Banks are now more affordable, and their pricing structures are “more aligned” as the overall competitiveness of the sector has improved across all four transaction profiles since the beginning of 2025, according to labour union Solidarity.
A report by the Solidarity Research Institute (SRI) found that banks are becoming more competitive, making it easier for consumers to determine exactly what they will pay for transactions.
The Solidarity bank charges report focused on the Big Five lenders — Absa, FNB, Standard Bank, Nedbank and Capitec — and included TymeBank and Bank Zero in the online category.
Absa was ranked the cheapest bank in the low-income or basic needs category this year because the bank last year
s stopped migrating customers on Transact accounts to Flexi accounts once they earn more than R3,000 a month.
PayShap transactions with online lender TymeBank are free of charge and money can easily be transferred via cellphone.
Theuns du Buisson, economic researcher at the SRI, says the report shows a significant change in the manner in which instant transfers are made between the accounts of different banks. The PayShap transfer feature allows free transfers to almost all banks for transactions value at less R100 if the customer has a ShapID. The feature further reduces the need for cash when making smaller transactions.
“TymeBank and Bank Zero simply include more free transactions than any of their competitors. It therefore appears as if the traditional banks, with the exception of Absa and perhaps FNB, have decided not to market so aggressively to the low-income market segment,” Du Buisson said.
For the middle class, the study was conducted based on profiles with 25 transactions per month, focusing on accounts marketed to people with appropriate incomes and more sophisticated banking needs. The SRI report found this market is highly competitive, with banks offering various incentives such as loyalty programmes and associated credit cards.
“Capitec is the cheapest at R107.50 [a month] but for only R2.50 more Nedbank’s MiGoals Plus account offers significantly more added value and is regarded as the most cost-effective option in this segment,” Du Buisson said.
While Capitec may not offer an extensive loyalty programme, it was included in the report because of its large customer base within this consumer segment.
Du Buisson notes that this market illustrates that evaluating costs alone is not always the most accurate measure of value for consumers; rewards programmes and other benefits play a role in their decision-making.
In the higher middle class banking segment, for which 30 transactions per month are considered, added value and reward programmes play a bigger role than purely costs.
The report found Nedbank’s MiGoals Premium account to the most cost-effective at R240 a month, with FNB’s Fusion Premier and Absa’s Ultimate Plus strong competitors.
The market has become more competitive with few major price differences making it easier for consumers to compare benefits such as airport lounge access, linked credit cards and 24-hour banking services, it added.
“Clients are however encouraged to determine for themselves whether the extra benefits justify the higher costs,” Du Buisson said. Each bank tries to meet different consumer needs, and consumers must decide which options best meet their needs.”
The report found that the Absa Ultimate Plus account, at R259 a month, provides good value in the higher market. This segment has become more competitive, with no clear outliers.
Given the importance of added value in this market, it is essential that costs remain relatively consistent, allowing consumers to compare these benefits on a level playing field, the report notes.
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