Capitec Bank: Low-Cost Banking for Joe Average

Abstract

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.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

Resources

Exhibit 1 Capitec Bank: The Present Profile

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Source: Courtesy of Capitec, August 2006.

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Source: Courtesy of Capitec, 2006.

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Exhibit 2 The Market: Average Income Spread

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Exhibit 3 The Average Client

Source: Courtesy of Capitec, 2006.

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Exhibit 4 Mobile Banking

Source: Courtesy of Capitec, 2006.

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This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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