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Capitec’s digital investments sweeten interim results

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Capitec Bank’s digital solutions uptake continued to soar in the six months ended August, with the bank recording a double-digit rise in retail clients using its digital channels.

The bank, which today released unaudited financial results for the six months ended 31 August, says its successful digital strategy led to a strong set of interim results, with group headline earnings up 513% to R3.9 billion.

In the period, Capitec’s clients using digital channels increased by 22% to 8.9 million.

Capitec says in the six months, there was a strong behavioural shift from USSD to the bank’s app, recording a 46% surge to six million clients.

One million Capitec clients shopped online and the bank recorded 843 million logins on its app.

The bank’s digital transaction volumes on its app, internet and USSD increased by 21%, while contactless card payments (tap to pay) also surged.

“We bolstered our digital offering, while staying true to our fundamentals of simplicity, affordability and personalised service. This, combined with our continued commitment to our branch network and call centres, resonated with South Africans from all walks of life. Our retail client base has grown by 2.1 million to 16.7 million clients.

“They performed 623 million digital transactions, an increase of 21% over the past year. We’re seeing rapid growth in South Africa’s digital economy, as clients also adopt contactless card payments and online shopping,” says Gerrie Fourie, CEO of Capitec Bank.

“This period is also a testament to Capitec’s ability to adapt rapidly to prevailing circumstances. Following the civil unrest that resulted in some of our branches in KwaZulu-Natal and Gauteng being temporarily unavailable, the services offered by our call centres were bolstered by our multi-skilled employees from the affected branches. We strengthened the capacity of our online lending team, and our clients can now apply for credit cards and access facilities without visiting a branch.”

For the remainder of the financial year, Fourie says, Capitec will maintain its focus on digitalisation to enhance clients’ banking experience.

“We believe our human connection and service ethos remains our key competitive advantage. We will use advanced technology, data and AI to help scale our personalised banking experience for our clients, while helping them to simplify their banking further.

“This strategy will be assisted by our strategic partnerships with some of the world’s best technology providers. We will also partner with more leading South African consumer brands to offer our clients purpose-designed credit solutions and more Live Better benefits.

“We are committed to our purpose to help people improve their financial lives,” notes Fourie. “We maintain our small company culture and entrepreneurial mindset, and will continue to innovate in relevant ways that help South Africans simplify their banking so that they can live better.”

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19 Aug
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