ABSA beats out FNB as Africa’s most valuable bank brand

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David Haigh, from Brand Finance, said that although FNB, known for its innovation, came in second place there is no doubt that the bank is still growing.

“There are two measures that we are looking at. One is brand strength where we look at a variety of measures including customer perception, quality of products, brand equity and so on. And FNB does very strongly on that,”said Haigh.

“The second thing we look at is absolute scale – how much revenue do these brands actually generate now and into the future. ABSA has a slightly higher projection according to the equity analysts.” 

(WATCH VIDEO: Exploring ABSA’s Payment Pebble)

While ABSA took the top spot on the continent, Wells Fargo was named the world’s most valuable bank brand. Haigh said much of Wells Fargo’s success comes from their focus on customer service.

“You find, certainly in the UK, with some of the more cynical and tired banks that the average number of products they sell to their customers is one to one and a half. Whereas with Wells Fargo once they have a relationship they try and develop as many products as possible.”

(READ MORE: Absa SME Index declines due to economic slowdown)

On a global scale the Chinese economy is growing at a phenomenal rate, rapidly approaching the same size as the US economy. The Asian country’s banks, which have been a success domestically, have now expanded abroad.

“In London, five years ago you did not see any Chinese bank presence, now they’re everywhere all around the Bank of England we get the head offices of the Chinese banks and there’re growing very fast,” said Haigh.

He adds that with the growing number of Chinese banks in Africa, it will be interesting to see how Chinese banks leverage themselves on the growth of the African economy.