According to new banking data research conducted by group Nielsen, Capitec Bank has largely extended its lead over South Africa’s other big four banks to become the most-used primary bank in South Africa. A lot would say this makes Capitec the best bank in South Africa.
Nielsen’s annual survey asked consumers which banking institution they use as their main bank, in other words, which bank account they use to receive their monthly salary and use primarily for transaction every month. The results showed that last year in 2016, Capitec continued to bite into the market share of its close competitors.
The Nielsen data is based on responses from 2328 banking consumers, weighted to reflect the 22.9 million banked population.
29% (Three out of 10) banking customers pointed to Capitec as their primary bank, 11 percentage points greater than FNB, with 18%. Absa tracked behind at 17%, followed by Standard Bank with 15% and Nedbank with 10%. In conjunction with the historical data as tracked by Nielsen, Capitec has shown the greatest growth over the past decade, moving from only two percent of primary accounts in 2006, with a notable climb in marker share starting in 2012.
Conversely; Absa and Standard bank who are South Africa’s bigger banks have seen their share slip, while FNB and Nedbank have remained somewhat stable.
Capitec has made major incursions into the South African banking market, slowly eating into the middle market often covered by the other retail banks. At latest reporting, Capitec overtook both FNB and Nedbank in terms of banking clients, becoming the third biggest retail bank in South Africa by this metric. In the last quarter of 2016, the bank launched its first Capitec credit card offering, with the aim of drawing in higher-income clients. Having listed on the JSE in 2002 at R2, Capitec’s share price closed at R702,92 on Friday the 27th of January 2017.
According to Likemoney’s “Like” function which allows all consumers to rate their favourite financial products, currently, the Capitec Savings Account is the most liked product on the whole website followed closely in fourth place the Capitec Global One Account.