Abridged SM Study On Retail Banking

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
South Africa's best and worse retail banks and the issues driving opinions
for the 12 months between 1 July 2014 - 30 June 2015
31 July 2015
South Africa's first social business intelligence consultancy
Content
Introduction
Key Findings
Data sample
SA's banks social media share of voice
SA's best and worst banks
Issues driving opinions about SA's banks
Opinions of banks on key issues
Behavioural analytics
Gender analysis
Appendix
Introduction
Social media provides a significant opportunity for companies to better understand the markets they serve. However,
beyond sales and marketing, harvesting social data to provide actionable business insights is dicult. The main
challenge is discerning between industry-created and market-created content. Another main challenge in SA, is opinion
mining. South Africans can literally express something in a thousand dierent ways, which requires the best natural
language processing technologies and hundred of hours to rate language terms. In this analysis, for example, we
excluded more than 80% of social data relating to SA's banks, which was created by the banks themselves, their
agencies and partners; is the result of spamdexing; content syndication; or contains data that cannot be used for
opinion-mining. We also reiterated thousands of sentiment terms and phrases.
However, social media insights provide authentic views and opinions with a high degree of specificity and can be
dissected to provide more powerful insights than traditional market surveys. Furthermore social media insights can be
harvested daily, even hourly, which enables companies to an opportunity to build better relationships with customers by
quickly and quantitatively assessing problems, operational issues, risks and opportunities.
Ubiquity - SA's first social business intelligence consultancy - conducted this analysis to demonstrate that social media
data can provide actionable business insights.
Ubiquity embarked on a social business intelligence project to answer two questions: (1) What are market opinions
around South Africa's retail banks, and (2) What are the issues driving those opinions? We chose the retail banking
sector, which is considered as the most challenging retail sector to analyse.
The banks analysed in this study are Absa, Capitec, FNB, Nedbank and Standard Bank. This analysis covers 90% of
retail banking issues across social media, which were statistically identified and categorised into four main issues:
* customer service
* banking fees
* credit - lending practices, products, service, home loans, debt, debt collection and credit application
* savings - products, services, advise, financial education and the promotion of savings
Business banking and vehicle (and asset) finance are excluded from this analysis.
Key findings
*
*
Capitec is SA's best bank and the only bank that received a net positive opinion on social media.
Nedbank is SA's worst bank.
Issues driving opinions about banks

*
*
*
Credit is the top retail banking issue on social media, followed by customer service, costs and savings.
Customer service is the industry's biggest pain point. All of SA's banks - with the exception of Capitec - are failing
customers.
Opinions are only slightly more negative than positive about banking fees after eorts by banks to reduce costs, while
the market had a net overall positive opinion about banks' eorts to promote savings.
Behavioural analytics
*
*
*
*
More FNB customers engage on social media than any other bank.
FNB receives more negative recommendations than any other other bank, closely followed by Standard Bank and
Absa.
More prospective customers are looking into FNB than any other bank.
Absa and FNB have the highest proportion of customers indicating their intention to leave.
Gender
*
There are slight gender biases toward Absa and and Nedbank, however men and women definitely express dierent
priorities around banking issues - costs, credit, customer service and savings.
Social Media Share of Voice

FNB has the largest share of voice on social media. This reflects a winning strategy to promote twoway symmetric communications with stakeholders which will enable it to respond and adapt quicker
than its competitors in the long run.
20,0%
10,4%
19,5%
14,2%
35,8%
- Standard
- Nedbank
- FNB
- Capitec
- Absa
1 July 2014 - 30 June 2015

SA's best and worse banks

Capitec is SA's best bank and the only bank with a net positive opinion score according to social data.
Nedbank is the worst bank.
15
Net sentiment scores
7,5
8,3
0
-7,5
-14,6
-16,3
-10,5
-23,1
-15
-22,5
-30
1 July 2014 - 30 June 2015

- Standard
- Nedbank
- FNB
- Capitec
- Absa

*
*
*
Capitec is SA's best bank according to consumer opinions on social media and the only SA bank to receive
an overall net positive rating.
While Nedbank received the highest negative rating, Standard Bank received the lowest positive rating.
Nedbank is SA's worst bank according to opinions on social media, having received the lowest overall net
rating.
Negative
Positive
Ambivalent
60
4,3
45
3,3
3,0
14,9
14,4
14,1
37,5
31,2
28,7
25,8
18,0
0
FNB
3,7
15,3
26,3
30
15
3,9
Capitec
Standard Bank
Nedbank
Absa
Each sentiment score is represented as a proportion of total comments
Neutral comments are excluded in this chart
SA best and worst banks (per quarter)

