Capitec Challenges the Big Brands
The South African banking industry is going through some interesting times, what with Barclays looking to sell off its Absa share, and recent reports that all banks (not only FNB) have been closing branches throughout the country.
Now Business Tech reports that the ‘top spot’ held by the ‘Big 4’ – Absa, Nedbank, FNB and Standard – is being challenged by upstart Capitec, at least in terms of client numbers. Capitec’s aggressive marketing and competitive fee structure has netted it an additional one million customers in the year ending February 2016, bringing its numbers up to 7.3 million, and growing its headline earnings by 26%. That’s better growth by far than any of the ‘Big 4’, and may even have overtaken FNB, which released interim figures in December of 7.2 million customers (which would indicate the only drop in the bunch).
Standard Bank still leads the pack with 11.6 million customers, and it ranked top of the pile in the Brand Finance Report that estimates its brand value increased by 4.4% to $1.32 billion (R19.5 billion) over the past 12 months. Capitec was a new entry to the report, and was valued at $280 million (R4.15 billion).