The Dirty Little Secrets of South Africa’s Banks: How They’re Sucking Up Your Money in IT Spending
Behind the smiling faces of South Africa’s big five banks, a sinister plot is unfolding. They’re not just shelling out billions on IT infrastructure, they’re using your hard-earned cash to fuel their own digital power trips.
According to a recent review of the annual results of South Africa’s top banks, Absa, Capitec, FirstRand (FNB and RMB), Nedbank, and Standard Bank, the real culprits are data science and artificial intelligence. These fancy technologies are driving up IT spending, and you’re paying the price.
The Banks’ Dirty Little Secret
Capitec, the country’s largest retail bank, spent R1.9-billion on IT last year, a 27% increase from the previous year. But what’s behind this sudden surge in spending? According to Capitec, it’s all about moving their data to the cloud and increasing system stability. Sounds legit, right? Wrong. This just means they’re shifting their risk from their own servers to the cloud, and you’re footing the bill.
The AI Takeover
Standard Bank, another major player in the banking scene, saw its IT spend increase by 14% last year, driven by investments in cloud migration and software licenses. But what does this really mean? It means they’re using your money to develop more efficient ways to scam you. "System stability and availability was excellent throughout the year," they claim. But don’t be fooled – this just means they’re getting better at hiding their tracks.
The Skills Gap Con
And then there’s the skills gap. The banks claim they’re struggling to find the right tech talent, so they’re setting aside even more cash to upskill their existing staff and offer bursaries to new recruits. But what’s really happening is that they’re using your tax money to fund their own training programs. After all, who needs to hire competent staff when you can just shell out for training?
The Bottom Line
In conclusion, South Africa’s banks are bleeding your money dry with their IT spending habits. They’re using your cash to fuel their own digital ambitions, and you’re stuck paying the price. So next time you make a withdrawal, remember: the bank is not your friend.