Management accounting strategy Initial And Surname

Management accounting strategy
Initial And Surname: B Ramaisa
center850009088120October 16, 2018
University of Johannesburg 1000000October 16, 2018
University of Johannesburg Student Number: 217028360

Capitec Bank Holdings Limited is a South African retail bank established on the 1st of March 2001 through small various steps starting with acquiring small micro lenders in Johannesburg, 17 years ago, by Jannie Mouton, Micheal Le Roux and Riaan Stassen.

The concept of Capitec Bank came about when three Stellenbosch based businesmen decided to solely focus on servicing the low income earners of South Africa. This service is only exclusive to individuals and small businesses, providing them with a diverse affordable banking facilities. This idea led to the restructuring and incorporation of the business Keynes Rational into Business Bank Limited on the 1st of March 2001. The name has then been changed to Capitec Bank Holdings Limited sin February 2002.

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Capitec has three divisions all responsible for different business activities as carried out by the bank. FinAid focuses on Living Standard Measure (LSM) 3 to 5. These are individuals earning an average annual income of about R12 432 to R25 344 and are unable to secure a bank loan. The loan has a 30 days credit term and the amount seldom exceeds 2 500 and with an average of R600. The interest rate ranging from 21.5% to 30% per month. Capitec division focus on the LSM 4 to 7 and the capitec CBS provides commercial, unsecure loans on the stock required for running Small, Medium and Micro Enterprises (SMME’s).
The bank has over 800 retail branches nationwide and over 3400 Auto Teller Machines. With over 6.2 million clients and about 120 000 clients opening new accounts, Capitec is the second biggest bank in the Republic. When it comes to client indulgence as per a survey conducted by South African customer satisfaction index (SAcsi) in 2015, the bank topped the list scoring 82.2 point. It has also emerged as the best bank in the world by International banking advisory group lafferty in its inaugural bank quality rankings.

Capitec interaction with its clients are face-to-face, paperless, cash less and card based (Haladjien, 2006). Instilling confidence in their clients and making sure that’s their clients are satisfied at all times, thus saving time and money. They also make use of fingerprint technology and cameras to identify their clients which lessens fraud and quickens the response time (Van Themaat et el, 2003)
Availability of service
Capitec makes its services more accessible to their clients by having longer business hours rather than the traditional shorter hours.
Bank Weekdays Saturdays Sundays
Capitec 8am to 5pm sometimes opens for longer to cater clients’ needs 8am to 1pm 10am to 2pm
Competitors (ABSA) Close at around 3:30 or 4pm Close at 11 am Most branches not open
Capitec understands that most of its clients are working during the day and therefore can only go to the bank after working hours.
Capitec has excessive number of branches.

Their branches are relatively small compared to their competitor’s (ABSA). It is Capitecs strategy to increase the number of branches, they rather have many branches in one area than have one big branch in one area. This makes Capitec more accessible and encourages the community to open bank accounts and to use the services provided by the bank. And this branches are located in places closer to their prime targets, the low income earners, usually near taxi ranks and bus stations.
Capitec allows withdrawals at retail outlets.

They have collaborated with a number of retail stores such as PEP, Checkers, Shoprite and Pick ‘n’ Pay and their clients can withdraw in these stores nationwide. This makes the services provided by Capitec easily accessible and convenient. Since these stores are closer to the low income earners, it means that if the Capitec branches are a bit far or closed, the customers will able be able to access their money. ABSA only collaborated with PEP making Capitec the better choice of banking.
Capitecs strategic objectives are as follows:
Provide unique service
Enhance the product offer
Grow transaction income
Manage the cost of credit to clients
Responsible management of regulatory and compliance risk

Capitec Strategy to success. (2016, Mar 09). Retrieved from,G. 2003. Innovative Approaches to Delivering Microfinance Services: The Case of Capitec Bank. Available: file:///C:/Users/General/Downloads/mfg-en-case-study-innovative-approaches-to-delivering-microfinance-services-the-case-of-capitec-bank-aug-2003.pdf. (Accessed: 16 October 2018)
Guest thought Leader.2017. A Look At Capitec And Checkers’ Surprising Business Strategy. SME South Africa. Available: (accessed: 16 October 2018)
Wikipedia. Capitec Bank. Available: (Accessed: 16 October 2018)