Capitec mobile app is driven by a unique feature

Capitec Bank’s new mobile app has registered 90500 activations since launch in July.

The high take up pace is attributed to a reach that is broader than smartphones penetration in South Africa. There is also a uniquely South African security feature which links the banking application to the phone and not the SIM card thus avoiding SIM card fraud.

As part of its financial results announcement for the six months ended August Capitec said “We released the Capitec mobile app in July 2014. Client acceptance of the app exceeded expectations with 90 500 activations in a month and a half.”

The bank added that “Our app can be used on all phones with an internet connection, which includes older phone models (a significant number of South Africans do not have smart phones).”

The safety of our clients’ money is essential so the app was designed to prevent fraud through SIM-swaps. This safety feature is unique in the South African market, as it links the client to the phone and not to the SIM card.”

Capitec’s financial results also came to calm nerves around the health of the bank. Concerns rose after the near collapse of African Bank which was saved by the state. Capitec has insisted that its business model is different to that of African Bank in emphasising deposits.

Capitec said it remains in a healthy state that exceeds minimum requirements like reserves.

The bank said it experienced accelerated growth in the number of active clients during the past six months. “Active client numbers grew by 418 000 to 5.8 million since February 2014, driving the increase in net transaction fee income.” The growth in the number of clients in the past six-months exceeded the growth in the two prior six-month periods, said the group.

We consider clients who make regular deposits (mostly their salaries) into their Capitec Bank accounts a key client category. These clients amounted to 2.5 million at August 2014 (August 2013: 1.9 million, February 2014: 2.2 million).”

The group added that Capitec Bank’s ‘Global One’ remains the most cost-effective account as per Solidarity’s September 2014 report on bank charges.

Leave a Reply

Your email address will not be published. Required fields are marked *