Brand Finance has ranked South African bank FNB as having the strongest banking brand in the world – narrowly beating Capitec Bank, which ranked second.
According to the group’s 2023 Banking 500 report, FNB achieved the top rating out of all the banks measured by the group in the Brand Strength Index (BSI).
The BSI determines the Strongest Banking Brand by using brand inputs, brand equity and performance.
“In order to adequately understand the strength of brands, we conduct a structured, quantitative review of data that reflect the ‘Brand Value Chain’ of brand-building activities, leading to brand awareness, perceptions and onwards to brand-influenced customer behaviour,” said Brand Finance.
The group used original market data from over 150,000 respondents in 38 countries and across 31 sectors to determine the strongest banking brand. Along with the BSI score out of 100, brands are also graded on similar levels to those used by ratings agencies.
FNB scored a BSI of 93.00 out of 100 and received a AAA+ rating.
Brand Finance said that the bank’s online and mobile banking services made it easy for customers to check their accounts and manage their finances, while the group itself has been recognised for sustainable practices and received awards for its environmental, social and governance (ESG) performance.
In addition, FNB has been regularly ranked highly as one of the top banks in the world for its customer service.
Capitec Bank ranked second and came incredibly close to FNB in the rankings – being edged out by decimal rounding.
Brand Finance said that Capitec offers its customers an affordable price point for its online banking services, making it stand out against its competitors.
Capitec also strengthened its position with partnerships with established brands, such as partnering with Samsung Pay giving customers access to convenient contactless payments.
Despite Capitec also receiving a BSI of 93.00 out of 100 with a AAA+ rating, it came second as Brand Finance rounded off its data to two decimal points, and FNB was slightly ahead.
Capitec has thus come in second place in the Strongest Banking Brand rankings for two years in a row.
Standard Bank (21) and Nedbank (25) made the top 25 in the Strongest Banking Brands list, while Absa (65) made the top 100, and Rand Merchant Bank (115) and Investec (132) both made the top 200.
Standard Bank saw the most significant yearly growth in its BSI score, with a 6% change.
FNB, Capitec, Nedbank and Absa also saw growth in their BSI score, while Investec and Rand Merchant Bank saw their BSI scores and rankings decline.
Jeremy Sampson from Brand Finance said that the organisation was pleased to see brands from Africa high on the list. He added that the Strongest Banking Brand ranks are highly contested across the world, and being number one on the list is an incredible achievement.
The BSI scores and rankings of South Africa’s banks are listed below:
|Brand name||2022 BSI rank||2023 BSI Rank||2022 BSI||2023 BSI||Change|
|Rand Merchant Bank||95||115||78||76||-2%|