is it your responsibility as a learned adult to be able to discern between an opinion and fact.

      • Wyzak

        It’s mine too, and The God Father’s and Nadim, and there will be more.

    • The God Father

      Yeah. The Capitec part I can believe but, as for ABSA… Hell No!

      • KoasConverter

        How the … ABSA ……

    • The Gadfly

      Must be a Gupta hand therein

    • Greg Gow

      Barclays Africa is a separate business unit to ABSA.

      • Cynic Scepticism

        It’s very confusing. Bruce Whitfield keeps saying ABSA Bank trading as Barclays Africa. Chances are the evaluation was done on a larger entity than just ABSA…

    • Kevin Seyffert

      Funny thing, I am a former FNB with ABSA. I gues we just have bad experiences in one place and move on to another and don’t have the bad there. May be pretty random. I for one am a rabid anti-Nedbank!

  • Nadim

    Good on Capitec. But Absa world-class #2? No way.

    • Greg Gow

      Barclays Africa is a totally separate business unit to ABSA

  • ZA

    Capitec….huh….maybe it should have been African Bank!!!

  • BV

    Really, I’m straight away switching to Capitec. What am I still waiting for at FNB with their crazy charges.

  • It’s-a-fact

    Banking with Capitec, loving it!

  • SO Barney Stinson’s GNB did not make the list?
    Interesting that this is the case with Capitec, a few weeks ago people were making fun of it on Twitter for being too cheap and the ATM Queues always being long.

    • ursanegro

      there’s a *reason* that their ATM queues are long. low bank costs.

  • Wyzak

    ABSA second, hahahahahaha. Just confirms that the ratings is a joke.

  • Do we have any in a worst in the world list? I am generally impressed with Capitec and look forward to when they launch a credit card so I can use them for my own accounts. Nedbank in my experience has been pretty atrocious and Standard even worse.

    SA banks I deal with have made the mistake of taking all skills out of their branches without having sufficiently competent centrally managed services. If stuff breaks and you go to a branch, they call the same useless help line as you do.

    Unfortunately the actual report is paywalled – I would like to see how they actually score the banks. They have something on the criteria but not how they score them: http://bankqualityratings.lafferty.com/methodology.html

    Seems to me all we can conclude from this is that the previously little-known Lafferty Group has hired an expert in self-promotion.

    • Geof Kirby

      I’ll bet Standard is not in the top 50.

    • ursanegro

      capitec’s core market is the previously unbanked and people at LSM 1 through 5. it will be a long time before they offer credit cards. they don’t need too. there are more than enough poor people for them to convert to their customers and still make a hefty profit.

      • The fact that they can make money in that market is impressive enough. In a way it helps the other banks who battle in this market by taking pressure off them – but also reveals their weakness. If they get this right and also offer a good service to the premium end of the market, the other banks are going to look even more stupid.

        Back in the 1970s when computer-based banking first appeared, there were NO transaction fees and banks made all their profits on the difference between lending and deposit interest rates. It makes you wonder what the value is of the massive drop in price of computing power the last 40 years (a top of the line computer back then had about the speed and memory of today’s entry-level cell phone).

  • Jaco

    IF THESE BANKS ARE THE BEST IN THE WORLD, THEN WE REALLY ARE FKED !
    Capitec deserves the status, but the other banks are not even 1 star worth.
    …and this report is bullcrap.

  • Solly Dawood

    WTF are effing serious……overcharging for everything have to pay a effins deposit fee to put money into account no overseas banks do that…..to effing right what the f where they smoking

    • Willem Van Zyl

      you don’t effing say !

  • Zulaikha

    Capitec- Truely the best bank in the world.

  • BWToday

    April fools comes early. ABSA is abysmal.

    • Greg Gow

      Barclays Africa is a totally separate business unit to ABSA

      • BWToday

        You’re pasting the same thing over and over – without bothering to read the article

        • Greg Gow

          Sorry you right

        • Greg Gow

          Sorry you are right

        • He works for Barclays and is trying to ensure a disassociation between them and the disgrace that is ABSA, you know that thing they trying to sell. They say it is the economy, but that is just a good excuse to flog off that dead horse.

  • KoasConverter

    And for a long time people had been booing Capitec, Show them Capitec

  • Unskinnybob

    Good to know. Looking to make a departure from FNB.

  • Ray Mulder

    Capital I’ll give you another star if you increase the savings interest by another 1%.

  • Teyim DK

    The ABSA part makes be doubt the whole compilation and report. Ask former customers like us, i will give ABSA a 2 star

    • Q Anthonie Burger

      A 2 is still being nice.

  • Rob Charlton

    Pity that “the best bank in the world” is not a full service offering.

  • Capitec?? Explain the long lines of confused people at their extremely rare ATM’s at any given point in time? no thanks!

    • WilliamH

      Not sure why people need to use the ATMs when pnp or checkers tills are plentiful and cheaper to withdraw from. Using another banks ATM is also a not excessively priced option (actually sometimes cheaper than the other banks charge their own clients)

      • ursanegro

        simple. most people who bank with capitec live in places where cash is still king. that’s actually their main client base: the previously unbanked — and a lot of those people were unbanked for a reason.

        “Using another banks ATM is also a not excessively priced option (actually sometimes cheaper than the other banks charge their own clients)”

        i’m guessing you don’t spend that much time with LSM 1-5 folks [capitec’s core market]. *any* extra cost is an excessive cost. additionally, taking money out of an ATM is a private matter. getting extra money out of the till is seen by at least two other people — the cashier and the person in the queue behind you — and that’s not entirely the safest option, especially if you’re on your way to a place where cash is king [ie, the location.]

        • Will H

          “i’m guessing you don’t spend that much time with LSM 1-5 folks” good guess, but incorrect in this case.

          I point out only that if someone is prepared to pay an extra R4.20 to stand in the que at the ATM for the sake of privacy (R1.30 vs R5.50), then perhaps they are prepared to pay another R3.00 to stand in a que at a different banks ATM if it were shorter (R5.50 vs R8.50). I believe it is more a case of the client being being miss-informed, or a lack of access to the large retail outlets, or the refusal of service by the outlets cashiers/management towards capitec clients, despite the service agreements in place.

          Also note that this same LSM 1-5 group are the ones that make extensive use of account-less money transfers such as that offered by Checkers Money Market counters in order to get money back to their families outside of the cities. This too is a transaction in public (with a R9.99 flat fee) but not one that is shied away from for it’s privacy concerns.

    • Psyfo Nongcula

      Confused people???

  • Shamiel Seboa

    if you want to open a savings account then ditto Capitec is the bank to be at. I am curious as what else they offer except savings accounts and loans. Absa has a broad product range and the largest ATM network in the Country. Therefore am very interested in criteria they used to compile the list.

  • Shamiel Seboa

    if you only interested in applying for a savings account then capitec is a good bank. They however do not offer you a cheque account. from what I know they can only offer savings accounts and loans. Absa has large product range and has the largest network of ATM’s in the country. I am interested to know what criteria they used to compile the list.

    • Geof Kirby

      True but you can go into any Shoprite, Pick’n Pay and some others and draw a couple of thousand a day for, literally, a couple of rand. If you really have to have access to an ATM, you can use the larger banks ATMs at very high charges. BTW, who uses cheques these days ? And in case you have forgotten, Capitec pays interest on all savings accounts.

  • Frank Payne

    Yes

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