The trade union’s bank report offers insights to organisation members on the best offerings from the country’s financial services sector.
Capitec’s lower charges have also been attributed to the overall decline in charges across the industry.
(READ MORE: Reserve Bank disputes Moody’s downgrade of Capitec)
“We are paying a lot less than we used to pay on banking services than five years ago as there is still some dynamic competition that is keeping the charges from increasing,” Paul Joubert, senior researcher at Solidary Research Institute told CNBC Africa.
Joubert added that in the basic market it was Capitec Bank which contributed immensely to driving down the trends in the sector.
Due to increased pressure from Capitec, Joubert said other banks such as First National Bank (FNB) and Absa had improved significantly.
“If you look at Absa with its Transact account, FNB with their Easi account and Standard Bank with its Access account you can see that they are trying to do what Capitec has been doing,” added Joubert.
He further noted that due to lucrative offers on the market, Capitec was taking customers from the other bigger banks and also from the high income earners.
According to analysts, banks were now offering lesser service charges for selected transactions but for customers requiring fancy services the charges remain high.
Matthew Warren, head of financials & retailers at First Avenue Investment Management said banks were fighting to extract more value per customer which meant increased product offer.
“What you would want are more products per customer which creates more revenue per customer so that’s what the banks are trying to go after,” Warren said.
On future prospects in the sector, analysts said the industry was likely going to see some consolidation especially in smaller banks.