“Our banks have invested in technology and trying to use that technology, particularly mobile technology, to migrate customers to those channels. They can more efficiently service them, which is helping from a cost perspective but also from a customer retention and a customer-centric perspective,” Johannes Grosskopf, banking and capital markets leader at PWC Africa told CNBC Africa.
PricewaterhouseCoopers have indicated that South Africa’s banks boast some of the highest capital levels globally. The financial results of the country’s four major banks have also reflected the economic health of the industry.
“If we look at the aggregate results of the banks, they’ve continued to grow the top line which is impressive – nine per cent growth in revenues. They’ve had a stated intention of looking at costs and have kept costs down,” Grosskopf indicated.
“Banks have really pulled those levers that they’ve said they wanted to, and it came out with a very good set of results.”
According to Ernst and Young, the first quarter earnings season shows that banks are operating from a stronger position.
Grosskopf added that they have also improved a number of their processes which, as a result, ensures that they retain their customers.
“Their on-boarding process has been made easier over the last year. Banks really have to hold on because if somebody else is making it easy for you to join, then you better make sure that the customer you’ve got is happy with the service they get from you.”