Capitec digital banking sees massive growth in South Africa
Capitec has experienced massive growth across its business in South Africa, the company revealed in its latest financial results – published on 1 October 2024.
Capitec attributed much of this growth to its strategic focus and continued investment in digital transformation. This has been an important project for the bank since 2020.
It added that product diversification and client-centric solutions are achieving impressive results and positioning Capitec as a leader in the South African financial services industry.
“Our strong results demonstrate the strength of our diversified business model,” said Capitec CEO Gerrie Fourie.
“We have continued to invest significantly since 2020, despite the tough economy, and have developed solutions that meet the needs of our clients.”
The growth of digital banking
Among Capitec’s biggest successes is its strong performance in the digital banking sector.
Its latest financial results show that active banking app client volumes have increased by 21% year-on-year – from 10.3 million users to 12.4 million users.
Adding over 2 million new digital banking clients to the Capitec App in one year is an impressive achievement. It highlights the success Capitec has experienced in digitally transforming its banking business.
One of the key benefits driving the move towards digital banking is the increased convenience for clients when making payments, said Capitec.
This is reflected in Capitec’s results presentation, which reported that digital and card payment volumes increased by 24% year-on-year. These payment forms now represent 89% of the group’s total transaction volumes.
Furthermore, the Capitec App saw its transaction volumes increase by 30% – and 88% of all digital transactions were delivered through the banking app.
This highlights the importance of mobile banking in the modern market and establishes Capitec as a trailblazer in the sector.
“These figures represent millions of South Africans who are embracing digital financial solutions that make their lives easier and access to finance more affordable,” said Fourie.
“We’re successfully transforming how people bank.”
Future investments
Capitec is using its strong financial performance over the past year to drive ambitious technology projects that will deliver even more value to its clients.
This includes an additional R174 million investment into technology and cloud services over the next six months.
“[This] isn’t just about scaling our business; it’s about unlocking value and creating opportunities for every client we serve,” said Fourie.
Fourie said the bank is also focused on leveraging technology to place the power of financial freedom in the hands of its clients.
“We’re not just banking lives, but enriching them.”