Capitec Bank’s Impressive Growth

Capitec Bank’s Impressive Growth

Established in 2001, Capitec Bank has grown to become one of the most popular banking institutions in South Africa.  

Research by Nielsen has shown that Capitec is the most used primary bank in the country. This means that more South Africans are getting their salaries deposited into a Capitec Bank account and they are using it as their main bank for transacting. 

The bank has effectively created the market for a single, simple, cost-effective bank account through the Global One Account. Through the Capitec Global One Account, the bank offers clients a unique banking solution that allows them to combine a range of services, using just one card. 

The account allows customers to earn interest on positive balances (5.35% p.a) and offers customers bank charges of around R30. 

These are a few reasons that have led to Capitec Bank’s impressive growth. The bank now has 7.9 million customers. 

More examples of Capitec Bank’s impressive growth: 

In 2016, 1445 new jobs were created. 

31 new branches were opened, contributing to a total of 751 branches nationwide. The branches are open 7 days a week. 

Headline earnings are up by 19% to R1.8 billion. 

The bank also achieved fastest client growth in 6 months in 2016. 

In the last quarter of 2016 Capitec launched its first credit card offering with the aim of drawing in higher income clients. 

Capitec CEO Gerrie Fourie said the bank’s excellent client growth could be attributed largely to a combination of increased branch distribution in key malls and a strong brand proposition of simplified banking and value for money. 

The bank continues to maintain a conservative credit model and has tightened its credit granting criteria. 

New functionality added to the Capitec Bank remote banking app has made it easier for customers to manage their money anytime, from anywhere in the world.

Categories: Financial tips