The latest All Media and Products Survey (AMPS) data on the South African banking sector shows that, while Absa retained its position as SA’s largest bank, Capitec has pushed past Nedbank into 4th place.
The AMPS results – based on the “main bank” population and not specific products – shows that Absa has retained the largest portion of South Africa’s 23.2 (2012) million banked population, covering 32.9% of the market. This is down from 34.9% in 2011.
New kid on the block, Capitec’s market share grew from 7.9% to 10.8% between the period of January 2012 to December 2012, showing 43% year-on-year growth for the bank.
This means Capitec has pushed past Nedbank, which currently has a market share of 10.7% (down from 11% in 2011), according to the AMPS data.
Massive marketing spend
The latest AMPS data has also revealed how much each of SA’s big banks – including Capitec – has spent on marketing between March 2012 – February 2013.
According to the data, the five banks spent a total of R1.75 billion in marketing over the period, with FNB spending the most – R562.3 million.
FNB CEO, Michael Jordaan noted in a tweet that “thanks to Steve”, the bank had reached a milestone 1.5 million active consumer cheque accounts – up 13% from 12 months ago.
Despite its large marketing spend, however, the AMPS data shows that FNB still lost market share, albeit marginally.
In contrast, Capitec, with the lowest marketing spend of R93.4 million, managed to boost its market share.
“It’s not time to state that we have comfortably surpassed Nedbank yet (in terms of market share) but it is nevertheless clear that we are now becoming a significant threat to the bigger banks with a much lower advertising spend on our side,” Capitec said.
“This indicates to [us] that our message resonates more with the market to be able to still get through to the market in a situation where the other players combined spend so much more to advertise their brand.”
In posting its annual results in March 2013, Capitec reported that its total client base increased by 26% to 4.7 million active clients in the previous financial year – of these, 3.1% were cell phone banking clients, the bank said.
“The significant growth in new clients who are depositing their income with us is a clear indication that the public trusts Capitec to meet their core banking needs,” said Capitec’s executive of corporate affairs, Carl Fischer.
“It also demonstrates that our unique banking model..is highly compelling and we are confident that we will continue to increase our market share going forward.”