High Tyme: SA banking sector set for shakeup
Capitec's rise comes with its own demons
New, digitalised kids on the block will test its new dominance
For some of South Africa's centuries-old banking giants, the rise of Capitec since the turn of the century has challenged their dominance of the retail sector and taken most by surprise. Its client base of more than 9 million is larger than that of Old Mutual-owned lender, Nedbank, which was founded in the late 19th century. In a matter of just 15 years Capitec has proved to be a disruptor, displacing some of the more established market-leading firms. Since its 2002 listing, its shares have gained more than 52000%, outdoing Apple, the world's most valuable company with its paltry 9000% plus rise. But Capitec will in the months to come face similar demons of incumbency that the legacy banks had to deal with. The imminent launches of Discovery Bank and TymeDigital by Commonwealth Bank South Africa is expected to bring even more nimble rivals with even lower overhead costs, in which the Stellenbosch-based lender prides itself.One of the country's telecommunications giants also has its ...
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