SA’s digital banking group Capitec informed investors today that its rewards programme, Live Better, now reaches 8.5 million customers.
“Now fully-fledged, Live Better is already the fastest growing rewards programme in South Africa with 8.5 million clients that are registered,” Capitec said on Thursday.
“Clients benefit from Bank Better rewards, automated savings tools, and Spend Better partner discounts as we aim to help clients save R1 billion by the end of February 2023.”
The Live Better rewards programme encourages clients to Bank Better, Save Better and Spend Better.
All credit card holders get 1% cash back on the value of their credit card purchases.
Clients that attain monthly Bank Better goals also qualify for 0.5% cash back on their debit and credit card spend.
During the six months to end-August 2022, Live Better clients received cash backs amounting to R97 million.
Capitec added that clients also earn cash back and discounts when they spend with its reward partners.
“Our automatic saving tools, Round-up and Interest Sweep, encourage a savings culture and clients receive higher interest rates on funds in their Live Better accounts. At the end of August 2022, the balances in Live Better savings accounts amounted to R194.8 million (August 2021: R26.2 million).”
Capitec said transaction expenses grew by R0.6 billion primarily due to the growth in transaction volumes.
It added that abnormal rebates in the amount of R143 million reduced expenses in the comparative period and cash backs paid to our clients as part of the Live Better rewards programme increased transaction expenses by R97 million in the reporting period.
“The Live Better rewards programme will grow transaction income in the long term. The cash backs are also part of our strategy to shift clients from cash to digital transacting. After adjusting for these differences, transaction expenses grew by 27%.”
Capitec Bank rewards shareholders with an interim dividend of 1,400 cents a share for the six months to end-August 2022, as the bank signs up 165 000 new customers a month for the past year.
The bank informed investors today that directors resolved that a gross interim dividend of 1,400 cents per ordinary share be declared for the 6 months ended 31 August 2022 versus 1,200 cents a share on 31 August 2021. There are 116 099 843 ordinary shares in issue.
The banking group added that on average, over 165 000 new clients have joined the bank every month in the past year.
Its active client base increased by 13% to 19 million and digital banking clients that bank on the app, internet banking and USSD increased by 21% to 10.8 million – now representing 57% of its total active clients.