Capitec Announces Home Loan Offer at Annual General Meeting

Capitec Bank, South Africa’s fastest growing retail bank for individuals, announced at its AGM that the bank will launch a home loan offering in answer to market demand.

Capitec Bank has concluded a co-operation agreement with SA Home Loans to pilot the introduction of home loans throughout branches in Gauteng for a period and thereafter in the rest of the country, where ever SA Home Loans has the necessary support infrastructure.

Capitec CEO, Gerrie Fourie announced: “We recently embarked on the #AskWhy Campaign and the feedback from our customers was that they wanted the “Capitec simplicity approach” to home loans. In response to this, we entered into an agreement with SA Home Loans to deliver home loans to the market in the simple, efficient way that both our client service models are well-known for”.

“The offer will be piloted in 160 Capitec branches in Gauteng from the 7th of July and will be rolled out to the rest of the country in due course. Capitec’s in-branch consultants will assist with the application and initial approval process where after customers will be contacted by a dedicated SA Home Loans consultant within one business day to guide them through their full evaluation and registration process.” Fourie said.

Fourie added that Capitec Bank signed the cooperation agreement with SA Home Loans because the company had a good “cultural fit” with Capitec. Founded in 1999, SA Home Loans is a fairly young company that takes a fresh approach in the marketplace by offering a non-traditional, quick, easy, transparent and personalised service. “The core company values and customer focus of SA Home Loans aligns with that of Capitec Bank,” said Fourie.

“The fit between our Companies creates a powerful platform to broaden consumers’ access to home finance,” added Kevin Penwarden, SA Home Loans CEO.“Both companies are 21st century entrepreneurial success stories, both founded with a similar ethos: to offer SA consumers a greater choice of quality, differentiated financial services.As the smaller niche player, SA Home Loans brings a client-focused, single product expertise, whilst benefiting from Capitec’s extensive and rapidly growing distribution reach and client base”.

The product will be the same as that which is currently offered by SA Home Loans, and will be available to new bond applicants as well as Capitec clients with existing home loans who would like to benefit from switching their bond to SA Home Loans. “Whilst this boosts our product offering and brings us closer to becoming a one stop solution for clients, the agreement expands distribution for SA Home Loans through most of our over 630 branches,” Fourie said.

Fourie said the home loan offering was one of a number of innovative, simple and transparent solutions Capitec were currently developing to meet customer needs, as part of the bank’s journey towards offering a full banking product range for individuals.

Fourie also announced a partnership with Spark ATM Systems, South Africa’s premier independent ATM deployer, to roll out freestanding Capitec-branded ATMs in retail spaces across South Africa (see ATM locator here). Withdrawal fees will be the same as other Capitec ATMs, at R4,60 per withdrawal irrespective of the amount withdrawn.

Fourie said ATM and branch numbers were being expanded as this received the most queries on the Capitec Facebook page. “This year customers will see a big increase and we’ve already increased our ATMs by 364 and our branches by 69 in the past year. Many of our branches got a makeover, and we moved more of our ATMs to places where customers shop, such as malls, which are also safer. We have also increased the numbers of till points where customers can draw cash to 4 374, while keeping the cost of withdrawals low at R1.05. We are however still encouraging our customers to swipe for free or do paperless banking via our remote banking options like Internet Banking or Mobile Banking.”