Along with FNB, Brand Finance have given both banks a brand strength rating of AAA–, making them two of the strongest brands across all business sectors.
Capitec’s success has been anchored in its simplified approach to banking and by offering affordable products to give it a competitive edge over the other major banks who provide more complicated product offerings.
Earlier this year, Capitec emerged as the bank South Africans are most satisfied with and for a second consecutive year, it was named the best bank in the world. Together with FNB, Capitec was named among the top 10 most powerful banking brands globally.
“South African commercial brands help to fly the country’s flag high – domestically and internationally. In today’s market, it is crucial that we stand apart from the crowd. The competition is no longer only on a local stage, organisations now compete on the global stage,” Dr KLM Makhubela, Brand SA CEO, said.
Overall, SA’s banking sector accounts for a quarter of the total brand value of all companies evaluated, with the nine banking brands – Standard Bank, Absa, FNB, Invested, Nedbank, Liberty, Wesbank and First Rand – recording collective brand value of R100 billion.
Standard Bank remains the most valuable bank with a brand value of R20,7 billion, followed by Barclays Africa (Absa) valued at R18,3 billion and First Rand with a brand value of R15,9 billion.
Investec placed fourth in the banking sector, improving its brand value by 7% from last year to R13,7 billion, followed by Nedbank whose brand value declined 4% to R12,8 billion this year and Liberty Holdings, which ranks as the sixth most valuable banking brand in SA, valued at R5,3 billion – up by 7% from last year.
Capitec ranks as the seventh most valuable banking brand.
Overall, MTN remains the most valuable brand in the country, with a brand value of R40,8 billion – up 10% from last year, but 30% lower than its peak in 2014, illustrating a downward trend for the telecommunications giant.
Valued at R24,3 billion, Vodacom is the second most valuable overall brand in the country. “Should MTN continue its regressive trend, it may be that Vodacom closes the gap and usurps MTN as South Africa’s most valuable brand in the near future,” the report states.