abridged sm study on retail banking
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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
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
South Africa's first social business intelligence consultancy
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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
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
Content
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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.
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
Introduction
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SA's best and worst banks
* 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.
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
Key findings
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Social Media Share of Voice
FNB has the largest share of voice on social media. This reflects a winning strategy to promote two-way symmetric communications with stakeholders which will enable it to respond and adapt quicker than its competitors in the long run.
20,0%
10,4%
35,8%
14,2%
19,5% - Standard- Nedbank - FNB- Capitec- Absa
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
1 July 2014 - 30 June 2015
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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.
-30
-22,5
-15
-7,5
0
7,5
15
-10,5
8,3
-16,3-23,1
-14,6
- Standard- Nedbank - FNB- Capitec- Absa
Net s
entim
ent s
core
s
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
1 July 2014 - 30 June 2015
-
015
30
45
60
FNB Capitec Standard Bank Nedbank Absa
3,7
4,3
3,93,03,3
15,3
14,4
14,126,3
14,9
25,837,5
28,718,0
31,2
Negative Positive Ambivalent
SA's best and worst banks* 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.
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
Each sentiment score is represented as a proportion of total comments
Neutral comments are excluded in this chart
-
- Absa- Capitec- FNB- Nedbank- Standard
Net s
entim
ent s
core
s
SA best and worst banks (per quarter)
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
* 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.
-
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
Issues driving opinions about banks
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Credit - is the No1 retail banking issue on social media
10%
26%
42%
22%Banking fees and costsCredit-relatedCustomer serviceSavings
11%
22%
39%
28%11%
18%
47%
24% 13%
22%
39%
26%8%
33%
43%
16%
Q3 2014 Q4 2014 Q1 2015 Q2 2015
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.
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
-
013
25
38
50
Q3 2014 Q4 2014 Q1 2015 Q2 2015 12-month average
3,33,0
2,06,2
3,2
14,911,618,421,615,9
18,018,816,715,418,5
Negative Positive Ambivalent
Credit
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
* 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.
-
023
45
68
90
Q3 2014 Q4 2014 Q1 2015 Q2 2015 12-month average
5,66,44,0
5,7
4,6
15,215,618,2
16,1
10,7
63,264,759,349,4
68,2
Negative Positive Ambivalent
Customer service
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
* 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.
-
013
25
38
50
Q3 2014 Q4 2014 Q1 2015 Q2 2015 12-month average
4,64,63,55,24,9
17,416,8
18,914,8
18,4
22,525,019,924,9
20,4
Negative Positive Ambivalent
Banking fees
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
* 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.
-
010
20
30
40
Q3 2014 Q4 2014 Q1 2015 Q2 2015 12-month average
2,74,01,0
1,0
3,1
21,414,5
23,514,3
28,1
12,818,5
10,311,47,5
Negative Positive Ambivalent
Savings
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
* 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.
-
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
Opinions of banks on key issues
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SA's best and worst banks: Credit
- Absa- Capitec- FNB- Nedbank- StandardNet
sent
imen
t sco
res
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
* 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)
Sentiment is turning negative in 2015
-
08
17
25
33
42
50Ab
sa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
Absa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
Absa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
Absa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
Absa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
733
53
343
42
111
6
311
3635
3
246
3
141515
141710
1312
1213
211817
17
20
20
16242223
12
171614
19
1919191417
202121141514
191911
1912
22141616
25
13171819
Negative Positive Ambivalent
Opinions about credit
Q3 2014 Q1 2015 Q2 2015 12-month average
Q4 2014
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
-
SA's best and worst banks: Customer Service
- Absa- Capitec- FNB- Nedbank- StandardNet
sent
imen
t sco
res
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
* 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)
The banking industry's key pain point, but Capitec is in a league of its own
-
017
33
50
67
83
100Ab
sa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
Absa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
Absa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
Absa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
Absa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
765
468
66461
10
2
6
6
3
3
6
6
67
2
535
14
912
43
1313
813
49
1717
12
13
14
14
17
16
20
23
613
17
6
33
8
597370
31
64607672
28
606351
70
11
64
3522
51
24
6162
13
75
48
71
Negative Positive Ambivalent
Opinions about Customer service
Q3 2014 Q1 2015 Q2 2015 12-month average
Q4 2014
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
-
SA's best and worst banks: Banking fees and costs
- Absa- Capitec- FNB- Nedbank- StandardNet
sent
imen
t sco
res
