Assessing the competitiveness of Absa bank in the South African banking sector

The main goal of this study is to evaluate customer perceptions of the competitiveness of Absa Bank in South Africa. To achieve this objective, the study is divided into two sections, which were designed as the main research questions. The first question aimed to determine customer perceptions of the level of bank competition in South Africa, while the second question focused on customer perceptions of Absa's competitiveness within the South African banking sector. It was revealed through an Absa Bank communication that Barclays Bank (UK), the major shareholder, was withdrawing from Barclays Africa Group aka Absa Bank due to ongoing uncertainties in the African market. This departure has resulted in mixed reactions from the market, with customers expressing skepticism about the potential impact on the bank's performance. The study was conducted at the Durban Central branch, which serves approximately 150,000 customers. A sample of 400 walk-in customers at the branch was selected using a non-probability convenience sampling technique. Out of the 400 questionnaires distributed, 13 were discarded due to incomplete responses. This resulted in 387 questionnaires being returned. The collected data was analysed using the latest computerized Statistical Package for Social Sciences (SPSS) version 24.0. The findings of the study indicate that competition does exist within the banking sector, with banks employing pricing strategies to compete for customers. Most customers perceive Absa Bank as being competitive in the market. As a recommendation, it is suggested that branch management regularly conduct customer surveys to engage customers and identify areas for improvement that can be incorporated into the branch operations.