The competition for purchasers among South Africa’s retail banks is on, as big banks giving answers to Capitec’s disruptive model are gaining happier customers, says Consulta.
In compiling up to date South African Customer Satisfaction Index, the firm saw that Capitec customers remain the best satisfied in the retail banks. Nonetheless it is satisfaction levels have dipped the very first time in 4 years while that of competitors FNB and Nedbank are saved to the rise.
SA Customer Satisfaction Index: Retail Banks
|
Measured companies |
2012 |
2013 |
2014 |
2015 |
2016 |
|
Absa |
75.7 |
72.4 |
74.8 |
74.3 |
74.2 |
|
Capitec |
79.0 |
81.5 |
82.2 |
83.8 |
83.1 |
|
FNB |
79.5 |
79.5 |
79.3 |
79.8 |
81.3 |
|
Nedbank |
78.6 |
74.3 |
74.8 |
75.6 |
77.0 |
|
Standard Bank |
77.2 |
74.4 |
73.7 |
73.0 |
71.9 |
Source: Consulta
“The competitors are on. The residual banks have reacted recommended to their breakfast being stolen [by Capitec]. They’ve aimed at reduced income market and also have created strong value propositions,” said Prof Adr Schreuder, leader of Consulta.
He told Moneyweb Capitec’s dip may be due towards the pressure exerted on its infrastructure and subsequent service levels, whereas large infrastructure with the big banks could possibly have helped them reveal new offerings with relative ease.
Still Capitec achieved the best net promoter score (NPS) of 53%. NPS measures the chance that customers that is going to recommend the lending company to others in contrast to individuals who probably would not. FNB scored 47%, Nedbank 26%, Absa 13% and Standard Bank 7%. The average score across the publication rack 25%.
“Low loyalty scores really should be an area of great concern, particularly as brands such as FNB and Capitec market on their own on the ease of switching for their banks,” he explained.
He added that customer expectations are increasing through the industry and therefore an on the spot correlation between customer experience and customer care can influence customer loyalty. ?
In the last banks mainly competed on the product offerings and costs whereas the “new service economy” demands that banks not only compete on fees but on value at the same time.
“Most banks have experienced decreased lots of perceived value and South Africa’s slow economic growth – and low surge in disposable income and a net loss of disposable income C [means] most customers expect more from their banks whilst being in a position to pay more for your higher expectation,” he stated.
He declared that FNB has done well to look after increased expectations together with the launch a number of free, value-added services in mid-2016.
These services helped FNB overcome a downturn in customer loyalty in 2015 to tie with Capitec, both scoring 75.3. The two banks enjoy the most loyal customers while Standard Bank, which has a score of 63.1, appears to have minimal loyal customers. Overall customer loyalty has declined within the last three years to 68.7 in 2016.
While new services and services seems to be an excellent way for banks to conquer customers, their competitors can easily erode that advantage. He explained banks can gain true long-term advantages over their competitors by using staff, systems and complying with regulation which include Treating Customers Fairly. ??
The overall standard of complaints registered by local banks is presently at 21.2% balanced with the international benchmark close to 10%.
Prof Schreuder said the most widespread domestic complaints – cover anything from double debits to long queuing times, bank staff availability and a lack of customer comments C is usually solved with relative ease. However, local banks appear can not upscale easy solutions preventing similar problems from occurring from now on.
