(University of the Witwatersrand, Johannesburg, 2023) Mapena, Thabang; Hoohlo, Mphekeleli
The increase in competition and the scramble for customers in the financial industry has led to the convergence of banking and insurance to form what is known as
Bancassurance. Bancassurance, as the name suggests is the distribution of insurance products using bank platforms. Although two parties get into the
bancassurance agreement in search of some mutual gains, it comes with unintended consequences which among other things affect the banking efficiency
of banks. This study assesses the efficiency changes brought about by Bancassurance in the SADC commercial banks. Using Data Envelopment analysis with the return to scale, an analysis was done on 21 banks with active insurance income on a case and control methodology. The results showed insurance income having no impact on the regional banks’ efficiencies. The income insurance however had an impact on some banks’ returns to scale
