Capitec eating into SA banking giants

·27 Nov 2013

New research shows the rapid strides being made by Capitec, a relative newcomer to the South Africa’s banking sector, in accruing customers – at the expense of established giants in the market.

This is according to the latest data from Dashboard and World Wide Worx, unveiled this week (26 November 2013), as part of a collective Mobility 2014 study.

Out of a sample of 827 respondents, 24% said their primary account was with Absa, down from 32% in 2012, and 31% in 2010.

FNB/Rand Merchant Bank slipped down to third position from the prior year, with 20% in 2013, from 24% in 2012, and 26% in 2010.

Standard Bank moved up to second position, with 21%, although this is also down from the prior year’s 22% and from 24% in 2010.

Capitec was the biggest winner in the survey, accounting for 19%, up from 11% in 2012, and from 4% in 2010.

The Post Office accounted for a 2% share in 2013.

In September, Capitec Bank reported an 18% rise in active clients to 5.016 million, in financial results for the six months ending August 2013.

The survey also supports earlier AMPS data which indicated that Capitec has overtaken Nedbank as the 4th biggest bank in South Africa by market share.

The research found that FNB/Rand Merchant Bank, leads the way in mobile phone banking penetration, with 44% (46%) of clients using that service; however, other institutions were shown to be catching up with Nedbank at 39%, up from 24% in 2012, Standard Bank at 39% (23%), Capitec at 36% (27%), and Absa at 33% (20%).

Almost all respondents (94%) said they still use an ATM to conduct their banking activities, with 84% still visiting a branch. Those people using Internet banking on a laptop or PC climbed to 15%, from 11% in 2012.