A South African rookie bank is shaking up the financial sector in the country by doing things differently and attracting numerous clients.
The SA banking industry has long been dominated by an established group of four giants, Nedbank, Standard Bank, FNB and ABSA, but a new player in the market has been making waves.
Capitec Bank was recently announced as the best bank in the world by international banking advisory group Lafferty in its inaugural Bank Quality Rankings.
Here are 12 ways in which a relatively new South African bank has managed to shake up the banking sector in the country.
In last year’s South African Customer Satisfaction Index (SAcsi), Capitec Bank came first with 82.2 points, illustrating their focus on putting the customer first and ensuring that their reputation is built on the satisfaction of the people who use their bank.
Extending branch closing times
Prior to Capitec entering the market, typical banking hours were kept to something similar to 9:00-15:30, with minimal banking hours on a Saturday. Capitec questioned this practice, and launched with extended banking hours throughout the week, forcing the competition to follow in their footsteps and do the same.
Simplifying banking
The bank offers its clients the Global One account, as a quality product which is essentially a transacting/savings account and credit facility all rolled into one. While other banks try to offer as many products as they can, Capitec focuses on simplifying the product they offer and getting the basics right.
Increasing their distribution footprint
During the 2014-15 financial year alone, the bank increased its distribution footprint in South Africa by another 39 branches and 500 ATMs. A strategy of consistently opening new branches and ATMs has provided access for more people in more areas, when many banks are working to move away from branch interactions.
Maintaining a strategy as a retail bank
Capitec operates as a retail bank that serves both individuals and businesses, but does not provide business banking for close corporations, companies, partnerships or trusts. By not spreading themselves too thin, they are able to focus better on their customers.
Keeping prices low
Capitec Bank is the bank with the lowest fees in South Africa by far, even for middle-income clients, and this has been an important message within their marketing. The banking industry in SA has always charged high fees, but Capitec is breaking that stigma and putting pressure on their competitors to follow suit.
Targeting areas that were previously ignored
Capitec remains the cheapest bank when it comes to low to middle income accounts, and as a result the lower income groups have flocked to the bank. Capitec has also established bank branches in numerous townships and smaller rural towns that have traditionally not enjoyed direct banking access, while building mobile apps that provide extended access.
Implementing a solid social media strategy
According to social intelligence firm Ubiquity, Capitec is South Africa’s best bank, based on its analysis of social conversations online in the country, between consumers of various banks. Interestingly, it was the only bank to receive a net positive opinion on social media. The company puts a great deal of effort into interacting with customers, both current and potential.
Providing excellent service
The Capitec staff at branches and call centre agents for the bank are highly trained, and they work hard to provide all customers with excellent service. This training and importance placed on good service is clearly making a difference.
https://www.youtube.com/watch?v=s_O8gNrK35I
Developing an app that works well
Keeping with the theme of simplicity and functionality, Capitec has designed a mobile banking app that targets the mobile-focused South African market with all of the necessary functionality linked to their accounts and products.
Providing marketing budget for television advertising
The bank has dedicated a great deal of budget to connecting with potential customers through television advertising, especially on the public broadcaster, SABC, ensuring that they reach a wide market and introduce their services to as many people as possible.
Hiring good people and keeping them happy
Part of the bank’s strategy is to ensure that they have the best employees on their books, as the most qualified, friendly and happy staff transmit those qualities to their customers, while they are also likely to go the extra mile for the customer.