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Capitec ranked 1st in SA, 3rd in world - global banking study

Oct 25 2018 15:26

For the third year in a row, Capitec Bank was ranked the top South African bank in the Lafferty global rankings and came in third overall in the world.

The Lafferty Group provides research to the global banking industry.

Capitec was praised for its continued success, especially for its customer focus and "digital prowess".
 
According to this year’s Lafferty Banking 500 study – a survey of 500 banks worldwide – Capitec is one of only eight banks worldwide to achieve a five-star “top quality” rating.

Institutions from 72 markets across all global regions were included in the survey, ranging from large global banks to small regional institutions.

A star rating was applied as part of the benchmarking of banks, with five stars for the best performers, and one star at the other extreme. Roughly one-third of the banks in the study achieved a four-star quality rating, while two-thirds were rated three-star or lower.
 
“The Lafferty ranking is unique in that it goes beyond financial comparisons to factor in qualitative metrics such as strategy, culture, living the brand, digital advancement, management experience and customer satisfaction,” said Michael Lafferty author of the study and the founder of Lafferty Group.

Absa ranked 71; Finbond 11th; FirstRand 15th; Investec 420; Nedbank 196 and Standard Bank 337. The average star rating for banks in South Africa was 3.7. In the UK the average was 3.5, followed by Canada (2.9), Germany (2.8) and the US (2.8).

Capitec CEO Gerrie Fourie said in a statement that the Lafferty ranking is an encouraging validation of the work done by Capitec to build its brand, culture and digital touch points.

"Our belief is that banking should be simple, affordable and transparent and as we strive to be the best retail bank in the world, this recognition is a strong indication we’re heading in the right direction,” said Fourie.

The 19 metrics used to assess each bank were:

  • Loans to deposits ratio
  • Return on assets
  • Retail loans as a proportion of total loans
  • Equity as a proportion of total assets
  • Cash as a proportion of total assets
  • Excessive profit changes
  • Confirmed regulatory breaches
  • Strategic clarity
  • Strategic planning
  • Fulfilment of brand promise
  • Credible measure of customer focus
  • Customer satisfaction
  • Organisational culture
  • Investment in employee development
  • Leadership experience
  • Financial inclusion mandate
  • Digital vision and strategy
  • Digital dependability
  • Technological expertise at executive board level

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capitec  |  gerrie fourie  |  banking  |  financial services
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