Capitec Bank: Low-Cost Banking for Joe Average

Capitec Bank: Low-Cost Banking for Joe Average

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By December 2006, Capitec Bank, South Africa's newest listed retail bank, had come a long way from its origins as a microlending organisation in 2001. Over time it had started introducing other banking services to its entry-level clients, so that by 2006 it offered all basic banking services. Capitec's chief executive for marketing and corporate affairs, Carl Fischer, considered the organisation's strategic plan for 2007: to position itself as a proper bank in a much broader target market. He realised that the key to survival for a low-cost bank in South Africa lay in high volumes, but still wrestled with the question of how Capitec could overcome the current perception that it was a niche bank in order to attract the volumes it needed to compete successfully.

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