The document provides a PESTLE analysis of the banking sector in South Africa. It begins with an introduction to South Africa's government and demographics. Next, it analyzes the political, economic, social, technological, legal, and environmental factors impacting the banking sector. The political analysis describes South Africa's government system and the dominance of the ANC party. The economic analysis outlines South Africa's key industries and GDP trends. The social analysis notes South Africa's diversity and religious demographics. Technological factors like ATMs, internet banking, and key providers are examined. Several important legal acts regulating the banking sector are also summarized.

1. PRESENTED BY
SUMEDH GHARAT
SWAPNIL BHOSALE
SWAPNIL MAGAR
TANMOY TRIVEDI
TANVI NARKHEDE
TIJO THOMAS
PESTLE Analysis
of Banking Sector in South Africa

2. Contents
 Introduction
 SWOT Analysis
 Political Analysis
 Economical Analysis
 Social Analysis
 Technological Analysis
 Legal Analysis
 Environmental Analysis
 References

3. Introduction
MOTTO : UNITY IN DIVERSITY
GOV: Constitutional Parliamentary Republic.
PRESIDENT : Jacob Zuma DEPUTY PRESIDENT : Kgalema Mahlangu.
SPEAKER OF THE NATIONAL ASSSEMBLY : Max Sisulu
7.80
0.9
1
0.3
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.

4. 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

5. 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.

6. 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

7. Continued ……
Currency of RSA is South African RAND
Analysis 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

8. 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.

9. Technological Analysis
Computerization
Networked PC’s
Currency
Counters
Satellite Banking
Security
Concerns
Biometrics
World Wide
Space
Websites
Electronic
Transfer
ATM’s

10. Continued…….
Other Facilities :
IT
Phone banking
Internet Banking
System Generated Messages
Integrated Applications SOA

11. 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

12. 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.

13. 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)