Bloomberg/Waldo Swiegers

Technology

South Africa's Capitec Bank cuts transactions fees to stay competitive

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Over the last few months, the lender ingaurated three digital banks promising fees as low as zero, a move that is set to trigger a price war in the country, where more than 80 per cent of the population already have bank accounts.

Sunday 31, March 2019 BY KUDAKWASHE MUZORIWA

The Chief Executive officer of Capitec Bank said that the bank will take hit of at least $25 million from cutting transaction fees in 2019, as the South African lender fights to defend market share from digital newcomers.

In 2019, the bank expects to give between ZAR 360 to 380 million back in price cuts.

Gerrie Fourie, Capitec Bank’s Chief Executive, said that the bank would stand the challenge thanks to its strong brand, product offering as well as extensive branch network and prices, which were reduced at the start of this month.

The bank was launched in 2001 as a specialist in small personal loans, however Capitec Bank is now positioning itself as a fully-fledged bank with no-frills savings, insurance and credit card accounts, reported Reuters.

TAGS : Capitec Bank, Digital drive

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