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Writer's pictureJadene Hartley

South Africa’s Battle of the Banks

Unpacking Value-Based FinTech Innovation





South Africa’s consumers are extremely price-sensitive and won’t hesitate to migrate to another bank if they feel like their current financial service provider is no longer offering them competitive pricing. 


Moreover, our consumers are growing more tech-savvy by the day, and are ready for digital financial services. Marketing companies in Cape Town have an opportunity to introduce value-based digital solutions strategies within the financial sector, which can understand and meet customer needs, and is a sure way to position financial service organisations for digital success. 


In this article, Unscene looks at big banks within South Africa’s financial industry and unpacks just what makes these banks elite, by comparing their value-based digital solutions and their customer-centric initiatives. 


South African consumers want value for money, richer digital experiences, tailored offerings and consistency across all channels from their financial services provider. 




The Course of Credit Never did Run Smooth 


Digital marketing agencies in Cape Town can pull up solid data from consumers when designing a value-based digital solutions strategy for a bank, to determine what consumers are most cost-conscious about. Price comes to mind, as well as 

security risks and poor customer service. These are all important factors, which if not paid attention to, can cost a bank more than just money: It can cause loyal clients to migrate to new banks - which ultimately reflects badly in data and it can prevent them from expanding into new territories. 


Consumers seek to be valued as a customer, to be given the right tailored products, and to gain access to the latest digital services and initiatives. Let’s look at FNB, a bank with one of the best digital platforms in Africa.




FNB 


FNB trades as a division of FirstRand Bank Limited and is the oldest bank in South Africa. When you look at what makes FNB truly unique and elite, you have to admire their track record. FNB has persevered through various challenges within our history and they have evolved with South Africa, adapting to rapid economic, social and political changes. 


FNB oozes brand value and considers sustainability as a business practice, which creates value for stakeholders. Adrian Gore (CEO of Discovery) would classify this as a serial innovation approach, whereby FNB not only seeks to digitalise its services, but also create products that are relevant to customers’ most pressing FinTech needs. 


FNB’s brand value is amplified by its excellent FinTech banking (financial technology that assists with the provision of effortless financial services) and is what separates them from the rest of the banks. 


This value-based organisation is built on the core values of: 


● Accountability; 

● Pride; 

● Respect; 

● Ubuntu. 


Marketing companies in Cape Town can look at FNB’s value-based branding strategies and track the effectiveness thereof over the decades and measure its successes. 


A significant development in their history took place when FNB was delisted from the JSE during its transition into a wholly-owned subsidiary of FirstRand back in 1998. At the time, Rand Merchant Bank Holdings and Anglo American merged. FNB was reenlisted on the JSE shortly after and FirstRand formally merged into a single entity rendering WesBank, FNB and RMB divisions of FirstRand Bank. 


Since its inception, FNB has been a step ahead of most banks in South Africa regarding their value-based services; they have evolved with technology and can now offer incredibly advanced digital solutions.



Brand Design 


FNB’s customer-centric nature surely reflects in more than just their customer service. It strongly reflects in their logo; the Acacia tree in their brand logo is a suitable representation of FNB’s history. Their logo signifies that they have deep roots in South Africa and that they grow with their clients and their country. 

FNB never stops rewarding clients who help them evolve. 



Loyalty Programme 


FNB rewards customers on how they bank with eBucks Rewards. Digital marketing agencies in Cape Town can easily see how FNB adds value to their services by enabling their clients to save money and do more while they earn and spend their eBucks. 


FNB has a whole range of terrific rewards for its patrons: 


● Rewards on FNB Smart Device; 

● Rewards on Checkers & Shoprite purchases; 

● Rewards on electricity; 

● Rewards on airtime; 

● eBucks Lifestyle Rewards; 

● Lounge Rewards. 


eBucks is just one of the many digital solutions FNB offers. Marketing companies in Cape Town have elevated FNB’s value-based digital solutions to a level of excellence that other banks are trying to compete with.



Digital Domination 


Over the years FNB has launched many value-based digital solutions which make banking effortless for their clients both locally and internationally. They have dominated banking’s digital landscape for numerous (consecutive) years, and was (once again) voted Most Innovative African Bank at the 2017 African FinTech Awards and South Africa’s Best Digital Bank in 2020 by SITEisfaction. 


FNB and non-FNB clients are able to deposit PayPal funds straight into their bank accounts with little commission attached to the otherwise admin-heavy transaction, by simply creating an online profile with FNB. 


