Brand Finance published its annual Banking 500 Report, which looks at most valuable and strongest banking brands in the world.
FNB and Capitec were named the first and second strongest brands in the world by Brand Finance, respectively. However, Standard Bank is the most valuable banking brand in South Africa, according to data supplied to BusinessTech from Brand Finance.
“Brand value refers to the present value of earnings specifically related to brand reputation. Organisations own and control these earnings by owning trademark rights,” says Brand Finance. Standard Bank’s brand value grew by over 10% in the last year to reach over $1.74 billion US dollars. However, Standard Bank’s rank of 145 in terms of brand value remains unchanged from the previous year.
Despite, FNB being named the strongest banking brand on earth according to the Brand Finance’s Report, its overall brand value decreased by 3% to $1.54 billion. Moreover, its brand value ranking dropped by nine places to 155.
Absa (185) and Nedbank (204) also saw their global rankings drop, even though the brand value of both banks increased. Investec’s 2023 brand value remained unchanged from 2022, but it dropped to 209 in the rankings.
Capitec and Rand Merchant Bank also saw their brand values drop, which saw them drop to 262 and 398 in the global rankings, respectively. Ultimately, no South African bank saw its brand value ranking increase from the previous year.
Although Discovery and Tymebank were not included in the brand value rankings, Brand Finance said that both brands are disrupting the banking industry.
The value of digital banks – also known as ‘neobanks’ – has risen by over 103% over the last year – increasing from $795.6 million in 2022 to $1,611.9 million in 2023.
Neobanks generally score highly in terms of sustainability and innovation – two key drivers for customer choice.
Chinese bank ICBC remains the most valuable banking brand in the world, despite its value falling 7% to $69.5 billion.
Chinese banks swept the podium, with the China Construction Bank (brand value down 4% to $62.7 billion) and the Agricultural Bank of China (brand value down 7% to $57.7 billion) taking second and third spot, respectively.
The top ten most Valuable Banking Brands in the world contain only American and Chinese banks. American Silicon Valley Bank (108) is the fastest-growing banking brand in terms of brand value, doubling in value to almost $2.8 billion.