JOHANNESBURG – A study by accountancy firm PricewaterhouseCoopers (PwC) has backed South Africa's big four banks to stand their ground against a slew of new digital banks expected to increase competition in an industry last rocked by the entry of Capitec in 2001.
The firm said yesterday that Nedbank, Absa, Standard Bank and First National Bank (FNB) would rise to the challenge posed by new entrants by learning and employing the same tactics that have made global digital banks a real threat to their traditional counterparts.
Chantal Maritiz, a partner in PwC’s financial services division, said unlike their challengers, the four universal banks had the advantage of being able to serve a sizeable share of South Africa’s retail and corporate banking customers.
“We believe that the four universal banks can, and will, rise to the challenge posed by new digital entrants, by learning and employing the same tactics that have made digital banks a real threat to their traditional counterparts,” Maritiz said. “Not all banks will succeed in this new environment, but those quickest to adapt will benefit and capture a disproportionate share of the future banking market.”
The Patrice Motsepe-backed TymeBank has recently soft-launched with limited services, the growth of branchless.