Banking Industry in South Africa Market Report 2022 - Demand for Credit is Rising and Increasing Risk of Bad Debt

DUBLIN, Nov. 15, 2022 /PRNewswire/ -- The "Banking Industry in South Africa 2022" report has been added to  ResearchAndMarkets.com's offering.

South Africa's banking sector is well capitalised and its capital adequacy and liquidity ratios have remained well above minimum statutory requirements. Total banking sector assets increased in the year to end-March 2022, with increases reported in gross loans and advances, investment and trading securities and short-term negotiable securities.

Profitability improved significantly. However, the operating environment remains highly volatile and the banking sector is facing elevated domestic and global risks, including the possibility of being placed on an international grey list over South Africa's failure to implement adequate measures to prevent illicit money flows.

Trends

Mobile and digital banking are key drivers of financial inclusion in South Africa. Despite the uptake of digital banking, cash transactions are prevalent, and banking activity continues to be dominated by cash withdrawals, which are often made at supermarket till points. Many banks are consolidating and closing underserved branches and ATMs. Demand for credit is rising, and rising inflation and interest rates are placing consumers under growing pressure and increasing the risk of bad debt. Cybercrime poses a growing threat to banking service providers and their customers, and money-laundering is on the increase.

Financial Inclusion

South Africa's formally financially included is high at over 90% and various banks offer products for low-income earners. Co-operative financial institutions and microfinance institutions play a fundamental role in financial inclusion. Stakeholders say that migration to formal savings platforms has accelerated since 2020.

Report Coverage

This report covers the banking industry in South Africa including the major commercial banks, development banks, central bank, digital banks, microfinancing and stokvels. It includes comprehensive information on the size and state of the sector, industry statistics and performance indicators, rankings, corporate actions and other developments.

There are profiles of 81 companies including the major banks such as FirstRand (FNB), ABSA, Standard, Nedbank, Capitec and Investec, development banks such as the Land Bank and relatively new players such as TymeBank and Bank Zero.


Key Topics Covered:

1. INTRODUCTION

2. DESCRIPTION OF THE INDUSTRY
2.1. Industry Value Chain
2.2. Geographic Position
2.3. Size of the Industry
2.4. Key Success Factors and Pain Points

3. LOCAL
3.1. State of the Industry
3.2. Key Trends
3.3. Notable Players
3.4. Corporate Actions
3.5. Regulations
3.6. Enterprise Development and Social Economic Development

4. AFRICA

5. INTERNATIONAL

6. INFLUENCING FACTORS
6.1. The War in Ukraine
6.2. Economic Environment
6.3. COVID-19
6.4. Financial Inclusion
6.5. Technology, Research & Development (R&D) and Innovation
6.6. Government Support
6.7. Labour
6.8. Cryptocurrency
6.9. Crime
6.10. Environmental Issues

7. COMPETITIVE ENVIRONMENT
7.1. Competition
7.2. Ownership Structure of the Industry
7.3. Barriers to Entry

8. SWOT ANALYSIS

9. OUTLOOK

10. INDUSTRY ASSOCIATIONS

Select Companies Mentioned:

• Absa Bank Ltd
• Access Bank South Africa Ltd
• African Bank Ltd
• African Dawn Capital Ltd
• Afriticket System (Pty) Ltd
• Agribel Capital (Pty) Ltd
• AgricReview (Pty) Ltd
• AgriRewards (Pty) Ltd
• Albaraka Bank Ltd
• Alicerose Nominee (Pty) Ltd
• All In One Vermietung GmbH
• API Capital (Pty) Ltd
• Axis Security Services Ltd
• BA Excepted Group Life Scheme Ltd
• BA Holdco Ltd
• BANCO Bocom BBM SA
• Bank of China Ltd
• Bank of Taiwan Co. Ltd
• Bank Zero Mutual Bank
• Barko Financial Services (Pty) Ltd
• Baroda Pioneer Asset Management Co Ltd
• Batho Bonke Absa HDSA Employee Trust
• Bemax International (Pty) Ltd
• Bidvest Asset Management (Pty) Ltd
• Blue Holdings (Pty) Ltd
• BNP Fortis Factor NV
• BNP Paribas Commercial Finance Ltd
• BOC International (China) Ltd
• BoCom International Holdings Company Ltd
• BOCOM Wealth Management Co Ltd
• Buyers Trust Investment Solutions (Pty) Ltd
• C T International Financiers (Pty) Ltd
• Capital Harvest (Pty) Ltd
• Capitec Bank Ltd
• Cavalry Holdings Ltd
• CCB Financial Asset Investment Corporation Ltd
• CH Risk and Securities (Pty) Ltd
• China Construction Bank Corporation
• Citibank N.A.
• CNH Industrial Capital Europe SAS
• Co-Operative Switch (Pty) Ltd (The)
• Deutsche Bank AG
• Development Bank of Southern Africa
• Diners Club (S A) (Pty) Ltd
• Direct365Online Ltd
• Discovery Ltd
• East Africa Investment (Mauritius) Ltd
• FHP Managers (Pty) Ltd
• Finamics Accounting Services (Pty) Ltd
• Finbond Group Ltd
• FinGlobal Finance (Pty) Ltd
• FireID Payments (Pty) Ltd
• First Garment Rental (Pty) Ltd
• FirstRand Bank Ltd
• GBS Mutual Bank
• Geniob Trading (Pty) Ltd
• Gloster Farm (Pty) Ltd
• Golden Fountain Finance Ltd
• Grindrod Bank Ltd
• Habib Overseas Bank Ltd
• HBZ Bank Ltd
• HKFT Properties (Pty) Ltd
• HSBC Bank PLC
• ICICI Bank Ltd
• Imfundo Finance (RF) (Pty) Ltd
• Industrial Development Corporation of South Africa Ltd
• Investec Bank Ltd
• Ithala Development Finance Corporation Ltd
• JCB Finance Holdings Ltd
• JPMorgan Chase Bank N.A.
• Lewis Group Ltd
• Mortgage Max (Pty) Ltd
• MTN Group Ltd
• NBC Holdings (Pty) Ltd
• Nedbank Ltd
• NQ Plus Networks (Pty) Ltd
• Old Mutual Finance (RF) (Pty) Ltd
• Oltio Holdings (Pty) Ltd
• Ooba (Pty) Ltd

For more information about this report visit https://www.researchandmarkets.com/r/igl131

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