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An evaluation of Nedbank's home loan offering in relation to its market share (case study of KZN).

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Nedbank has intentionally allowed its home loan market share to fall over the past 3 years. The focus has been on cleaning up its existing book and selectively lending to low risk clients. The focuses of the study was to determine the revenue that will be generated by increasing market share, understand the risk appetite in relation to competitors, to evaluate home loan competencies and knowledge of bankers and finally identified growth nodes with regards to home loans. Due to the fact that simple narrow questions will form the basis of the questionnaire, my approach was one of quantitative research were mathematical theory and models could be used as data was presented as statistic or percentages. The numbers have yielded an unbiased result which can be seen as a true indication of the population. The method of data collection was gathered from primary and secondary sources. There were 190 questionnaires sent out with a response rate of121. Advantage to this type of data collection is that anonymity is high and can be administered electronically and avoids interviewer bias. The target audiences were Nedbank bank officials at different seniority levels but are actively participating in the home loan market. Some of the salient findings from the research covered understanding demographics we operate our business in and market segmentation that can be identified in marketing when segmenting the target market. If the bank wants to grow its market share it would need to adjust one if not more of the four elements in the marketing mix. Less income would be generated for the bank if we allowed medium risk clients not to have access to credit. Many value-conscious consumers will buy products on the basis of price rather than other attributes, it is important to keep ones price strategy in line with competitors. The use of technology has been used as an enabler for Nedbank through its Digital channel. Nedbank can grow revenue through improved customer targeting. Provide real time transactional updates. Provide consistent customer experience across channels and provide information based services. It is recommended that the Nedbank should use three strategies to grow its home loan market share. Firstly use acquisition as a vehicle of growth, secondly take market share away from competitors and make it very difficult for new entrants to enter the market. Lastly is to get existing clients to use the home loan product or increase the value initially taken out on their home loan. Innovation continues to be a key differentiator.


Master of Business Administration. University of KwaZulu-Natal, Westville 2015.


Nedbank., Mortgage loans--South Africa--KwaZulu-Natal., Mortgages--South Africa--KwaZulu-Natal., Market share--South Africa--KwaZulu-Natal., Theses--Business administration., Home loans.