South Africa’s top banks are intensifying their digital arms race, with client acquisition and transaction volumes continuing to increase, driven by mobile-first platforms.
This is according to PwC’s Major Banks Analysis, which provides an overview of how local banks are leveraging technology to capture market growth and redefine client experiences.
According to the report, despite a volatile global and domestic backdrop, banks have shown resilience, while pushing ahead with digital innovation as a key growth lever.
Combined headline earnings for the major banks− including Absa, Capitec, FirstRand, Investec, Nedbank and Standard Bank − rose 9.4% to R152.5 billion in 2025, reflecting disciplined cost control, improved credit quality and robust non-interest revenue, it notes.
PwC identifies digital transformation as a primary driver of competitive advantage contributing to the financial sector’s balance sheets remaining strong in 2025.
Customer deposits climbed to a combined R8.3 trillion, and gross loans and advances reached R6.8 trillion, highlighting continued appetite for credit among households and businesses as the South African economy recovered.
“South Africa’s major banks continue to compete intensely on digital growth, with client acquisition and transaction volumes increasing through mobile-first platforms,” notes Rivaan Roopnarain, PwC South Africa Banking and Capital Markets Partner.
“Investments in cloud-based core systems, hyperscaler platforms and emerging technologies such as generative and agentic AI are helping banks accelerate modernisation, enhance operational efficiency and deliver more personalised client experiences.”
Scaling AI responsibly
The adoption of artificial intelligence (AI) is increasingly becoming central to business strategy in the financial sector.
Banks are exploring autonomous agents for customer service, AI-enhanced credit decisions, fraud detection and real-time analytics, notes the report.
Yusuf Bismilla, PwC South Africa Digital Trust Partner, says: “AI is viewed as a strategic business imperative − boosting productivity, enhancing decision-making, and improving client and employee experiences when deployed thoughtfully at scale.”
Client centricity has emerged as a defining competitive differentiator. With banking products across retail, business and corporate sectors becoming commoditised, banks are redesigning operating models around customer segments, notes the report.
“This enables concentrated investment in talent, technology and product innovation where demand is strongest, while maintaining scale efficiencies in back-office operations. The goal is to blend digital convenience with human engagement, capturing a full spectrum of client activity across financial services and lifestyle ecosystems.”
Pan-African diversification is also supporting growth. Banks with regional footprints are tapping into emerging consumer markets and infrastructure investment opportunities across Sub-Saharan Africa, partnering with fintech firms and mobile money operators to increase their market share in domestic markets, the report notes.
Simultaneously, cost optimisation, the streamlining of operations and AI-enabled productivity tools continue to underpin sustainable earnings growth in the banking sector’s competitive environment.
PwC highlights that while SA’s major banks are well-capitalised and resilient, the sector faces ongoing challenges: scaling AI responsibly, differentiating client relationships, competing with agile fintech entrants, and navigating increasing regulatory complexity, including post-crisis Basel reforms (a global regulatory framework) and evolving consumer protection requirements.
Costa Natsas, PwC Africa financial services leader, sums it up: “The 2025 results reveal an industry that has navigated macro headwinds and delivered record earnings in several cases. The rise of AI, embedded finance and sustainable finance are redefining competitive advantage, and the banks that act boldly in this cycle are likely to shape the next era of South African banking.”
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