Another layer that FNB managed to add to their value-based digital solutions is their dotFNB stores. A truly unique type of cashless branch that facilitates a digital banking experience with a dash of retail. From the colour scheme to operating hours, the dotFNB stores are a clever way to migrate not-so-tech-savvy clients onto their line of digital products and solutions, as well as to attract new clients through the retail experience. 


Some digital services clients can interact with include: 


GEO Payments: A service which allows you to transact with another FNB account holder through Bluetooth connection. 


FNB Connect: An Internet service provider which operates as a business division within FirstRand Bank Limited. You can easily work off an FNB sim that offers loads of data deals. 


FNB Mobile App: The mobile app allows you to manage your finances directly from your smartphone and gives you free access to the premium money-saving app, The ENTERTAINER - which is filled with restaurant and leisure activity deals. 


Gadgets: The Microsoft Surface gadget assists in determining a client’s profile, and video-conferencing booths connect clients with specialists from various departments such as Business Banking, Home Loans and Share Investing. 


Customers can easily apply for and interact with these digital services by browsing on the smartphones, tablets and other devices within the store, all the while indulging in a high-tech experience that merges education with digital banking. 


It’s clear that FNB is a banking giant who wants to cement its stronghold on the digital banking space and continue to revolutionise the way people bank.


Another bank hellbent on revolutionising not only the way in which people bank, but also their position as a brand, is Absa.




Absa 


The origin of Absa is closely tied into the old South African regime and was originally established to harness Afrikaner economic power, representing the minority in Africa, at the time. The merging of Volkskas (among other banks) led to Absa’s creation in a time when South Africa’s economy was dominated by English capital. When Barclays acquired a stake in Absa, a power struggle erupted between the two forces. 


Decades later, Absa went through somewhat of a rough patch before they embarked on their brand emancipation - Barclays withdrew their stake in Absa, which forced the bank to make some tough decisions and finally innovate their products and services. This led to them rebranding themselves as completely and truly African, radically flipping their demographic. Their Africanacity brand now represents the majority in Africa, and is committed to finding local solutions to local challenges. Digital marketing agencies in Cape Town and New York have been hard at work in conjunction with Absa to rebrand their image and services, to provide clients across the African continent with value-based services which include retail, business, corporate and investment, and wealth management solutions. 


Absa Group Limited is one of Africa’s largest diversified financial services groups, with a strong financial and insurance presence in more than 10 countries across the African continent, and is listed on the JSE. Marketing companies in Cape Town have tackled Absa’s rebranding programme which unites Absa’s operations across Africa behind a single identity, purpose and strategy. 



Brand (Re)design 


Absa‘s separation from Barclays reflects its new identity as a standalone African bank, and is an expression of ‘bringing possibility to life’. Digital marketing companies in Cape Town like Grid Worldwide and Yellowwood, in conjunction with OgilvyRED (New York) designed a complete value-based rebranding strategy for Absa. 


● Absa’s branch renovations strategy has been redesigned to be ‘customer obsessed’, and is modern, more approachable, more dynamic and more vibrant as it houses a wider spectrum of reds. 


● The Absa logo has replaced Barclays’ branding on thousands of asset types, including ATMs, uniforms, branches, offices, cards, stationery, forms, apps, and websites.


● Their new logo features a more human and approachable feel than its predecessor by showcasing ‘‘absa’ in lower case. 


● Their rebranded button-like logo is stripped of complexity and integrates comfortably among popular new brands in a digital space. 


● As part of the marketing and communications strategy, the renaming of the subsidiaries is being celebrated with an array of events across Africa to create awareness of the name change. 


Absa has not allowed the rebranding programme to affect customers’ product or service functionality, and in addition, have made some alterations to their loyalty programme, which better aligns with their brand. 



Loyalty Programme 


Some great rewards offered by the Absa Rewards Programme include: 


Cashback: Up to 1.5%. 


Groceries: Cashback and discounts at Woolworths, Pick n Pay and Food Lover’s Market. 


Fuel: Up to 30% cashback when you fill up or shop at Sasol. 


Health and Beauty: Up to 30% cashback on health and beauty purchases at Dis-Chem. 


Absa has also been on a quest to revamp its digital banking landscape.



Digital Redemption 


Marketing companies in Cape Town and New York have worked closely with Absa in reshaping its new corporate strategy, which is fit for a forward-looking business in a digital era.

