Capitec Bank: A complete view of the bank and its innovative services
Capitec Bank is one of South Africa’s leading banks, with over 10 million customers and 850 branches across the country.
But how did it come about and what are the differentials it offers its customers? In this article, we will tell the story of Capitec Bank, from its humble beginnings to becoming an innovative and accessible digital bank.
We will also show you the banking services it offers, such as current accounts, savings, investment, credit and cards.
Finally, let’s get to know the partnerships and community programs it carries out to contribute to the social and economic development of South Africa. Shall we begin?
History of Capitec Bank: From its humble beginnings to one of South Africa’s leading banks
Capitec Bank was founded on March 1, 2001 by Jannie Mouton, Michiel Le Roux and Riaan Stassen.
The founders were former executives of PSG Group, a South African financial group that had a stake in BoE Bank (Bank of England), a traditional commercial bank.
In 1999 BoE Bank was acquired by Nedbank (one of the big four banks in South Africa) and the founders of Capitec decided to leave the business.
They saw that there was an opportunity to create a different bank in the South African market: a bank aimed at the needs of low-income people, which were underserved by conventional banks.
To do this, they bought a small microcredit company called Smartfin Services, which had 19 branches in the Western Cape province.
They turned that company into Capitec Bank and began expanding their branch network across the country.
As a result, they developed a business model based on simplicity, transparency and low cost to offer their customers a single account with a fixed monthly fee and unlimited access to all service channels.
In 2007, the bank surpassed the 1 million customer mark and in 2010, it became the fifth largest bank in the country by number of customers.
In 2012, it launched its mobile application, which allowed its customers to carry out bank transactions using their cell phones.
In 2014, it introduced its credit card, which offered benefits such as cashback and interest-free installments, and in 2016, it was named the best bank in the world by banking consultancy group Lafferty, a feat it repeated in 2017.
The following year, it reached the milestone of 10 million customers and became the largest bank in South Africa by market value.
Finally, in 2020, it launched its Global One account for legal entities, expanding its target audience, and in 2021 it celebrated its twentieth anniversary with a national campaign featuring Brazilian model Gisele Bündchen, who personified the bank’s commitment to transparency.
Capitec Bank banking services
Capitec Bank offers its customers a single account: the Global One account. This account is an integrated transaction/savings and credit account, which allows the customer to do three things: save, borrow and transact.
Financial technologies
Capitec Bank uses technology to offer its customers a more convenient, secure and personalized banking experience. Some examples are:
- Capitec’s mobile application allows customers to make bank transactions via cell phone, at no additional cost;
- Global One Account is an exclusive Capitec service that allows customers to open an account in US dollars within.
Competitive rates and fees
Capitec Bank is proud to offer its customers competitive rates and fees, which allow them to save money and have more control over their finances.
Capitec Bank fees and charges are:
- Monthly administration fee: ZAR 7 (about US$50) for the Global One account, which includes unlimited in-bank transactions and purchases with a debit or credit card;
- Withdrawal fee: ZAR 75 (about US$ 0.60) for withdrawals at Capitec or partner ATMs, such as PnP/Shoprite/Checkers/Boxer;
- Transfer fee: ZAR 1 (about US$ 36) for transfers between Capitec accounts or to other banks via the app, internet banking or USSD;
- Payment fee: ZAR 1 (about ZAR36) for payments of bills or slips through the app, internet banking or USSD;
- Money transfer fee: ZAR 50 (about US$ 3.40) to send up to ZAR 1,000 via the app, internet banking or USSD;
- Interest rate: The personal credit interest rate varies according to the amount, term and customer profile;
- International processing fee: The fee is 2% of the transaction amount.
Capitec Bank also offers free services to its customers, such as:
- Balance inquiry and statement by application, internet banking or USSD;
- Real-time notifications of account movements through the application;
- Facial biometrics for app authentication;
- Credit card management through the application;
- Access to the Global Account through the application;
- Opening and closing of savings plans through the application or internet banking;
- Transfer between the savings plans themselves via the application or internet banking.
Capitec Bank partnerships and community programs
Capitec Bank is not only concerned with offering quality banking services to its customers, but also with contributing to the social and economic development of South Africa.
Therefore, the bank carries out several partnerships and community programs that aim to support social, educational, environmental and cultural causes.
The main actions are:
- Capitec Foundation;
- Dreamfields Project;
- SAICA Thuthuka Bursary Fund;
- The Clothing Bank.
If you are interested in Capitec Bank and want to know more about its services and benefits, visit the website or download the bank’s app on your mobile phone to take advantage of South Africa’s leading institution.
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