Capitec Bank Ltd is celebrating its 19th anniversary this year. Coming into a banking business dominated by heavyweights, Capitec bank gave it everything it had to compete with the big boys. Capitec Bank Ltd is now one of the country’s top five banks. According to Consulta, Capitec Bank is South Africa’s second best bank in terms of customer satisfaction, trailing only African Bank.
The bank is rapidly expanding, with 120 000 new accounts being opened for customers each month, according to reports. It has more than 6.3 million active users. To today, the company employs approximately 12 000 people. The figures are a basic indicator of success for a company that opened its doors 19 years ago. Capitec Bank does not offer commercial banking services to corporations, trusts, or partnerships.
Capitec Bank does not offer business banking services. Sole proprietors, on the other hand, can create bank accounts, take out loans, use credit cards, and bank with Capitec. Given Capitec’s reputation of cheap banking expenses, it will be fascinating to watch how the bank would offer its commercial services.
Capitec bank offers 6 types of services. These services include Savings, Loans, credit cards, debit cards, commercial banking, investment banking and investments.
Here are some of the services from Capitec Bank Ltd
Capitec bank gives out personal loans to qualifying individuals. You can apply for a personal credit of up to R250,000.00. The loan amount is repayable between 1 – 84 months. The choice is yours on how much you want to take and for how long you want to repay your loan. All this is subject to affordability and credit check.
Money is available immediately after being approved. With interest starting from 12.9% per annum. Interest is personalised, so you can be charged more interest if you have bad credit.
Capitec bank offers home loans to anyone between the ages of 18 and 60. With up to 100% of home loan value financed. Capitec bank works with SA home loans for home loan finance. Loans start from R100,000.00 to a maximum of R5,000,000.00. You can pay for your home loan for a maximum period of 240 months. Interest on your home loan is subject to your credit profile and affordability.
Capitec bank allows the use of one card to access savings and credit. There is no longer a need to carry multiple cards, you can now use one card for banking. The Capitec bank credit card comes with low costs. The monthly account fee is R35. You get paid for holding a positive balance on your credit card. The positive balance interest rate is 4.85% per year. You get a credit of up to R150,000.00. The credit card comes with a with an insurance cover that covers for retrenchment, death, and illness.
Formally known as the Global one account, the Capitec debit card is a low-interest savings account. This account is meant for making banking easy and affordable. Over 5.5 million of capital clients who hold the Capitec debit card pay less than R50 per month on bank charges. In the process saving clients millions of rands. Charges on the global one account are low. With card purchases countrywide and worldwide at R0 per transaction.
Withdrawals at till only cost R1. Atm withdrawals on Capitec ATMs cost R6 per R1000 and R8 per R1000 at other banks ATM in South Africa. Immediate payment cost R8 per transaction to any bank account in South Africa. There are many things that you can do with the Capitec Bank debit card. You can use it to book flights, transact online, pay at tills, withdraw at any ATM in South Africa and swipe anywhere in the world.
Making a payment to a Capitec client is easy with just using their phone number to make a payment. Another added feature is that you can send money to anyone in South Africa with your global one account, collection of the money is at any checkers or Shoprite countrywide.
Capitec Bank has multiple types of investments. Investments are from savings such as fixed-term, tax-free and normal savings account. These accounts yield different returns since they are for different purposes. Tax-free savings account uses both nominal and effective interest rates. The nominal rate is used for daily interest calculation until it is capitalized at the end of the month.
Effective interest rate is then used for interest earned over the 12 month period of the investment. Fixed-term savings plan allow you to invest for a period between 6 to 60 months. This plan allows clients to reinvest interest from year to year. Clients can earn an interest of up to 8.5% from this account type. Maximum amount threshold is R20million that can be invested. The minimum amount that clients can deposit is R10,000.00.
Capitec bank mobile app assists customers with their everyday banking. One can send money in real-time without going to a bank. You can easily apply for loans and credit cards on the app. Can also send money to none Capitec bank Ltd customers to collect at Shoprite or checkers. Other functions include statement downloads, balance check, debit order schedule, interbank transactions and debit card applications.
Capitec Bank Ltd may be here to help the low class and middle class with affordable banking, however, there are many things that the company does well. With the highest customer satisfaction in the country, it is no surprise that the bank is doing so well locally. Having assets of more than R63 billion, the company is now a banking giant.
The company’s branches grew from 550 in 2017 to 850 in 2020, a 35% increase in a space of 3 years. During the same period, the share price increased from R700 to R1000. The company is growing very fast than anticipated. Maybe we’re are looking a the next banking leader in South Africa.
The issue of business banking is something that capitec bank need to work on as there is no business banking for companies. A very serious issue for Capitec bank fans. The company doesn’t have any private banking facilities. This may be due to the fact that the company promises low-interest rates and low service fees. With private banking, all might change which will be a drift from the company’s core values.
Capitec Bank Ltd has proven itself to be a great company and has fulfilled its promises throughout. Its competitive nature has woken many banks to rethink banking. It has brought exciting times in banking in recent years and the future company’s future looks brighter.