South Africa’s third largest bank, Capitec has introduced its new credit card and it will be available nationwide.
The bank, which has massively grown in its operations over the past few years, with millions of new clients being drawn to the bank for its simplified and more affordable service offerings, has 29% of SA bankers using it as their primary bank according to Nielsen’s 2017 report.
The bank was rated by Lafferty International as the world’s very best posting sparkling financial results for the half year to end August 2016.
According to Businesstech, the credit card offering first surfaced in mid-to-late 2016, when the bank launched a limited trial in the Western Cape at 150 branches in the province.
Capitec chief executive Gerrie Fourie, said the reason the service was restricted was because the facility is tied directly into the bank’s Global One systems, so system strain had to be tested.
“If you’re servicing 7.8 million or 7.9 million, system stability is very important. We just wanted to launch it in the Western Cape and make certain that we have system stability,” the executive said at the time.
Capitec entered the South African market aimed at lower-income markets, but over time has drawn in the middle market with competitive rates and broader service offerings. Now the bank has the higher income market in sight, as it prepares to launch a credit offering, while not deviating from its ‘one account’ culture.
The bank has 31 new branches, 200 new ATM’s or DNR (DNR is where you can actually deposit money, as well as withdraw money, and also get a back statement) and has increased its number with another 1,000 in the last six months so there’s been a big effort to deliver on service and getting our branches out.
The bank quietly launched its offering nationwide in October 2016 without much fanfare, but is gearing up to launch a national marketing campaign to push the product in earnest.
Capitec’s new credit offering directly links to the Global One account, meaning all accounts can be accessed with one card. It also gives clients access to six linked accounts, including a credit facility, a transactional account and four client-defined savings plans.
The credit card also carries a once-off R100 initiating fee, and a maintenance fee of R50 per month. The initial maximum limit for the offering is R50,000 – which is expected to change once the product grows.
The credit card will offer up to 55 days interest-free purchases (with a minimum monthly repayment required of 5% of the outstanding amount), and interest rates will vary between 15% and 21% based on an individual client’s credit profile.
Other interesting offers in the bank’s card include:
- Secured online purchases with MasterCard SecureCode,
- Cashless payments (zero fees worldwide at card machines, online and for telephone and mail orders) and
- No currency conversion fees for international payments.
Because the credit facilities are attached to the Global One account, the same sign-on policies stand – prospective clients will have to apply in-branch so that their biometric data can be captured.
How to Apply for Credit Card by Capitec
To apply for the bank’s credit card, however, clients must provide the following documents:
- Original identification document (must be 18 years or older);
- Original proof of residential address (e.g. municipal rates and taxes account in your name with your street address, not older than 3 months);
- Latest salary slip; and
- Stamped bank statement showing your latest 3 salary deposits.
There is currently no specified minimum salary requirement for the account, but this is subject to change as the product continues to evolve. Right now, successful application is based on an income and affordability check conducted by the bank.
Capitec, however, noted that those who declare themselves as ‘self-employed’ may not be eligible for the product.
Fourie told City Press that within five years, the bank hopes to up its credit card book to R10 billion, or 10% of the local R100 billion credit card book market.