DURBAN – The banking sector is poised for a major shake-up in competition this year as three new entrants begin plying their craft against the established institutions which have perennially dominated the market.
Discovery Bank, Bank Zero and Patrice Motsepe’s TymeBank are expected to give the likes of Nedbank, Standard Bank, Absa Bank, FirstRand and Capitec a run for their money after they were granted banking licences last year.
Jordan Weir, a trader at Citadel, said that with the emergence of the new banks into the sector, the consumer could expect to see a few more innovative products and services being added to the current suite of banking solutions and more competitive pricing models might be implemented across both old and new banking options.
“We can also expect to see further fine-tuning and innovation in terms of digitalisation and securitisation within the South African banking landscape to create a safer, more efficient and user-friendly banking experience.”
He said that as Discovery Bank was further aligning clients’ health with banking benefits, South Africans could also expect to see banks in the near future going places they had never ventured before. Weir said this was good for competition in the industry.