Capitec Reveals Retail Store Concept at 500th Branch Launch in Morning Glen

Capitec Bank, South Africa’s fastest growing retail bank for individuals, today revealed its new branch concept that was developed in partnership with the international retail designer Allen International at Morning Glen Mall, Johannesburg. 

The launch also marks the bank’s opening of its 500^th branch. Key reasons cited by CEO Riaan Stassen for the redesign are common questions asked by consumers about outdated trading behaviours in the banking industry.

Stassen said, “In our view, there are seven points which the public are questioning their banks about. They are:

1. Why do clients still have to fill in forms when they go to a bank in this day and age?
2. Why can’t clients see what consultants have on their computer screens before them – it is not a secret?
3. Why do banks have glass barriers between the client and the customer – it restricts service?
4. Why are Branch Managers concealed at the back of a branch, hidden away from clients? They should be the custodians of client relationships.
5. Why must clients stand in queues just to be told that they have the wrong information or documentation, or that they are in the wrong queue?
6. Why do banks close at 3.30pm in the afternoon, and why are they not open on Sundays?
7. Why are bank fees structured in such a confusing way?

“We live in the 21st century and technology should make access to banking easier for clients. The banking experience needs to change and banks must take ownership of helping clients manage their financial lives better.” Stassen said.

He went on to say that the 500^th branch design aimed to achieve this by providing an experience for consumers that takes banking into a new realm. “We want to give clients options that empower them to make the best choices. Our new front-end screen flow, due in July, will do this.”

The front of the new branches will be completely open like retail stores such as Woolworths or Edgars. Moreover, as no cash is held in-branch, excessive security found in other banks is not needed. 

A strong focus on human interaction and personalised service is also central to the new design. For example, the branch manager sits in the front of the branch to monitor and tend to clients’ needs as they arrive. “Top management must be regularly available in the forecourt of branches to better understand how to address the service requirements and needs of customers.” Stassen added.

Clients also sit alongside a consultant so they can view their accounts together on the consultant screen, instead of the bank having ‘exclusive’ access.

“We believe personal interaction and support is very important to consumers. At a time when banks are moving more and more online, making their services faceless and impersonal, our view is that consumers prefer the opposite. This is why we are structuring our brick-and-mortar environment to focus on relationship building and client support, while our virtual channels will continue to be used primarily to provide easy, convenient access to transacting and information,” explains Stassen.

This ‘humanness’ is also evident in the branch’s use of branding and signage: A bold ‘Hello’ wall welcomes clients, while literature is simple, clear and to the point.

“Offering communication in a client’s vernacular is key to their understanding of our product. As such, everything is available in English and the region’s mother dialect,” he says. Capitec Bank employs consultants from the relevant areas to magnify this level of personal service.

Another interesting feature is the use of the Capitec Bank logo. Its red and blue colours, together with the central negative space, create the flow of the branch where each side represents a division – blue is for quick transactions and red for consulting and service. These are clearly divided by the client waiting area, which is situated under a bright sky light.

“The focus on ‘red’ or ‘blue’ enables clients to choose what they want, making the in-branch process simpler and quicker. But to speed things up even more, the branch’s Client Service Champion greets everyone upon arrival, enquires as to their needs, ensures that they have the necessary information to minimise inconvenience for clients, and directs them to a Q-Matic waiting system where they join the relevant seated queuing system.

Besides the new design features, some of the more traditional ones remain. Among those is the biometric identification system which Capitec Bank pioneered locally in 2004. It uses a client’s fingerprints as verification for his account access, which simplifies service steps, reduces service time and increases security. Another cost-saving feature is the absence of a back office in the branch.

“Capitec Bank has grown considerably since its launch in 2001 largely because of its low fee structure and quick, no-fuss service. We are able to offer this because our processes take place in realtime and there is no back office which reduces our overheads. This benefit is directly transferred to our clients in the form of lower fees”, Stassen confirmed.

With a client base of over 3.5 million and a strong focus on opening branches in higher income suburbs in coming years, Capitec Bank anticipates its growth among a diverse range of clients to continue.

“We are increasing our presence in higher income areas because our model appeals to everyone, whether you earn R5 000 or R50 000 a month. As such, we plan to roll out another 200 ‘designer’ branches by 2015 largely in suburbs, retail malls and surrounding areas. And because the new branch cost is similar to our previous design to implement, our clients won’t need to absorb increased fees.”

The other 499 existing branches nationwide will be upgraded in due course over the next few years.

For more information on Capitec Bank or to view a virtual tour of the new branch, visit www.capitecbank.co.za