Capitec was SA's best bank during each quarter for the year ending 30 June 2015, and is growing its lead,
while Nedbank crashed in the last quarter due to poor customer service.
- Absa
- Capitec
- FNB
- Nedbank
- Standard
Issues driving opinions about banks
Credit - is the No1 retail banking issue on social media

10%
Banking fees and costs
Credit-related
Customer service
Savings
22%
26%
42%
Credit is the main bank-related issue on social media. Customer service has consistently deteriorated
over the past three quarters and has overtaken banking fees and costs as the second major issue.
Q3 2014
Q4 2014
11%
11%
28%
22%
39%
24%
18%
Q1 2015
13%
8% 16%
26%
22%
47%
Q2 2015
33%
39%
43%
Credit
Negative
Positive
Ambivalent
50
38
6,2
2,0
3,2
3,3
3,0
25
15,9
21,6
18,4
11,6
14,9
15,4
16,7
18,8
18,0
Q4 2014
Q1 2015
Q2 2015
12-month average
13
18,5
0
Q3 2014
Credit - incorporates all credit issues relating to (except vehicle finance and business finance) like lending
criteria and practices, products, service, home loans, debt, debt collection and credit application and
disputes.
Customer service
Negative
Positive
Ambivalent
90
4,6
4,0
10,7
68
5,7
18,2
6,4
5,6
15,6
15,2
64,7
63,2
Q2 2015
12-month average
16,1
45
68,2
49,4
23
*
*
*
Q3 2014
Q4 2014
59,3
Q1 2015
Customer service includes all issues relating to service including complaints, customer experiences at bank
branches, online and call centres.
Customer service is showing steady deterioration since Q3 2014.
The market is extremely opinionated about this issue.
Banking fees
Negative
Positive
Ambivalent
50
5,2
4,9
4,6
4,6
3,5
38
18,4
14,8
16,8
17,4
18,9
25
13
20,4
Q3 2014
24,9
Q4 2014
19,9
Q1 2015
25,0
Q2 2015
22,5
12-month average
Banking fees was a hot-button issue, but overall more than half of all social data is neutral, while opinions
are divided. On the one hand, banks have developed more compelling value propositions, partly in response
to Capitec. However, customers complain regularly about transactional banking fees relating to issues like
reversing unauthorised debit order charges.
Savings
Negative
Positive
Ambivalent
40
3,1
1,0
2,7
4,0
30
1,0
20
14,5
28,1
14,3
10
18,5
7,5
*
*
21,4
23,5
Q3 2014
11,4
10,3
Q4 2014
Q1 2015
12,8
Q2 2015
12-month average
Savings incorporates products, services, advise, financial education, promotion of financial savings and
general eorts by banks to save customers money.
Banks are aggressively promoting savings spurred by tax incentives on short-term savings products, which
appears to resonate with banking customers.
Opinions of banks on key issues
SA's best and worst banks: Credit

Sentiment is turning negative in 2015
- Absa
- Capitec
- FNB
- Nedbank
- Standard
*
*
Opinions are more positive towards Absa and Capitec. Absa is the only bank to score a net
positive opinion on credit-related issues.
However, opinions are steadily turning more negative on the remaining three banks. (Also see
next graph)
Opinions about credit

Negative
Positive
Ambivalent
50
14 16
25
17
20
Q3 2014
Q4 2014
13
Q1 2015
4 12 13
10
14
15 14
5
15 15 14
17
14
12
Absa
Nedbank
11
3
3
Standard Bank
19 19
Capitec
Standard Bank
12
Nedbank
FNB
Capitec
Absa
Standard Bank
19
FNB
22
16 16 14
13
Nedbank
FNB
Capitec
Absa
19 18 17
Absa
25
21
17
17
17 18
21 21 20
19
17 14 19 19
Q2 2015
12-month
average
Standard Bank
23 22
24
Nedbank
19
20 6
16
FNB
12
Capitec
11
Absa
33
Standard Bank
Nedbank
FNB
Capitec
42
SA's best and worst banks: Customer Service

The banking industry's key pain point, but Capitec is in a league of its own
- Absa
- Capitec
- FNB
- Nedbank
- Standard
*
*
*
Opinions are more negative about customer service than any other banking issue.
Negative opinions are consistent toward FNB, while opinions deteriorated significantly towards Nedbank in
Q2 2015.
Customer service is the banking industry's biggest pain point as banks are failing customers. (Also see next
graph)
Opinions about Customer service

