Banking Sentiment Index shows loyalty, rewards big winners with bank customers
DataEQ’s seventh annual South African Banking Sentiment Index was released on Tuesday, and found that the local banking sector was able to move into a net positive territory for the first time ever.
The index is compiled after DataEQ tracked over four million social media posts about African Bank, Absa, Capitec, Discovery Bank, FNB, Nedbank, Standard Bank, and TymeBank from September 1, 2021 to August 31, 2022.
First National Bank and Absa, according to the index, topped the rankings.
The banking industry’s net sentiment score shot up by almost 17 percentage points, from -7.5% in 2021 to (positive) 9.4% in 2022.
The data revealed that the banking sector in the country was able to climb to first place in the cross-industry comparison, suggesting that South Africans had a generally better experience with their banks, when compared to local retailers, insurers and telcos.
Praise for loyalty programmes
The data showed that banking rewards, loyalty programmes and investment products were the most spoken about products across the sector.
Consumers praised banks for providing methods in which they could not only save money, but get a potential return.
The idea that banks were giving back to customers during tough economic times, where the basic cost of living is on the rise, was well received.
All banks but Discovery benefit from loyalty and rewards programmes
When looking at the contribution that rewards and loyalty programme-related conversation had on the banks’ sentiment, Discovery Bank was the only bank with a negative Net Sentiment score.
The report further stated, “Another area that stood out positively across the sector was that of rewards and loyalty programmes. Likely linked to the rising price sensitivity of consumers, there was a definite drive towards saving where possible. The fact that consumers could not only save through these programmes, but also get a potential return was therefore very well received.
“One thing is for certain, South African banks are no longer approaching social media in a reactive manner. This year saw significant investment into proactive consumer education strategies and campaigns to better support the customer’s experience, negate any harmful reputational impact and boost overall brand perceptions,” the report said.
BUSINESS REPORT