Capitec expands into emerging markets with AvaFin and fintech
Against the backdrop of sluggish growth in South Africa, local financial institutions are expanding into other regions of Africa and emerging markets with some of the world’s fastest growth rates.
Capitec, South Africa’s largest bank by customer base with more than 25 million clients, has also announced such plans.
In an interview with BusinessTech, Capitec Group CEO Gerrie (Graham) Lee said the bank has a long-term goal to become an international brand and enter new markets. Lee, who was promoted in July from CEO of the retail bank to CEO of the group, has extensive international experience, having worked in Zimbabwe, Nigeria, the UK, and Australia.
Capitec already has successful overseas ventures. The bank owns AvaFin, a credit provider operating in Mexico, Poland, Spain, the Czech Republic, and Latvia. Capitec increased its stake in AvaFin from 40% to over 95% in 2024. AvaFin now serves 250,000 customers, with €303 million in loans issued — up 94% compared to the four months ending August 31, 2024.
Despite AvaFin’s solid growth, Lee noted that the business remains small. International operations contributed 121 million rand to Capitec Group’s core profit — just 2% of total group revenue.
Focus on five strategic areas
According to Lee, expansion plans are still at an early stage, and the group has yet to decide on new target markets. However, in the short to medium term, Capitec will focus on five key areas: retail banking, fintech (including add-on services + Capitec), insurance, business banking, and AvaFin.
Currently, Capitec is scaling up its business banking division, Capitec Connect, which already boasts over 1 million accounts.
The bank also recently assumed full responsibility for underwriting its life insurance business, which also offers funeral cover.
Lee emphasized that Capitec will continue expanding its branch network across South Africa. While many banks in the country are cutting back on physical branches to prioritize digital operations, Lee stressed that physical presence is crucial to growing digital adoption.
Many customers who visit branches later start using the Capitec mobile app, which has 14 million users, making it the largest in Africa.
As we wrote, Just Eat Takeaway joins Prosus ecosystem after R83 billion buyout
Latest South Africa News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
