Why a Decade of Digital Banking Is Only the Start of Capitec’s App Journey

LinkedIn Article By Ravindren Govender , Head of Capitec App at Capitec

In June 2014, Capitec , South Africa’s leading digital bank, launched its banking app with a clear vision – to provide clients with a digital experience for their basic banking needs. At that time, the app offered limited functionality. Fast forward to today, and Capitec is celebrating ten years of developing the app from its humble beginnings as a simple banking tool to becoming a digital wallet boasting 40 products that have revolutionised how nearly 12 million South Africans manage their finances.

How Capitec’s app became Mzansi’s digital wallet

The Capitec app’s evolution continues to be guided by its clients’ needs. We've transitioned from offering simple banking functions to providing a comprehensive suite of financial services, effectively transforming our app into a digital wallet offering features such as:

1.?????? Value-added services (VAS): Clients can purchase airtime, data, electricity, and retail vouchers – making our app a one-stop shop for daily financial needs.

2.?????? Biometrics: Our app leverages advanced biometric authentication methods, including fingerprint and facial recognition. This feature enhances security and provides a seamless, password-free login experience.

3.?????? 'Track your spend': This feature allows clients to access detailed insights into their spending habits, categorising expenses and helping them budget effectively. It's like having a personal financial advisor in your pocket.

4.?????? Scan to pay: We've simplified payments even further with a QR code payment feature allowing users to make payments by scanning a QR code online or at a physical store.

5.?????? License disk renewal: Clients can renew their vehicles’ licenses and have the disk delivered to a chosen address.

These features, among others, have transformed our app into a one-stop digital financial hub. We've bridged the gap between traditional branch banking and digital services, allowing our clients to perform virtually any banking function from the comfort of their homes or from just about anywhere in the world they have internet connectivity.

Tapping into our clients’ evolving needs

The evolution of our app mirrors the journey of our clients. Mobile internet banking was a novel concept for many South Africans when we started. We, therefore, had to balance introducing new features with educating our users on digital banking.

Today, our users are tech-savvy digital citizens, particularly the younger generations. This shift has allowed us to leverage their digital skills and offer more advanced features while maintaining our commitment to simplicity.

Driving financial inclusion

Capitec believes in banking for all. We try and support older devices to ensure that we don’t create barriers to digital banking for people who don’t have the latest and greatest devices.We've also made the app free by covering data costs to promote inclusivity.

Moreover, we've taken on the responsibility of educating our clients, not just on using our app, but on becoming better banking citizens overall. This commitment to financial education is a core part of our mission to drive financial inclusion in South Africa.

Security and trust remain Capitec’s priority

Capitec’s investment in scaling its banking app now sees nearly 12 million clients who use the app at least once every month, approximately 15% of South Africa's population. Maintaining security and trust has been paramount. We've invested heavily in fraud prevention technology and system stability to ensure clients feel safe and can rely on our services.

Our commitment to security goes beyond just protecting transactions. We've pioneered biometric authentication, including our innovative 'selfie' feature for client onboarding. This function enhances security and simplifies the user experience. We're constantly evolving our fraud detection systems, leveraging advanced technologies like machine learning to stay ahead of potential threats.

Moreover, we've modernised our software systems to maintain stability and security as we grow. Capitec believes it builds trust through security and reliability, and we're dedicated to excelling in both areas.

The future of Mzansi’s app-based banking has only just begun

Looking ahead, we're excited about the potential of artificial intelligence and digital assistants in banking. We envision a future where a South African can complete transactions using voice commands or proactively receive personalised financial advice from your app. These are the kinds of innovations we're exploring as we continue to evolve our digital offerings.

As we mark this ten-year milestone, we're proud of how far we've come, but we're even more excited about the future. With nearly 12 million clients embracing digital banking through our app, we believe we've only just begun to scratch the surface of what's possible.

We remain committed to our core principles of simplicity and trust as we continue to innovate and expand our digital services. Here's to the next decade of digital banking evolution at Capitec.