How many new credit card clients Capitec is adding each month

South Africa’s second biggest bank by customers, Capitec says it is adding 20,000 new credit card customers a month, having reached 200,000 customers in August – nine months after launching the offer.

Capitec launched it credit offering in November 2016, and had issued 130,000 new credit accounts by May 2017. The bank has since added 70,000 more clients.

Capitec CEO, Gerrie Fourie, said: “We believe that the numbers speak for themselves, with the credit card, the 200,000 clients make up a book of R1.3 billion. And it has only been in the market since November last year.”

In reporting its results for the six months ended August 2017, Capitec recorded total client growth of 106,000 per month over the last 12 months to 9.2 million customers, from 7.9 million in 2016.

Loan revenue, in-line with loan book growth increased by 10%. Loans and advances in an arrears and rescheduled status decreased by 14% while the net loan impairment expense increased by 8%. Net transaction income increased by 29% in the current six month period and operating expenses increased by 20% in support of the bank’s growth initiatives.

Notably, the bank – which is an unsecured lender – said that its credit offering could effectively compete with lenders in the secured credit market.

“We’ve changed our credit offering by lowering both interest rates and credit card fees to bring the cost of unsecured credit more in line with that of secured credit,” Fourie said.

Capitec also unveiled a new credit solution in June 2017.

“We were able to use our processes and systems to achieve better interest rate options from as low as 12.9% per annum for our clients on our fixed-term credit products. The interest rates in this solution are competitive with secured credit market rates,” Fourie said. The bank also reduced the monthly fee on its credit card to R35 per month.

The bank’s credit offering links directly to the Global One account – the only account the bank offers – meaning all accounts can be accessed with one card.

It gives clients access to six linked accounts, including a credit facility, a transactional account and four client-defined savings plans.

Read: Capitec is adding 106,000 new clients per month as earnings climb

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How many new credit card clients Capitec is adding each month