WHILE many people view Capitec Bank as a financial services provider to the poor, the bank says it just simplifies the banking system, something both the rich and poor want.
Sowetan spoke the Capitec Bank's CEO Riaan Stassen on why the bank has claimed its market share in such a short time.
Capitec Bank received its trading licence in 2001 and listed on the JSE the following year. It then started its operations as a micro lender.
Today the bank has 4percent market share with 2,5million customers, 1500 ATMs and 426 branches countrywide. It is owned by investment company PSG with 34,9percent shares, BEE consortiums own 15,9percent, chairperson Michiel le Roux 15,3percent, management with 8percent and the public owns the remaining 25,9percent.
Recently the bank reported savings deposits of R3billion from R1,6billion the year before.
Seeing the prospects of growth created by the way the traditional four were doing their business, Capitec Bank started retail banking in 2004 and never looked back.
"We don't believe that when you talk about banking, your income is a guide to what service you need," said Stassen.
He described banking as creating an instrument to enable a person to manage their cash. He said while transactions made by the poor and the rich may differ in size, the needs are the same.
"We simplify banking and make it easy to access and use. We've got a single point of entry for all our customers, which is a Global One Facility, giving customers transactions, savings and credit in one," he said.
"We communicate clearly what we offer and what we charge for it," added Stassen.
He said what separated the bank from the rest was the easy access and the bank charges that people paid.
Withdrawing cash at a Capitec Bank ATM is R3,75 and from retailers it is free until December. After this offer is over, withdrawing from retailers will only cost a customer R1.
Stassen said doing purchases with a debit card was free. He said the bank's customer base ranged from a factory worker to high income groups of LSM nine to 10.
"It's not about your income but simplified bank products and easy access."
To meet the needs of their customers, Capitec Bank strategically puts its branches in shopping centres, next to taxi ranks and railway stations.
The branches open at minimum from 8am until 5pm, with others such as at Park Station opening at 7am while the volume of customers is high.
While complying with the National Credit Act, the bank offers unsecured loans of up to R100000.
"If you go to our bank for credit, you walk out with money in your bank account. Customers don't go to the bank to do administration but for a service so there is no paperwork that people have to do," Stassen said.
He said all people wanted simplified financial services with "clarity on money in, money out and the balances".
To attract people to save, the bank offers higher interest rates for smaller savings. If you save R10000 you a get 7percent interest rate, while if you save more than R10000 your interest is 5,75 percent.
He said the bank would open 55 new branches in the new financial year and has already adopted a more direct marketing approach to reach its market.
Making banking simpler
WHILE many people view Capitec Bank as a financial services provider to the poor, the bank says it just simplifies the banking system, something both the rich and poor want.
Sowetan spoke the Capitec Bank's CEO Riaan Stassen on why the bank has claimed its market share in such a short time.
Capitec Bank received its trading licence in 2001 and listed on the JSE the following year. It then started its operations as a micro lender.
Today the bank has 4percent market share with 2,5million customers, 1500 ATMs and 426 branches countrywide. It is owned by investment company PSG with 34,9percent shares, BEE consortiums own 15,9percent, chairperson Michiel le Roux 15,3percent, management with 8percent and the public owns the remaining 25,9percent.
Recently the bank reported savings deposits of R3billion from R1,6billion the year before.
Seeing the prospects of growth created by the way the traditional four were doing their business, Capitec Bank started retail banking in 2004 and never looked back.
"We don't believe that when you talk about banking, your income is a guide to what service you need," said Stassen.
He described banking as creating an instrument to enable a person to manage their cash. He said while transactions made by the poor and the rich may differ in size, the needs are the same.
"We simplify banking and make it easy to access and use. We've got a single point of entry for all our customers, which is a Global One Facility, giving customers transactions, savings and credit in one," he said.
"We communicate clearly what we offer and what we charge for it," added Stassen.
He said what separated the bank from the rest was the easy access and the bank charges that people paid.
Withdrawing cash at a Capitec Bank ATM is R3,75 and from retailers it is free until December. After this offer is over, withdrawing from retailers will only cost a customer R1.
Stassen said doing purchases with a debit card was free. He said the bank's customer base ranged from a factory worker to high income groups of LSM nine to 10.
"It's not about your income but simplified bank products and easy access."
To meet the needs of their customers, Capitec Bank strategically puts its branches in shopping centres, next to taxi ranks and railway stations.
The branches open at minimum from 8am until 5pm, with others such as at Park Station opening at 7am while the volume of customers is high.
While complying with the National Credit Act, the bank offers unsecured loans of up to R100000.
"If you go to our bank for credit, you walk out with money in your bank account. Customers don't go to the bank to do administration but for a service so there is no paperwork that people have to do," Stassen said.
He said all people wanted simplified financial services with "clarity on money in, money out and the balances".
To attract people to save, the bank offers higher interest rates for smaller savings. If you save R10000 you a get 7percent interest rate, while if you save more than R10000 your interest is 5,75 percent.
He said the bank would open 55 new branches in the new financial year and has already adopted a more direct marketing approach to reach its market.
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