Based on public consumer sentiment, Discovery Bank is South Africa’s favourite bank in 2024. This according to findings from the latest DataEQ SA Banking Sentiment Index which analysed over 3.3 million social media posts to gauge public perception towards SA’s biggest retail banks.
South Africa’s banking industry leads the way
South Africa’s banking industry continues to lead as the most positively spoken-about industry in the country. Despite a four-percentage-point decline in Net Sentiment from 2023, the industry maintained an overall positive sentiment score of 20%. This strong performance saw banking outperform the retail, insurance and telecoms industries according to consumer Net Sentiment.
The report findings also showcased South Africa’s banking industry as an international leader. Among the seven regions analysed by DataEQ, South Africa ranked first in banking Net Sentiment, followed by Botswana, Kenya, Ghana, Saudi Arabia, the United Arab Emirates, and the United Kingdom.
Discovery top in public operational & reputational rankings
Discovery Bank achieved the highest Net Sentiment (NS) scores in overall, operational and reputational categories, cementing its leadership position. Its operational success was underpinned by positive customer feedback, including praise for its customer service, Vitality rewards programme, secure digital platforms, and card services. Discovery was followed by FNB and Absa in the operational rankings, with both banks earning praise for innovative features and excellent staff service.
In reputational rankings, Discovery Bank’s community initiatives, award wins, and product innovation solidified its position at the top. Absa and TymeBank followed closely, supported by their strategic partnerships and impactful educational campaigns which resonated with consumers.
Strategic campaigns boost sentiment but mask operational failings
Strategic campaigns proved effective in boosting customer sentiment across the industry, with hashtags like Discovery’s #DiscoveryBestBank, FNB’s #LoveFNB, Absa’s #WeDoMoreWednesdays, Standard Bank’s #SBLove, and African Bank’s #AudacityToBelieve fostering positive engagement. However, such campaigns somewhat masked underlying operational grievances.
Sarah Lamb, Banking Lead at DataEQ, commented: “Campaigns have been incredibly effective in generating positive sentiment, but they are not a substitute for addressing operational issues. While they create a temporary uplift, customer frustrations—particularly regarding service quality—resurface when the promotional spotlight dims.”
Customer service challenges remain
Customer service remains a significant pain point, with over 60% of related conversations reflecting dissatisfaction. Common complaints included long response times, unresponsive service channels, and staff competency issues, particularly in call centres.
Downtime and fraud concerns drive industry risk
Governance issues also emerged as a critical area of concern, with over a quarter of industry priority conversations containing a risk theme. Of this, 54% were linked to perceived downtime issues, including app outages and delayed transactions, significantly impacting customer trust. Fraud conversations were also a major driver of industry risk, with 14% of all risk-related discussions referencing fraud complaints, including unauthorised transactions and delays in query resolution, highlighting the industry’s struggle to address these risks effectively. The lack of compliance with Treating Customers Fairly (TCF) principles, particularly regarding performance and service issues, further underscored governance vulnerabilities across the industry.
Lamb concluded: “The governance challenges revealed in this year’s report present a significant risk to the market. Operational downtime and unresolved fraud issues not only undermine customer trust but also expose banks to potential regulatory repercussions. Addressing these systemic issues is essential for ensuring long-term stability and maintaining the industry’s hard-earned positive reputation.”