capitec bank

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Resources and capabilities of capitec bank:
1. What resources and capabilities made Capitec successful?

Capabilities- The individuals who came together to start Capitec came from a strong financial and micro-lending background; they had a very good understanding of the banking systems. They started this business well equipped.

Resources- Capitec was originally capitalized with R350 million was worth R2.2 billion and the results which were released in September 2006 showed a 23% return on equity, its profitability increased by 71%, and the bank itself had grown by almost 50%. Their business model was built on 4 pillars, Accessibility, Affordability, Simplicity and Personal Service.
They used less space, and resources for example
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As long as they can obtain their money without being charged large amounts, they are content. Capitec has strong competitive advantage in this respect as it offers a simplified and focused product, which benefits its target market. The big four for example have a range of products with complex terms and conditions.

o Personal Service: Every client must be made to feel important. Staff must be able to connect with their clients and understand their needs. In line with this and to increase its competitive advantage within the industry Capitec “recruited staff from the areas surrounding its branches and trained them in the required skills.” (Townsend and Mosala, 2006).

o Technology: In a technology driven world, it is important that banks in the industry ‘move with the time’. With respect to the big four, these banks have now introduced internet and cell phone banking as well as banking from the ATM; making the industry highly competitive. This technology aims to make banking for the client simple and accessible from anywhere. This new technology is aimed, once again, at the medium to high-income earning clients, who have access to these technologies.

Capitec approached technology driven services to the low-income earners in a different way (Haladjian, 2006).

➢ Paperless and cashless branches.

➢ Making use of
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