How SA's new banks are shaking up the market to benefit customers
Heightened competition is also coming to the business banking market. Capitec, previously only a retail bank, bought Mercantile Bank
The past year has been momentous for the banking industry as the regulator opened the market for competition leading to new entrants, which are preparing to compete aggressively against incumbents. TymeBank, Bank Zero and Discovery Bank are all in the process of launching after receiving the requisite approvals during the year. Upping the ante will see a resurgent African Bank competing for customers, Capitec entering the business banking space and Investec consolidating its offering for the larger corporate market.
This all portends well for the customer. Lower fees and improved service should be the natural outcome of these market dynamics, said Kuben Naidoo, deputy governor of the Reserve Bank and CEO of the Prudential Authority. He hopes the disruption brought by new technology will also see underserved areas of the market embraced by the industry. “People in the townships think they are underserved, so we can’t disregard 70% of the population in a market. There is a degre...
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