Market share and growth: South African banks


Two articles to read through when covering the concepts of market share and business growth:

1 The first article claims that Capitec has recently overtaken Nedbank as South Africa’s 4th largest bank. In other words, Capitec has grown as a business. The second article, however, raises some points about what we consider as “growth” and how this would affect Nedbank and Capitec’s ranking.

Q: In which ways can we view Capitec as larger than Nedbank? At the same time, what criteria would we use to see Nedbank as remaining in 4th position?

2 According to the first article, FNB has the highest adspend (finance spent on advertising) of all the banks. However, FNB’s market share declined in spite of this. On the other hand, Capitec has the lowest adspend but its market share grew.

Q: Does this mean that advertising is not a sure way to increase market share? Are there other factors that we need to consider here?