Negative
Positive
Ambivalent
100
7
13
6
6
13
14
10
20
62
61
51
17
24
Q3 2014
63
51
4 12 9
13
7
14
43
72
76
60
60
70 73
64
59
31
28
22
Q4 2014
Q1 2015
Q2 2015
12-month
average
Standard Bank
Nedbank
FNB
Capitec
Absa
Absa
Standard Bank
FNB
Capitec
Nedbank
FNB
Capitec
Absa
11
Standard Bank
Nedbank
FNB
Capitec
Absa
13
70
14
35
17
64
16
Absa
48
23
Standard Bank
33
13
3 17
75
49
6
71
4 13 8
17
12
3
50
17
Standard Bank
33
Nedbank
5
6
FNB
67
Capitec
5
8
Nedbank
83
SA's best and worst banks: Banking fees and costs
Fees and costs - key dierentiators for Capitec
- Absa
- Capitec
- FNB
- Nedbank
- Standard
Opinions are most negative towards Nedbank and FNB around banking fees and costs, while Capitec leads
the way. (Also see next graph)
Opinions about banking fees and costs

Negative
Positive
Ambivalent
70
58
14
16
25 16
16 4
13
Q1 2015
Q2 2015
28
20
Nedbank
24
FNB
Capitec
21 19
Absa
Standard Bank
Absa
Standard Bank
27
14
12
Q4 2014
35
Nedbank
14
27
24
21 20 23 22
Capitec
25
Nedbank
19
23
FNB
16
Q3 2014
11
14 2
27
35 32
26
Nedbank
20
FNB
25
Capitec
18
Absa
12
14
4
15
16
16
20
Capitec
23
FNB
18
21
14
Absa
15
4
6
Nedbank
15
FNB
20
Capitec
35
Absa
29
23
Standard Bank
12
26
12
Standard Bank
47
13
Standard Bank
12-month
average
SA's best and worse banks: Savings
FNB and Standard Bank losing ground
- Absa
- Capitec
- FNB
- Nedbank
- Standard
*
*
Absa, Nedbank and Capitec all score a net positive rating on savings as an issue.
Opinions are turning more negative, while FNB and Standard Bank lag. (Also see next
graph)
Market opinions: Savings

Negative
Positive
Ambivalent
60
6
22
2
Q3 2014
Q4 2014
39
18
4
22 11
3
1
13
29 4
29
20
15
13
17
15 14
13
12
10
Q2 2015
Nedbank
21
Standard Bank
15
Nedbank
Standard Bank
Q1 2015
21
FNB
15 17
Absa
7
Nedbank
14
FNB
Absa
17
Capitec
10
8
FNB
13
Capitec
12
18
Absa
Nedbank
Capitec
Absa
5
FNB
11
17
Standard Bank
15
33 14
Absa
12
10
21
19
31
20
18
19
Standard Bank
31
39
Nedbank
30
12-month
average
Standard Bank
Capitec
40
FNB
Capitec
50
Behavioural analytics:
Analysis of consumer categories by behavioral attributes
Behavioural analytics segments

Share of voice by behavioural
segments
6,9%1,9%
1,2%
Behavioural analytics identifies and segments people

(where possible) into the consumer categories by
thorough behavioral attributes shared on social
platforms:
There are four behavioral segments:
Users - (or customers)
Recommenders - not necessarily customers and can
include journalists, bloggers or other stakeholders like
the banking ombudsman.
90,0%
Prospective customers - people who indicate that they

are looking around and share their attitudes
Potential churners - customers who indicate their
intention to leave their current bank.
Users (customers)
Recommenders
Prospective users
Potential churners
Behavioural analytics: summary
Key Findings
Kaveer
A
Kaveer
A
A
Customers
More FNB customers engage on
social media than any other bank.
A
A
A
A
Recommenders
FNB receives more negative
recommendations than any other
other bank, closely followed by
Standard Bank and Absa.
Prospective customers
More prospective customers are
looking into FNB than any other
bank
Potential Churners
Absa and FNB have the highest
proportion of customers indicating
their intention to leave.
Behavioural analytics - Absa
Key Findings
Customers
Credit is the dominant issue
Recommenders
Absa only received negative
recommendation, all relating to
credit.
Prospective customers are looking at
all four major aspects banking.
Potential Churners
Customers are indicating they are
likely to leave because of costs,
credit and issues dealing to savings.
Behavioural analytics - Capitec
Key Findings
Customers
Credit is the dominant issue
Potential customers are focusing on
access to credit, and costs and
customer service, to a lesser extent.
Potential Churners
likely to leave because of issues
relating to credit.
Behavioural analytics - FNB
Key Findings
Customers
Credit is the dominant issue filled by
customer service.
FNB receives more negative
recommendations than any other
other bank, all relating to credit.
mainly on access to credit, and
costs.
Potential Churners
Customers are likely to leave
because of issues relating to credit
and costs.
Behavioural analytics - Nedbank

