Not too long ago, many South Africans had a “bank manager” they knew by name. You could walk into a branch, sit down with someone who understood your history, and negotiate based on loyalty, trust, and the length of your relationship with the bank. That era is gone.

Today, banking has shifted dramatically. The focus is no longer on long-standing relationships - it’s on numbers, profitability, fees, and risk management. Decisions are increasingly centralised, automated, and driven by algorithms that assess affordability, risk, and return.

Why the Shift Happened

1. Profitability first – Banks are public companies with shareholders to answer to. Every client is assessed on revenue potential, fees generated, and the cost of servicing the account;
2. Risk mitigation – Post-2008 and with increased regulation in South Africa, lending decisions are more rigid. Banks prefer consistency over flexibility;
3. Client churn is expected – Instead of building loyalty, banks pour resources into marketing campaigns and onboarding incentives to attract new customers. Existing clients are often left feeling overlooked; and
4. Technology over people – Digital banking, AI, and automated credit assessments mean decisions are less about personal knowledge and more about the data you provide.

What This Means for Consumers

• Having banked with the same institution for 20 years doesn’t guarantee a better interest rate or approval;
• Clients often discover that new customers receive better offers than loyal, long-standing ones; and
• Relationships are replaced with standardised scoring models - your financial profile on paper matters more than your personal track record.

Where Loyalty Still Exists

Ironically, loyalty is now more likely to come from independent advisors and brokers who advocate for clients across multiple banks. Instead of relying on one institution, consumers can benefit from professionals who understand how each bank views risk, affordability, and client value.

The bottom line: relationship banking as we once knew it no longer exists in South Africa. If you want the best deal, you can’t rely on loyalty - you need to shop around and use experts who understand the system.

Use a reputable mortgage broker

Using a reputable broker will ensure you get more value out of the bank’s offer. By using a broker, you can access multiple offers simultaneously and negotiate on fees and interest rates so you can have the confidence knowing you received the best deal in the market at the time.

Phoenix Bonds is a premium mortgage broker in South Africa, with a proven track record (check out the reviews on Google).  For expert advice and personalised service, fill in your details HERE and one of our experienced Consultants will be in touch.