COMPETITOR BRAND ACTIVITY
The banking space has been extremely active with the financial pressures faced by consumers now being felt by the banking sector, African Bank reported an interim loss and many of the major banks were required to increase impairment charges as they prepare for potential bad debts. Capitec and African Bank have adjusted their risk appetite by imposing stricter lending criteria whilst Capitec has additionally started to reduce credit limits and discontinue short-term credit facility access.
FNB aired new TVCs featuring Siya and Rachel Kolisi chatting about everything from the importance of saving to how to use the FNB app. The authenticity of the couple creates a connection with the views and leverages the Kolisi’s credibility to position the brand as a trusted partner to help families build financial fitness. Naked Insurance looked to position its service strongly by launching a new funny tongue-in-cheek campaign, #StopHoldMusic, promoting its online insurance without a single phone call. The campaign empathises with the SA consumer who is frustrated with companies not keeping up with their digital lifestyles that prioritises the convenience of self-service apps and online platforms.
COMPETITOR PRODUCT ACTIVITY
There were several new products launched including a new free rewards programme from Momentum that provides members up to 35% discount on their monthly life insurance premiums for performing health checks, to aid consumers with the rising cost of living. 1Life launched its 1Life Wills and Estate Plan that allows brokers to preserve and transfer, their clients’ generational wealth. 1Life is constantly trying to create a new ‘story’ around generational wealth being for ordinary families, as opposed to the traditional view of it being exclusively for HNWIs.
FNB and Santam launched small business specific products over the period, to cater the growing number of small businesses owners and side hustlers. FNB announced the launching a Solopreneur’s Bundle account designed for customers who manage both personal and business affairs through their personal bank account with no additional monthly account fees. Santam’s micro township business insurance starting from R75pm, to address the challenges faced by township businesses, including limited access to finance, skills scarcity and crime.
COMPETITOR INDUSTRY ACTIVITY
Wage strikes remain prominent across various sectors with Eskom workers being the latest to set forth their demands. Unions have expressed that the cost of living and indebtedness among workers are making it difficult for the workers to survive and referring to the government’s macroeconomic policies and capitalism as causes for the plight of workers. The workers demanded a 12% wage increase but settled on 7%. Concerns have been raised about the threat to job opportunities with Transnet’s privatisation plans and halting of mining operations in Somkhele coal mine in KZN.
The state-owned Post Office has been placed under provisional liquidation, however, the government has hope that SAPO can be transformed into a profitable digital service platform. Takatso Aviation was approved to acquire 51% of SAA from the SA government, we are still to see the impact this has on the operations and the trade unions within SAA. Lastly, the South African government is looking to invest a substantial amount of money into multiple infrastructure projects across South Africa, potentially creating thousands of job opportunities.