Although they’ve experienced success in many of their digital initiatives, consumers are still skeptical about Absa not delivering on their brand promises. 


● Absa’s new mobile banking app is considered extremely user-friendly. There are, however, complaints about security, authentication and tracking payments on the mobile app. 


● Absa’s new mobile banking app (unlike many other banks) allows you to bank for free! It no longer depletes your mobile data. 


● Absa introduced consultants using iPads and other devices capable of performing banking operations in selected branches. These operations were previously confined to teller-based services. 


● The iPad offering includes four stand-alone insurance products that make legal, life and funeral cover seamlessly accessible to a higher number of South Africans. The legal cover, known as 'Absa Law For You', gives free legal advice, cover for court proceedings, and mediation on any legal matter to policyholders. 


Finally, we move onto our modest, affordable-yet-convenient bank, Capitec. 




Capitec 


Capitec’s unwavering commitment to improving clients’ financial lives is achieved by following fundamentals that govern the actions of everything the bank does every day. Capitec has grown into a large financial empire in less than 2 decades and continues to be a pioneer of affordable and convenient banking, inspiring people to bank smartly. 


Capitec Bank Holdings Limited was registered as a bank controlling company and was listed in the banks’ sector of the JSE Limited in 2002. They started as a small micro-lending financial services company and have grown into a bank that, in 2019, reportedly signed 266 000 new client accounts. That’s roughly 5 times the size of the Cape Town stadium! 


Digital marketing agencies in Cape Town could help further Capitec’s brand innovation in their price-sensitive value-based branding strategy because Capitec’s innovation simply doesn’t come at a high cost to consumers. 



Brand Design 


Capitec’s brand is simple, transparent and sophisticated, and more importantly, user-centric. Every touchpoint is designed with these core values in mind, from the design of each branch to pricing models and banking solutions. 


Each Capitec branch is deliberately designed to be accessible and welcoming, with an open environment featuring no double-security doors, and a first-of-its-kind ticketing system, based on each client’s individual banking needs. 


● A client is greeted; 

● They receive a ticket based on their banking needs; 

● They are served by one consultant throughout the banking experience; 

● Side-by-side consulting takes place - the client can see the screen while the consultant is inputting data.


Clients can feel in control of the process and can experience Capitec in a truly comprehensive way. 


● Capitec keeps its pricing simple by having five fixed price points that clients need to know, along with simple and easy communication, contracts, product design, UX and screen design. 


● Capitec has severely reduced its EFT rates and is a strong competitor when it comes to real-time payment fees. 


Marketing agencies in Cape Town who have helped Capitec on their journey have been able to design value-based product and service offerings that span into territories beyond just financial safety. 



Loyalty Programme 


Capitec offers great value for money and provides their clients with the very best benefits that align with their worldviews. They offer a programme called Live Better Rewards, which qualifies clients for discounts on certain products and services from participating dealers and stores. 


Music: Capitec’s JOOX Live Better Benefit offers access to all the music you need. 


Entertainment: DStv Live Better Benefit offers you a 15% saving on your 12-month DStv Compact subscription. 


Education: Through Capitec’s GetSmarter Live Better Benefit, they enable you to study further by granting you R4 000 in online courses. 


Transport: Simply use your Capitec debit or credit card to purchase a Greyhound or Citiliner bus ticket online and you’ll get a 15% discount. 



Digital Uprising 


Capitec has taken South Africa by storm with its effortless banking methods, value-based products and digital solutions. 


A digital solution that comes to mind is an innovative solution to banking, called Global One, which allows you to transact, save and access credit using remote banking. No time to visit a branch? No problem! Capitec offers remote banking services that are accessible from your cellphone or the Internet.


Capitec prides itself in the effort they put into ensuring every product and service is rolled out into every branch, regardless of the size or location. Such as on-demand ticketing and real-time fingerprint authentication. 


P.S. Capitec was also the first bank to pilot fingerprint recognition and biometrics, which was then linked to the Department of Home Affairs in real time.




Closing Balance


Capitec has done a brilliant job of making a way where there was none, and is challenging heavyweights to do better. FNB, Absa and Capitec have each experienced the radical fluctuations within South Africa’s economy. The need for them to evolve with society and technology has sparked radical branding strategies for marketing companies and branding agencies in Cape Town. 


In Unscene’s next article, we look at convenience goods and services like DigsConnect, SweepSouth and Mr Delivery, and examine just how these brands have added value to their products and services. 


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