COMPANY PROFILE -Capitec Bank
Business Sector :Banking & Finance
Operating Geography :South Africa, Africa
About Capitec Bank :
Capitec Bank is a South African retail bank that specialises in banking services and offers individuals savings, transactions, and unsecured lending products. The firm is headquartered in Stellenbosch, South Africa and it was established on 1 March 2001. The Company's retail banking division distributes Global One, a retail bank product that allows customers to transact, save, and borrow. Card machines, workplace banking, pay transfers, and financial skills are among the company's commercial offerings. It also offers financial management services. Capitec Bank Limited, the company's main subsidiary, is owned by the company (Capitec Bank). The company's Global One card is linked to each customer's transaction/savings account and provides them with a variety of options for accessing and transacting their money around the world. Card machines, online shopping, and phone/mail orders all accept the Global One card. Capitec announced a needs-based lending solution on November 24, 2021, that allows users to borrow up to R250,000 for education, medical expenditures, home improvements, or vehicles from some of the country's best firms at interest rates as low as prime.
Capitec Bank's USP lies in its being South Africa's leading digital bank, with over 8.6 million digital banking customers, as well as the world's third strongest banking brand. The mission statement of Capitec Bank reads, "An affordable, simplified banking solution would mean very little without excellent service. Our immediate focus is to build a relationship with you to better understand your needs and goals and to empower you to take control of your cash".
Capitec Bank Revenue :
Rand 24.98 billion - FY ending 28 February 2021 (y-o-y growth 1.6%)
Rand 24.59 billion - FY ending 29 February 2020
Competitive Analysis of Capitec Bank
The SWOT analysis for Capitec Bank is presented below in a matrix followed by the detailed analysis report:
Strengths | Weaknesses |
1. Robust digital banking system during pandemic
2. Diversification in portfolio by creation of Access Facility
3. Strong base with 800+ branches and 16.8 million retail clients
4. Strong Return on Assets (ROA) & Capital Adequacy Ratio (CAR)
| 1. Increasing debt review towards 0.5%, attributed to clients in government |
Opportunities | Threats |
1. Expansion into more cities in South Africa
2. Developing global approach due to strong performance
3. Tapping the informal stokvel market worth $3 billion annually
4. Acquiring Mercantile Bank to enter corporate banking market | 1. Faces competition from the BigFour banking companies in South Africa
2. Long-term uncertainty of the pandemic & July 2021 unrest
3. Inflation and higher repo rate in early 2022 |
On purchase the Capitec Bank SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
Detailed SWOT Analysis of Capitec Bank
Strength
1. Robust digital banking system during pandemic: Capitec Bank has increased its client base at a record 14% growth to 16.8 million as of August 2021, with 8.9 million of its customers banking digitally. Utilizing the circumstances of the pandemic forcing online transactions, it has created a strong foothold and threatens the hegemony of the BigFour banks in South Africa, namely, Standard Bank Group Ltd., Absa Group Ltd., FirstRand Ltd. and Nedbank Group Ltd. The percentage of digital payments out of net transaction income increased by 28.57% to 45% in May 2020, and has settled at 41% (August 2021). It was recently voted as South Africa’s Best Digital Bank in the SITEisfaction 2021 report. Its Digital Global One Experience allows a customer to create their bank account by authenticating in collaboration with the Ministry of Home Affairs, as well as providing a virtual debit card for transactions. Salient features of its digital banking system include personalized credit grants and a mobile banking application.
2. Diversification in portfolio by creation of Access Facility: While traditional term loans and credit card payments accounted for 41% and 27% of total credit disbursed respectively, Capitec’s recent creation of Access Facility accounted for 43% of total credit disbursed as of August 2021, a monumental growth of 146.3% from its launch in August 2020. A revolving line of credit with flexible repayment options and use-only interest rate payments, Access facility is priced from 12.15% with a lower Return on Equity (ROE) than term loans to lure quality sales and top-notch clients. Capitec ensures correct behaviour as less than 11% of clients settled their Term Loan with an Access Facility, with less than 27% of applications being approved. Daily risk management allows to track client behaviour with recently 13% of Access Facility limits being decreased in line with cash stress and risk monitoring.
The remaining section under "Strength" is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
This section is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
The PESTLE analysis for Capitec Bank is presented below in a table followed by the detailed analysis report.
Political | Economical |
1. July 2021 civil unrest causes infrastructure losses in Kwa-Zulu Natal
2. Uncertainty over upcoming local elections in November | 1. High unemployment & slow economic growth
2. High savings may prompt infrastructure investment by new government |
Social | Technological |
1. Poor education system may affect quality of services in future
2. Mounting socio-economic inequity threatens low-income client base | 1. Digital Global One Experience has helped tide over pandemic crunch
2. Combining retail experience with net banking |
Legal | Environmental |
1. SARB increasing the repo rate affects interest rates & credit extension
2. SARB introducing regulations over crypto-assets may affect transactions | 1. Increasing focus on ESG scores put Capitec at high risk
2. Building energy-efficient headquarters in line with green initiatives |
On purchase the Capitec Bank SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
Detailed Pestle Analysis of Capitec Bank
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
1. Poor education system & emigration may affect future service quality: South Africa has one of the most unequal schooling systems in the world, with only 14% of children attending university. Learning outcomes are poor as more than 75% nine-year old children cannot read for meaning. Despite spending a generous 6.4% of its GDP on education, the South African government is failing in human capital formation. This affects the service sector aggravated by the pandemic. Failure to create jobs for the under-skilled youth may accentuate emigration, already present in highly skilled communities, leaving a shortage in South African labour demand. Capitec is therefore actively hiring 300+ workers and upskilling its employees and investing in artificial intelligence (AI) and machine learning. However, failing education may result in poorer innovation and skillset of Capitec Bank in the future.
