A new bank, called Capitec, aims to provide financial services to people who are not welcome at the big banks.
Capitec, previously known as Keynes Rational, was unbundled from the PSG group and listed separately on the JSE Securities Exchange earlier this year. It aims to provide a national network of branches and basic financial services to the country's lower income groups.
Michiel le Roux, the chief executive of Capitec Banking Holdings (the holding company of the bank), says the bank intends bringing financial services to its target market, with the emphasis on affordability, simplicity, accessibility and personal contact.
Le Roux says low-income earners want low-cost loans, savings accounts with high interest rates and low transaction charges.
Personal contact is of particular importance because the market was, up to now, mainly serviced by a faceless provider of loan finance, represented by commission-driven agents, he says.
Services currently offered by Capitec include:
- Short-term loans (30 days) of up to R10 000 to individuals with an average monthly household income of between R1 113 and R2 289. This loan is available through Capitec's Finaid division. From August, loans repayable over six months will become available;
- Short-term loans (30 days) of up to R10 000 to individuals with an average monthly household income of up to R1 595. This loan is available through Capitec's branch network; and
- Start-up loans of up to R20 000 and working capital loans of up to R2 000 for the informal sector.
From July, Capitec plans to introduce full banking services with its savings accounts. Access to the accounts will be by ATM card, which will also serve as a debit card (this card can be used to pay for goods and services).