Innovation and Transparency Add Impetus to Capitec’s Sustained Growth

SA’s youngest bank announces three million clients at AGM

South Africa’s youngest retail bank, Capitec Bank, today announced at its AGM that its burgeoning client base has reached three million. This is an increase of 890 000 clients since February 2010. It also reported continued profit growth of 46% to R640 million due to increased activity across its simplified transaction, savings and credit offering. Riaan Stassen, Capitec Bank CEO cited, its “no frills” banking approach that puts its clients in control as well as an aggressive transparent pricing approach, among the core reasons for the on-going growth.

Stassen says, “South Africans are increasingly frustrated with the complexity of traditional banking. This has led to more and more consumers responding to our simplified banking offer where you know what you get and you know what you pay.”

In fact, Stassen says that since warning South Africans about hidden terms and conditions in its latest advertising campaign that launched in March, new client acquisitions have notably increased and “is testament to consumers’ ubiquitous negative sentiment towards traditional banking.”

Yet, while attracting new clients is fundamental to the bank’s growth; keeping them is too, says Stassen.

“Capitec’s business model maximises the use of technology to significantly minimise admin. Time taken to conduct day-to-day banking is reduced; as are associated costs. This means we can afford to offer the lowest fees in the country.”

Add to this that Capitec is the first South African bank to trade on Sundays in major malls – in line with urban retailers’ opening hours – in addition to staying open later than its competitors during the week. Stassen says “it is not surprising that South Africans in the know are increasingly choosing Capitec.”

It’s innovations like these, as well as transparent communication such as SMS alerts that inform clients of their monthly fees  and ways to save on transaction cost that Stassen believes have sustained the bank’s impressive growth since it launched 10 years ago - and will continue to do so in the future.

“Claiming transparency and innovation means nothing unless it is underpinned by real solutions. Because of this, we are constantly striving to innovate the local banking sector to deliver tools and services – which include Sunday trading – that put our clients in control through clear communication and enable them to choose how, or when, they want to conduct their banking.

“Using this approach, one could liken us to international brands such as Apple and Facebook or locally, kulula – all of which are doing things differently and radically changing their respective industries for the better,” concludes Stassen.

For more information about Capitec Bank or to view the Integrated Annual Report visit: www.capitecbank.co.za.