The specifics of banking in South Africa

South Africa boasts one of the most robust banking sectors on the continent. It drives economic growth, supports businesses and promotes financial inclusion. The South African banking system has its own unique characteristics and has made significant strides in the implementation of new technologies over the past decade.

Banking System of South Africa

The South African Reserve Bank (SARB) oversees the banking system in the country. It works with the government to help shape and implement economic policy. The Reserve Bank is responsible for protecting the value of the South African rand (R) and controlling inflation.

There are several different types of banking institutions in the country. These include locally controlled banks, mutual banks, cooperative banks, international banks and foreign banks. Banks in South Africa hold a total of approximately R6 trillion in deposits.

Banks are the backbone of the South African economy. They drive economic growth through investment, provide credit to businesses and individuals, and facilitate trade within the southern African region.

South Africa's banking landscape combines global sophistication with local innovation. The sector is dominated by the Big Five banks — Standard Bank, Absa, FNB, Nedbank and Capitec are known for their comprehensive service offerings. At the same time, digital banks such as TymeBank are changing the industry by providing accessible, convenient and easy-to-use services.

Largest Banks

• Standard Bank Group

Standard Bank Group is the largest bank in Africa by assets, with a strong presence in 20 countries on the continent. Founded in 1862, it has grown into a banking giant providing comprehensive financial solutions, including retail, corporate and investment banking.

Known for its focus on innovation, Standard Bank has embraced digital transformation. It offers user-friendly platforms such as a mobile banking app that cater to a growing base of tech-savvy customers. With a strong reputation for stability and reliability, the bank plays a vital role in driving economic growth in Africa and beyond.

• FirstRand Bank

FirstRand Bank, a powerhouse in South Africa’s financial sector, operates under the FirstRand Group, which owns First National Bank (FNB), WesBank and Rand Merchant Bank (RMB). Known for its innovative banking solutions, the bank combines traditional banking services with cutting-edge digital platforms to meet the diverse needs of individuals, SMEs and large corporations.

Flagship subsidiary FNB is a leader in digital banking, offering user-friendly tools such as the FNB app and eBucks Rewards that drive customer engagement. FirstRand also invests heavily in financial inclusion and SME development.

• Absa Group

Absa Group is one of South Africa’s most prominent financial institutions. Originally established as Barclays Africa Group, Absa rebranded in 2018 and has expanded its operations across 12 African countries.

Recognised for its innovative approach, Absa offers tailored financial products to individuals, businesses and corporations. It is particularly strong in the mortgage and business banking segments, supported by its robust digital banking infrastructure. Absa’s commitment to sustainability and financial inclusion has further cemented its leadership position in the sector.

• Nedbank Group

Nedbank Group is a leading financial institution in South Africa, recognised for its commitment to innovation and sustainability. Founded over a century ago, it has grown to become one of the country’s most trusted banks, with a strong focus on green finance and corporate social responsibility.

Nedbank’s services cater to a wide range of clients, from individuals seeking affordable banking solutions to businesses seeking expert financial advice. Its digital platforms, including the Nedbank Money app and the Avo super app, offer a seamless banking experience.

• Investec Bank

Investec Bank is synonymous with exclusivity and sophistication, serving high net worth individuals (HNWIs) and corporate clients. With a focus on personalised wealth management and investment banking, it has carved out a niche for itself in South Africa and internationally. Its assets under management exceed R322.3 billion ($17.8 billion) in South Africa and $35.6 billion ($2 billion) in the UK, Europe and Asia.

The bank’s dual listing on the Johannesburg and London Stock Exchanges underlines its global reach and prestige. Renowned for its innovation, Investec offers clients access to global markets, tailored financial products and cutting-edge digital tools.

• Capitec Bank

Capitec Bank is South Africa’s youngest major bank and has quickly established itself as a leader in accessible, no-frills banking. Known for its no-frills approach, it attracts budget-conscious customers with a transparent fee structure and streamlined services. Capitec dominates the South African banking sector in terms of customer reach, with over 22 million active customers.

Bank opening hours

National banks have branches throughout South Africa. Bank branches are generally open from 9:00 am to 3:30 pm Monday to Friday (sometimes until 4:00 pm - 5:00 pm) and from 8:30 am to 11:00 am on Saturdays (sometimes until 12:00 pm - 1:00 pm). Some branches open on Sunday mornings, but this is rare. Airport banks may adjust their opening hours to accommodate international flights.

Types of Bank Accounts in South Africa

• Current Accounts:Current accounts are used for everyday banking. They allow you to withdraw money from branches and ATMs, as well as manage your account and send money online. Basic accounts are available with small monthly fees, but you will need to pay fees for services such as sending money and withdrawing cash. Once you have an account, you can apply for an overdraft. Joint accounts are also available.
• Savings and Investments: Banks offer a range of savings and investment accounts. The interest rates you get will depend on how much you save or invest, and whether you need instant access to your money or are willing to lock it up for a longer period.

How to open a bank account in South Africa

Document requirements vary depending on your choice of bank account and whether you are opening a resident or non-resident bank account. In general, you will need to provide the following documentation.

South African bank account for residents

• Passport/birth certificate
• Work permit
• Proof of address
• Bank statements for three months

Non-resident bank account

• Passport/birth certificate
• Proof of address
• Bank statements for three months from your previous country’s bank
• A reference letter from your home country’s bank signed by a bank official

Opening a corporate account

To successfully open a corporate account with South African banks, the company must be registered in one of the countries supported by South African banks, have positive reputation. Its members must not be listed on sanctions lists. The company's scope of activities must not conflict with the bank's policies.

The right corporate account depends on the type of company you run. If you run a limited company, you'll need a corporate account. All major banks offer corporate accounts, and as with personal accounts, you'll have a number of different options.

Small businesses can open a basic account with low fees, allowing them to send and receive money. More comprehensive corporate accounts are also available. They offer dedicated business support lines, payment collection options such as card machines, and the ability to apply for business loans and revolving credit.

To open a business account, you will need identification for all owners and signatories, proof of your address, and registration documents if you own a registered company.

Offshore Banking in South Africa

South African citizens can take a maximum of R10 million per year offshore subject to tax, or a maximum of R1 million tax-free, although this will need to be registered with the Reserve Bank.

If you decide to transfer money offshore, you will need to use an authorised bank to complete the transaction. Once the money has been transferred, you can convert it into the currency of your choice and either keep it in the account or invest it.

Alternatively, you can deposit your savings into an offshore fund, although your money will remain in South African currency as it will not physically leave South Africa. The minimum deposits for these funds are much lower than direct offshore banking and you will not need tax clearance.