In a first for the local banking industry, Capitec Bank - the only South African brand to be included in the Credit Suisse 27 Great Brands of Tomorrow report - announced in March that they would offer free cash withdrawals from participating retailers for three months.

This bold initiative was part of the bank's commitment to foster a change in South Africans' banking behaviour by offering clients more convenient and free access to their money.

The offer of free cash withdrawals at selected retailers has now been extended until the end of December 2010. Capitec clients can draw money for free at Pep, Pick n Pay and Shoprite Checkers.

"Against the backdrop of the recession, consumers have been under pressure to lower personal and household expenses," said Carl Fischer, Capitec Bank's Executive: Marketing and Corporate Affairs.

"Our solution is therefore two-fold: Firstly, partner with well-known retailers, such as Pick n Pay and Shoprite Checkers that have a widespread national footprint as this will offer greater access to clients. Secondly, encourage them to draw cash from these retailers by offering free withdrawals. "

The campaign is one of our initiatives to encourage clients to change their banking
behaviour and view till points as the new ATMs thereby cutting the costs of accessing their money.

Drawing cash at till points is not only less costly, but is also safer, as ATMs are a common target for fraudsters, card skimmers and muggers.

Capitec Bank, with its low-cost model based on technology, is no newcomer to affordable banking: Its Global One facility, a single solution to daily money management, offers clients free balance enquiries and debit card purchases. In addition, the bank offers among the most competitive banking fees for transactions, cash deposits and withdrawals in the country.

Fischer suggests that South Africans can do more to reduce bank costs and be more in control of their bank balances. "It's common knowledge that using other banks' ATMs costs a lot more than using your own."

But, he said that few South Africans have fully grasped the cost-saving benefits of withdrawing cash from their preferred retailers' tills as "it is not only safer, it also saves time and money".

And it is not just the consumer who saves. Retailers partnering this offer do so too.

Fischer explains, "The high costs of security and handling cash, are additional drivers behind this initiative.

"This collaborations with retailers, which allows them to channel their cash overflows back to the consumer without facing the high cash-deposit fees when doing daily cash-ups, is a win-win situation."

To access their money, clients can withdrawal cash for free when making a purchase, except at Pick n Pick where a purchase is not required to make a cash withdrawal.

"Up until now clients have enjoyed unlimited cash withdrawals at our retail partners for as little as R1. Now, with the ‘free' promotion in place, we hope to encourage more South Africans to make use of this service and enjoy the saving benefits both now and in the long-term," concludes Fischer.