Capitec Bank announced that its retail customers using digital channels increased by 13% or 1.3 million new customers to 11.4 million by the end of February 2023, up from 10.1 million in 2022.
The banking group, which aims to provide a no-frills, digitally-led banking solution, said its total active customer base grew by 11% to 20.1 million compared to 18.1 million in 2022.
Capitec Bank’s long-term strategy is to move customers to more affordable and secure digital solutions.
“The price changes in our banking fees during March 2023 reflected our long-term strategy with digital transaction fees remaining flat while cash-related fees increased,” said Gerrie Fourie, Capitec’s CEO.
“We also introduced our own secure online payment tool, Capitec Pay, which is the first bank-endorsed application programming interface payment solution. Capitec Pay protects clients from screen scraping.”
The banking group added that expenditure on providing cash to customers has decreased by R45 million as digitisation and load shedding have reduced demand for cash.
Business Banking
Capitec acquired Mercantile Bank in November 2019 to drive its business banking expansion.
The company’s core offering is banking solutions for small- and medium enterprises (SMEs) that have historically been underserved by the South African banking sector.
“We have invested a significant amount of time, energy and resources to ensure that the Business bank is ready for a fully fledged integration with the rest of the group,” said Fourie.
Capitec Business will provide small and medium enterprises with a single solution for all their business needs.
“The aim is to make business banking simple, with one account for life at the most affordable price, with a simple and transparent fee structure. Capitec Business caters for all entrepreneurs, small or large, and will enable them to grow their businesses with easy and instant access to credit,” added Fourie.
“Our digital offering will allow clients to open a business account from anywhere and at any time without needing to visit a Business centre. Businesses will be able to manage their money from their personalised online banking platform and access both their personal and business banking profiles from a single app.”
Customers will have access to additional products including merchant services, foreign exchange and payment services.
“Clients’ needs will be met by digitally-led services and access to highly experienced relationship bankers at the click of a button or through 20 Business centres across South Africa. Clients will also be supported by Capitec retail branches and will have access to Capitec retail ATMs.”
Capitec Busines gives customers complete control and access to exactly what they need, when they need it. This allows them to better manage their banking and focus on growing their business