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
* Opinions are most negative towards Nedbank and FNB around banking fees and costs, while Capitec leads the way. (Also see next graph)
Fees and costs - key dierentiators for Capitec
-
012
23
35
47
58
70Ab
sa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
Absa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
Absa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
Absa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
Absa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
4
8
44
82
6
4764
44
6
139
4
91
12
3
12
13
161625
1614
14
15
2716
2316
212014
2326
14
1118
15
15
29
20
2028241921
2735
27
1424
1222232021
323525
14191626
202518
Negative Positive Ambivalent
Opinions about banking fees and costs
Q3 2014 Q1 2015 Q2 2015 12-month average
Q4 2014
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
-
SA's best and worse banks: Savings
- Absa- Capitec- FNB- Nedbank- Standard
Net s
entim
ent s
core
s
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
* 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)
FNB and Standard Bank losing ground
-
010
20
30
40
50
60Ab
sa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
Absa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
Absa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
Absa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
Absa
Capi
tec
FNB
Nedb
ank
Stan
dard
Ban
k
43
4
1
84
3
2
6
2
4
43
13
29
2029
17
1315
112218
4
392139
1714
22
12
13
1819
1931
31
151415131210
2115
21171587
149710
33
818
1217
511
3
Negative Positive Ambivalent
Market opinions: Savings
Q3 2014 Q1 2015 Q2 2015 12-month average
Q4 2014
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
-
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
Behavioural analytics:
Analysis of consumer categories by behavioral attributes
-
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.
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.
1,9%6,9%1,2%
90,0%
Users (customers)RecommendersProspective usersPotential churners
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
Share of voice by behavioural segments
Behavioural analytics segments
-
Kaveer
A
Kaveer
A AA
A
A A
A
AA
A
A
A
A
AA
Key Findings
Customers More FNB customers engage on social media than any other bank.
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.
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
Behavioural analytics: summary
-
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
Key Findings
Customers Credit is the dominant issue
Recommenders Absa only received negative recommendation, all relating to credit.
Prospective customers 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 - Absa
-
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
Key Findings
Customers Credit is the dominant issue
Prospective customers Potential customers are focusing on access to credit, and costs and customer service, to a lesser extent.
Potential ChurnersCustomers are indicating they are likely to leave because of issues relating to credit.
Behavioural analytics - Capitec
-
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
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.
Prospective customers Potential customers are focusing on mainly on access to credit, and costs.
Potential ChurnersCustomers are likely to leave because of issues relating to credit and costs.
Behavioural analytics - FNB
-
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
Key Findings
Customers Credit is the dominant issue followed by customer service.
Prospective customers Potential customers are focusing equally on credit, costs, customer service' which is indicative of a brand push, but sentiment is largely negative.
Potential ChurnersCustomers are indicating they are likely to leave because of issues relating to credit.
Behavioural analytics - Nedbank
-
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
Key Findings
Customers Credit is the dominant issue. RecommendersAll recommendations are negative and relate to credit.
Prospective customers Potential customers are focusing on mainly on access to credit, and costs, however sentiment is split.
Potential ChurnersCustomers are indicating they are likely to leave because of issues relating to credit and issues related to savings.
Behavioural analytics - Standard Bank
-
Gender analysis
Gender biases towards brand
Gender priorities toward issues
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
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2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
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 - Absa
-
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
There is no gender bias toward Capitec. Males engage proportionately more regarding costs, while females engage more regarding credit.
Gender analysis - Capitec
-
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
There is no gender bias toward FNB. Females engage proportionately less regarding credit and more regarding costs, when compared with men.
Gender analysis - FNB
-
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
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 - Nedbank
-
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
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.
Gender analysis - Standard Bank
-
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
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 decision-making and assist banks to identify and address problem areas.
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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.
Analysis by Ubiquity Consulting
A303 Pardis Bay, Big Bay, Cape TownTel: +27215549891
+27923723212Kaveer@ubiquity.co.za
2014/2015 Ubiquity Social Intelligence Report: SA Retail Banking
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