Standard Bank has reached the 10 million customer mark in South Africa after attracting one million more new clients in 2021.
Although it is the biggest bank in Africa in terms of assets – and is already 159 years old – Standard Bank and the other “big four” have struggled to reach the 10 million customer mark, while the 20-year-old Capitec reached that milestone in 2018.
In comparison, Absa had 9.7 million customers across different geographies early in 2020. FNB had over 10.48 million customers in the year ended on 30 June – but only 8.65 million of those were in SA. Nedbank reported 7.4 million customers at the end of June 2021, without clarifying how many of them are in SA or other African countries where it operates. Capitec led the pack, reporting 16.8 million customers by the end of August 2021.
Standard Bank attributed its customer acquisition growth to its investments towards digitising the bank.Â
“Standard Bank has ensured that it has rapidly transformed its digital offerings and platforms. Unique customers logging on to the app has increased by 35% in the last year. Engagement with the platform has also increased, with time spent on the app increasing by 70%,” the bank said in a statement.
Standard Bank’s head of consumer and high-net-worth clients in South Africa, Kabelo Makeke, said as the bank moves towards being more digitally led, it has “de-cashed” branches and built a network of 50 000 Instant Money partners, the largest in the country. In 2021, just under seven million Instant Money recipients used that service.Â
Standard Bank’s half-year results presentation showed that digital transaction volume in the consumer and high-net-worth customer segments grew 30% in the first six months of 2021 compared to 2020. Overall, digital transactions among its customers have increased by 22% this year.Â
Makeke said the bank has also seen a dramatic spike in the use of virtual cards, which it launched in 2020. The issuing of virtual cards grew by over 300%, thanks partly to the bank’s ability to create virtual cards in US dollar and a few other currencies.Â
But the bank isn’t leaving less tech-savvy customers behind as it “streamlines and de-cash” its branches. It said the recently announced establishment of branches inside Pick n Pay stores will work together with digital banking offerings to provide customers with choices on how they want to transact. It said more than 30 Pick n Pay stores now have these convenience branches. -fin24
