Capitec Bank has thrown its weight behind Home Affairs Minister Leon Schreiber’s initiative to modernise South Africa’s population registration database. This comes after digital bank TymeBank strongly criticised Schreiber’s decision to impose significant price hikes for online identity verification services.
The move signals growing tensions between financial institutions and the government over the cost and efficiency of critical ID checks.
“Capitec supports the Department of Home Affairs’ initiative to upgrade the National Population Register and enhance the stability and reliability of its Online Verification System,” Capitec said in a statement.
“A secure and stable national identity system is crucial for safeguarding South Africans against fraud and fostering a trusted digital economy.”
Capitec added: “While we understand these crucial upgrades require a fee increase from the Department, we have decided to absorb the additional costs. This means our clients will see no change to their banking fees as a result of this initiative for the current financial year.
“The digital identity verification service is a critical building block to prevent fraud, which ultimately comes at a significantly higher cost to all South Africans. By ensuring this system remains robust, we are helping to build a safer and more accessible financial future for everyone.
“Capitec remains committed to working with the government to advance secure digital banking and protect our clients from evolving threats.”
TymeBank’s Co-founder Coenraad Jonker Slams Home Affairs ID Fee Hike
TymeBank has issued a strongly worded open letter to the Minister of Home Affairs, calling on the Department to urgently reverse its gazetted decision to implement a 6,500% increase in identity verification fees, effective 1 July 2025. The bank describes the move as a “crippling” blow to financial inclusion and digital progress in South Africa.
The open letter highlights the critical role of the Department of Home Affairs’ identity verification services in onboarding customers, ensuring anti-money laundering compliance, and expanding financial services to excluded populations.
