CAPITEC EYES THE MIDDLE CLASS
Capitec is looking to grow its market share in the local middle-income market after establishing a strong position among low-income earners, CEO Gerrie Fourie said during an interview.
Fourie estimated that low-income earners made up 14 million people, middle-income earners 4 million people and high-income earners 700 000 people.
Capitec defines a low-income earner as a person earning less than R10 000 per month, a middleincome earner generates between R10 000 and R30 000 per month and a high-income earner generates more than R30 000 per month.
Fourie said that Capitec estimated that the bank had a 27% share of low-income earners, an 11% share of middle-income earners and a 2% share of highincome earners.
Capitec would be targeting middle- and highincome earners by having branches in top-end malls, through the launch of its credit card and the bank’s low-cost fee structures.
Higher-end earners would remain out of Capitec’s reach as they preferred private banking services, Fourie said.
In September last year, Capitec launched its credit card.
Fourie said that, at the end of February, there were 100 000 Capitec credit cards in issue out of 8.3 million credit cards in issue in South Africa.
The number of its credit cards being issued every month was about 20 000.
The credit card loan book now stood at R560 million out of a total local credit card loan book of R100 billion.
Fourie said that 80% of the Capitec credit cards were issued to existing Capitec clients. Capitec would only start advertising its credit card from the third quarter of 2018.
During the year to February, Capitec gained 1.3 million clients to take its total clients to 8.6 million, including 3.9 million banking clients.
In the same year, Capitec added 76 new branches and 400 new ATMs. In the year to February 2018, Capitec was looking to add 40 to 50 new branches and 400 new ATMs.
During the year to February 2017, Capitec added 1 629 extra jobs to take its staff count to 13 069 people.
Four-hundred to 450 people were joining the company each month, Fourie said.