The remaining section under "Social" is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
This section is available only in the 'Complete Report' on purchase.
Major Brands :
- Capitec Bank
- Mercantile Bank
- Mercantile Payment Solutions Limited
On purchase the Capitec Bank SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
You may also be interested in other analyses of Capitec Bank:
-
Capitec Bank Porter's Five Forces Analysis |
|
-
Capitec Bank VRIO Analysis |
|
-
Capitec Bank Value Chain Analysis |
|
-
Capitec Bank Covid-19 Impact Analysis |
|
-
Capitec Bank BCG Analysis |
|
-
Capitec Bank Segmentation, Targeting and Positioning (STP) Analysis |
|
-
Capitec Bank Ansoff Matrix Analysis |
|
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Company Overview Report
This report is shared in order to give you an idea of what the complete Company Overview Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Competitor Analysis Report
This report is shared in order to give you an idea of what the complete Competitor Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Porter's Five Forces Analysis Report
This report is shared in order to give you an idea of what the complete Porter's Five Forces Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
VRIO Analysis Report
This report is shared in order to give you an idea of what the complete VRIO Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Value Chain Analysis Report
This report is shared in order to give you an idea of what the complete Value Chain Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Regulatory Outlook Report
This report is shared in order to give you an idea of what the complete Regulatory Outlook Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Risk Analysis Report
This report is shared in order to give you an idea of what the complete Risk Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Key Performance Indicators (KPI's) Report
This report is shared in order to give you an idea of what the complete Key Performance Indicators (KPI's) Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Environmental, Social, and Governance (ESG) Analysis Report
This report is shared in order to give you an idea of what the complete Environmental, Social, and Governance (ESG) Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
M&A Analysis Report
This report is shared in order to give you an idea of what the complete M&A Report and Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Subsidiaries, Partnerships and Collaborations Report
This report is shared in order to give you an idea of what the complete Subsidiaries, Partnerships and Collaborations Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Stakeholder Analysis Report
This report is shared in order to give you an idea of what the complete Stakeholder Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Technology Landscape and Outlook Report
This report is shared in order to give you an idea of what the complete Technology Landscape and Outlook Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Covid-19 Impact Analysis Report
This report is shared in order to give you an idea of what the complete Covid-19 Impact Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Key News and Events Report
This report is shared in order to give you an idea of what the complete Key News and Events Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
BCG Analysis Report
This report is shared in order to give you an idea of what the complete BCG Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Digital Marketing and Social Media Strategy Analysis Report
This report is shared in order to give you an idea of what the complete Digital Marketing and Social Media Strategy Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Segmentation, Targeting and Positioning (STP) Analysis Report
This report is shared in order to give you an idea of what the complete Segmentation, Targeting and Positioning (STP) Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Ansoff Matrix Analysis Report
This report is shared in order to give you an idea of what the complete Ansoff Matrix Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Check Out Analysis of Other Relevant Companies
References used in Capitec Bank SWOT & PESTLE Analysis Report
1. It’s Banking, Just Simpler | About Us | Capitec Bank - https://www.capitecbank.co.za/about-us/
2. Unaudited financial results for the 6 months ended 31 August 2021 - https://www.capitecbank.co.za/globalassets/pages/investor-relations/financial-results/2022/interim-results/cpihy22.pdf
3. We Can Help With Debt Relief | Good For Credit | Capitec Bank - https://www.capitecbank.co.za/bank-better-live-better/articles/good-for-credit/we-can-help-with-debt-relief/
4. Audited summary financial statements for the year ended 28 February 2021 - https://www.capitecbank.co.za/globalassets/pages/investor-relations/financial-results/2021/annual-report/audited-summary-financial-statements-2021-F.pdf
5. CPI.ZA | Capitec Bank Holdings Ltd. Financial Statements – WSJ - https://www.wsj.com/market-data/quotes/ZA/CPI/financials
The detailed complete set of references are available on request in the 'Complete report' on purchase.
How to Reference This Page?
You can use the following in your reference section in order to give credit to the source. For different referencing styles and detailed guidelines, please click here.
Capitec Bank SWOT and PESTLE Analysis - SWOT & PESTLE.COM
SWOT & PESTLE.com (2023). Capitec Bank SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/capitec-bank/ [Accessed 28 Nov, 2023].
In-text: (SWOT & PESTLE.com, 2023)
Copyrights and Disclaimer
Capitec Bank SWOT and PESTLE analysis has been conducted by Riti Bhattacharyya and reviewed by senior analysts from Barakaat Consulting.
Copyright of Capitec Bank SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.