INDUSTRY SURVEY
Ultimately, the winners will be those banks that
can execute flawlessly to achieve alignment to
these long-term trends.
KEY OBSERVATIONS
•
•
•
•
The likelihood of new entrants into the South African banking market is regarded as low.
The likelihood of a foreign entrant is considered to be higher than the establishment of a new local bank.
Bank executives acknowledge the threat posed by non-traditional competitors, such as retailers and mobile service providers.
Nearly half of respondents expect 10 - 15% of their after-tax profits to come from the sub-Saharan region (excluding South
Africa) in the medium term, with Nigeria, Ghana and Kenya regarded as key territories for growth.
• Growth potential, political stability and the availability of quality local talent are important considerations for executives when
expanding across Africa.
Big 4
reduce. In this scenario, the investor is therefore not
Leading banks are also adopting a more
The
banks
worse off. Participants viewed the growing level
holistic approach to customer relationships.
are
foreca
st to in
of government attention towards the role of the
They are analysing data to identify the
vest
banking sector in the economy as the third-most
needs of customers and inform more
important development affecting the sector. Most
granular pricing decisions. Most banks
respondents believe a twin peaks regulatory
sighted their client onboarding processes
model will benefit the South African banking
as a differentiating factor; however, some
system, despite some concerns about potential
acknowledge that the efficiency of their
each in
regulatory duplication.
onboarding processes could be improved.
t
‘The evolving competitive environment,
Attracting and retaining the right talent
three yhe next
ears.
coupled with the external developments, will require
remains a priority on the boardroom agenda.
banks to continually rethink their strategies,’ Grosskopf
This is even more of a challenge as authorities
concludes. ‘Executives will need to adapt to new trends that
continue to explore how best to regulate rewards in
may manifest over the medium to long-term. This means constant
the sector.
evaluation of business and operating models.
‘Ultimately, the winners will be those banks that can execute
STAKEHOLDER EXPECTATIONS
flawlessly to achieve alignment to these long-term trends.’
Although banks are positive about forecast ROE levels, they do not
Download the full PwC South African Banking Survey 2013 from
expect these returns to recover to pre-crisis levels. However, PwC
www.pwc.co.za.
believes that given lower gearing levels, the cost of equity may also
R3-R5
billion
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Email: [email protected] | Web: www.eworx.co.za
Edition 6
Subbed Banker 6 Industry Survey.indd 61
BANKER SA
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2013/07/18 8:02 AM