P R E S E N T E D B Y

S U M E D H G H A R A T

S W A P N I L B H O S A L E

S W A P N I L M A G A R

T A N M O Y T R I V E D I

T A N V I N A R K H E D E

T I J O T H O M A S

PESTLE Analysisof Banking Sector in South

Africa

Contents

Introduction SWOT Analysis Political Analysis Economical Analysis Social Analysis Technological Analysis Legal Analysis Environmental Analysis References

Introduction

MOTTO : UNITY IN DIVERSITY

GOV: Constitutional Parliamentary Republic.

PRESIDENT : Jacob Zuma DEPUTY PRESIDENT : Kgalema Mahlangu.

SPEAKER OF THE NATIONAL ASSSEMBLY : Max Sisulu

7.8

0.9 10.3

Ethnic Groups Black African

Coloured

Indian or Asian

Others

CAPITAL : Pretoria (Executive) : Bloemfontein ( Judicial ) : Cape Town (Legislative )

LARGEST CITY: Johannesburg

OFFICIAL LANGUAGES : Southern Ndebele Tsonga ,Tswana.

Famous Banks : ABS, FNB, Standard Bank, Nedbank, Capitec, FirstRand, etc.

SWOT Analysis

S

• Combined local currency, RSA banks have a good track record of performance and have shown resilient core earnings

W• Weak GDP

O• Rapid infrastructure development, Internship support for

entrepreneurs

T

• High transport costs, local telephone completion rate is under 30 percent compared to the 70 percent in OECD countries

Political Analysis

The Republic of South Africa is a parliamentary representative

democratic republic.

South Africans also elect provincial legislatures which govern each of the country's

nine provinces.

From 1990s the African National Congress (ANC) has

dominated South Africa's politics.

The judiciary is independent of the executive and the

legislature powers.

Government is three-tiered, with representatives elected at

the national, provincial and local levels.

President is the head of the government.

Economical Analysis

Natural resources : South Africa is one of the world's leading mining and mineral-processing countries.

1) Discovered diamonds and Gold which was biggest discovery of all

2) Estimated share of world platinum production amounted to 77%

Agriculture and food processing :1) Contributes 2.6% of GDP for the nation.2) The food sub-sector contributes 1.4%

to total employment, and 11.5% within the manufacturing sector

Manufacturing : The manufacturing industry contributes little to the economy, provides just 15% of GDP

Continued ……

Currency of RSA is South African RANDAnalysis of GDP and PCI :

2008 2009 2010 2011 2012

GDP 5.5 3.6 -1.5 3.5 2.5

Per Capita income

5,598 5,758 7,266 7,943 7,508

•Macroeconomic balances fall within IMF norms quickly after the democratic elections of 1994• The Reserve Bank after a long period of successive Repo (bank) rate hikes from April 2005 began cutting its key Repo rate lower to 7 percent at end December 2009

Social Analysis

With a growing population of 50 million and 11

official languages, RSA has became an

intensively divertive nation

Majority of black people

South Africa's retail banks

need to adopt a customer-

centric approach to

retain and grow their customer

base.

87.9% of Black residents are Christian and

71.8% of White residents are

Christian.

Technological Analysis

Computerization

Networked PC’s

Currency Counters

Satellite Banking

Security Concerns

Biometrics

World Wide Space

Websites

Electronic Transfer

ATM’s

Continued…….

Other Facilities :

IT

Phone banking

Internet Banking

System Generated Messages

Integrated Applications SOA

Technologies Provider

Electronics Devices

IAfrica

MAGAZET

Dream Oval

GrinTek

Telecommunication

MTN

Neotel

Vodacom

ESKOM

Software

Softline

Sage Group

IDX

Dimension Data

StatSoft

MWEB

Networking

ISP Kenya

USKO

Hutspace

Craft Silcon

Legal Analysis

The Code of Banking Practice (CoBP) recognizes that consumer protection is an essential element of a diverse, dynamic and challenging banking environment. Although it is voluntary, all member banks of The Banking Association South Africa abide by The Code of Banking Practice.

The Code of Banking Practice refers to issues that may be subject to legislation or regulation, which may change and will take preference over The Code.

The Code of Banking Practise

The CoBP applies to the relationships between personal and small business customers and their banks.

Legal Acts

Promotion of Access to

Information Act of 2000

Promotion of Equality and Prevention of

Unfair Discrimination

Act of 2000

Financial Intelligence Centre Act

(FICA) of 2001

Financial Advisory and Intermediary

Services Act (FAIS) of 2002

Financial Services Ombud Schemes

Act of 2004

National Credit Act (2005)

Consumer Protection Act

(2008)