The South African retail banking sector is characterised by high barriers to entry. The sector is concentrated, with four of the largest banks – Standard Bank, Absa, First National Bank and Nedbank – accounting for more than 80% of retail deposits.
IN THE next few years, the South African banking sector will see shifts in ownership due to developments at Barclays, Old Mutual and the reconstitution of African Bank. These have been touted as opportunities to bring new players into banking. But what about entrants who want to pursue their own business models as competitors to the incumbents?