According to Brand Finance, South African bank FNB has the strongest banking brand in the world, just beating out Capitec Bank, which was placed second.
According to the company’s 2023 Banking 500 study, FNB received the highest Brand Strength Index rating of every bank assessed by the group (BSI).
The BSI ranks the most powerful banking brands based on brand inputs, brand equity, and performance.
“In order to adequately understand the strength of brands, we conduct a structured, quantitative review of data that reflect the ‘Brand Value Chain’ of brand-building activities, leading to brand awareness, perceptions and onwards to brand-influenced customer behaviour,” said Brand Finance.
To select the strongest banking brand, the organisation analysed actual market data from over 150,000 respondents in 38 countries and 31 industries. In addition to the BSI score out of 100, brands are assessed on levels similar to those used by rating agencies.
FNB achieved a AAA+ grade and a BSI of 93.00 out of 100.
According to Brand Finance, the bank’s online and mobile banking services made it simple for customers to check their accounts and manage their finances, and the group has been recognised for sustainable practises and has received awards for its environmental, social, and governance (ESG) performance.
Furthermore, FNB has consistently been regarded as one of the best banks in the world for customer service.
Capitec Bank finished in second and was just beaten out by decimal rounding by FNB in the rankings.
According to Brand Finance, Capitec stands out from its competition by offering its consumers an inexpensive pricing point for its online banking services.
Capitec also reinforced its position by agreements with well-known companies, such as Samsung Pay, which provides clients with simple contactless payments.
Despite obtaining a BSI of 93.00 out of 100 and a AAA+ rating, Capitec ended in second place because Brand Finance rounded their data to two decimal points, and FNB was marginally ahead.
Capitec has consequently finished second in the Strongest Banking Brand rankings for the past two years in a row.
Standard Bank (21) and Nedbank (25) made the top 25 in the Strongest Banking Brands list, while Absa (65) made the top 100, and Rand Merchant Bank (115) and Investec (132) both made the top 200.
Standard Bank saw the most yearly gain in its BSI score, with a 6% increase.
FNB, Capitec, Nedbank, and Absa all witnessed increases in their BSI scores, while Investec and Rand Merchant Bank suffered decreases in their BSI scores and ranks.
Brand Finance’s Jeremy Sampson expressed delight that African businesses were prominent on the list. He went on to say that the Strongest Banking Brand rankings are hotly contested all across the world, and achieving number one on the list is a tremendous accomplishment.
South African banks’ BSI scores and rankings are mentioned below:
| Brand name | 2022 BSI rank | 2023 BSI Rank | 2022 BSI | 2023 BSI | Change |
| FNB | 4 | 1 | 92 | 93 | +1% |
| Capitec | 2 | 2 | 92 | 93 | +1% |
| Standard Bank | 63 | 21 | 81 | 86 | +6% |
| Nedbank | 61 | 25 | 81 | 85 | +5% |
| Absa | 122 | 65 | 77 | 80 | +4% |
| Rand Merchant Bank | 95 | 115 | 78 | 76 | -2% |
| Investec | 128 | 132 | 76 | 75 | -2% |