Key Findings
Customers
Credit is the dominant issue followed
by customer service.
Potential customers are focusing
equally on credit, costs, customer
service' which is indicative of a
brand push, but sentiment is largely
negative.
Potential Churners
relating to credit.
Behavioural analytics - Standard Bank
Key Findings
Customers
Credit is the dominant issue.
Recommenders
All recommendations are negative
and relate to credit.
mainly on access to credit, and
costs, however sentiment is split.
Potential Churners
relating to credit and issues related
to savings.
Gender analysis
Gender biases towards brand
Gender priorities toward issues
Gender analysis - Absa
There is a positive bias among females and a negative gender bias toward Absa . Females engage
proportionately more regarding credit and customer service, while males engage proportionately more
on credit.
Gender analysis - Capitec
There is no gender bias toward Capitec. Males engage proportionately more regarding costs, while
females engage more regarding credit.
Gender analysis - FNB
There is no gender bias toward FNB. Females engage proportionately less regarding credit and more
regarding costs, when compared with men.
Gender analysis - Nedbank
There is a negative gender (female) bias toward Nedbank. Females engage proportionately less
regarding costs and more regarding customer service and savings, when compared with men.
Gender analysis - Standard Bank
There is no significant gender bias toward Standard Bank, however females engage proportionately less
regarding costs and more regarding customer service, when compared with men.
Conclusion
Traditionally, there's a widely-held belief that consumers will more readily complain and express
negative opinions towards companies and brand, as oppose to complimenting and expressing positive
opinions. This is not necessarily true in a digital age, as people will share thoughts, opinions and
experience, whether positive or negative, especially if incentivised to do so.
Opinions on social media about Capitec and savings were more positive than negative, and while one
would expect South Africans to express an overwhelming negative opinion towards banking fees and
costs, this is not the case. South Africans have responded positively to eorts by banks to reduce
costs (or provide better value) and promote savings.
This type of analysis provides customers with comparative data to promote more informed decisionmaking and assist banks to identify and address problem areas.
Analysis by Ubiquity Consulting

A303 Pardis Bay, Big Bay, Cape Town
Tel: +27215549891
+27923723212
Kaveer@ubiquity.co.za
About Ubiquity Consulting

Ubiquity was founded in 2008 and has evolved from a consultancy specialising in
reputation and stakeholder governance to become Africas first social business
intelligence consultancy. We harvest social media data through auditable and
transparent analytics to provide actionable business insights.

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2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

for the 12 months between 1 July 2014 - 30 June 2015

South Africa's first social business intelligence consultancy

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

Nedbank is SA's worst bank.

Issues driving opinions about banks

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

Social Media Share of Voice

1 July 2014 - 30 June 2015

SA's best and worse banks

Net sentiment scores

1 July 2014 - 30 June 2015

SA's best and worst banks

Each sentiment score is represented as a proportion of total comments

Neutral comments are excluded in this chart

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

SA best and worst banks (per quarter)

Net sentiment scores

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

Issues driving opinions about banks

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

Credit - is the No1 retail banking issue on social media

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

Opinions of banks on key issues

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

SA's best and worst banks: Credit

Net sentiment scores

Opinions about credit

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

SA's best and worst banks: Customer Service

Net sentiment scores

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

Opinions about Customer service

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

SA's best and worst banks: Banking fees and costs

Fees and costs - key dierentiators for Capitec

Net sentiment scores

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

Opinions about banking fees and costs

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

SA's best and worse banks: Savings

FNB and Standard Bank losing ground

Net sentiment scores

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

Market opinions: Savings

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

Analysis of consumer categories by behavioral attributes

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

Behavioural analytics segments

Behavioural analytics identifies and segments people

Prospective customers - people who indicate that they

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

Behavioural analytics: summary

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

Behavioural analytics - Absa

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking

Behavioural analytics - Capitec

2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking