What is it that you like about your bank? What attracts or keeps you there?
Historically, South Africa's banking industry was known to be profitable to only four banks but the sector is rapidly evolving towards being a "marketplace without boundaries".
The digital space and introduction of new role players is forcing a lot of banks to review their approach. Interestingly enough, some of these banks are still traditional but have kept their staying power. We look at why that is the case.
For more on this we speak to Denker Capital analyst and portfolio manager Kokkie Kooyman.
Banking offerings have changed dramatically over the past 40 years, increasingly the pace has changed due to technology making a lot of things more available. It also has new players coming in. Banks essentially are about taking deposits, doing transactions for clients and then lending money out.Kokkie Kooyman, Analyst and portfolio manager - Denker Capital
When it comes to deposits, it is very important when clients place their savings or deposits with banks to know it's safe. So trust is very important. For banks, it is important who they lend money to.Kokkie Kooyman, Analyst and portfolio manager - Denker Capital
Technology has made it easier for new players to come in, TymeBank is a good example.Kokkie Kooyman, Analyst and portfolio manager - Denker Capital
How do banks transform without losing their uniqueness?
There is certainly a generation gap. The Spanish banks are not closing banks because in Spain it is a custom, especially for older populations, people like going to the branch and branches offer coffee. So, it almost becomes a meeting point. The younger generation won't go to a bank for coffee, they want things quickly done on the internet. Capitec, and we see that in emerging markets as well, you've got a client base that are not that well-educated and not financially confident enough, they also still like going to a branch. They like going to a branch because there is someone to help them and explain things to them.Kokkie Kooyman, Analyst and portfolio manager - Denker Capital
Banking has changed, the products have changed a lot and have forced banks to rethink products.Kokkie Kooyman, Analyst and portfolio manager - Denker Capital
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