Guiding consumers since 2009

The banks they are a changing

By Staff Writer
The banks they are a changing

The global financial crisis has led a sea change in opinion on what is the right way forward.

While the revolutionaries are being infiltrated on the streets, an evolutionary pressure has definitely developed that will usher in the real changes that will take place in the banking system.

Here in South Africa we don't have riots on the street and many folk sit complacently with their bank accounts and the multifarious charges that they attract.

But the banks they are a changing.

The Mzansi account initiative was introduced by the government to provide a low cost account that worked with modern electronic methods.

Enabling the low waged and the unbanked to become part of the formal banking system. The Mzansi account offers a basic bank account and a standard set of charges that is easy to use and to understand.

According to news reports since the inception of the Mzansi account scheme more than six million South Africans have opened one of these accounts.

iAfrica reported on this and noted the comments of deputy Finance Minister Nhlanhla Nene.

He said 'This vindicates our position that historically disadvantaged members of our population can be harnessed into a potentially viable market'.

The middle and top end of the market has already been harnessed into the banking system and this bottom end represents the last of the fresh market share.

The Mzansi account is carried by law by the large banks.

However there is a new entrant in the market. Capitec Bank 

Previously perceived as a micro lender and only for the bottom end of the market, Capitec bank is one of the few banks in the world that is not only expanding but making a healthy profit also.

The Times reports that 'while US motor bosses were flying in private jets to pick up their bailout packages, executives and staff at a lesser known South African company, Capitec Bank, were flying economy'.

This kind of attitude is a big factor in Capitec increasing their headline earnings by 41 percent in the last financial year. They have gained 464 000 new clients in the last year and are opening branches constantly, about one every ten days is expected this year.

The fact of the matter is that the Capitec Global One account is probably the best value for money account on the market at the moment. They have a flat and easy to understand charge structure and pay interest on all positive balances.

They have suffered under a perception that they are only for the low end of the market but are starting to make inroads in the upper end of the market.

Capitec fully expects to make the SA banking sector hold the 'Big 5' banks with them joining the other giants of the sector.

If Capitec keeps up its strategy of targeted products that really are the best of their class they can turn their expectations into reality. Register with Justmoney to stay up to date with our product reviews.

 

Recent Articles

Featured How are you taxed on your retrenchment package?

Unemployment is one of the biggest problems in South Africa. The emergence of the Covid-19 pandemic has exacerbated the situation with a lot of companies retrenching their employees.  When retrenched, you’ll receive a retrenchment package, but do you know how much tax you’re liable for?

Car repossessed – don’t be taken for a ride

When the country is facing an economic downturn, chances are your finances will feel the pinch. This can lead you to make bad financial decisions such as skipping your vehicle payments. But every decision has consequences and if you don’t pay your instalment, the bank will repossess your car. But what can you do when this happens?

 

Why you should consider gap cover

Your medical aid should protect you from incurring large medical bills when you’re sick. But what if your plan doesn’t cover the full cost of your medical expenses? We got in touch with insurance experts to find out whether gap cover is worth having.

Debt relief - What is your bank offering?

Going through a financial crisis is stressful whether it be as a result of losing your job, being short-paid, having to fork out towards an emergency payment, or finding yourself in the midst of a global pandemic. This is especially taxing if you have a debt to service. It is against this backdrop that banks are increasingly offering payment holidays. Justmoney looks at the various debt relief options available to you from the big five banks.

Deals

Premier Hotel and Resorts Special For Senior Citizens

Price: Available on request
When: Daily
Where: Nationwide

The President hotel 10% discount for locals

Price: Available on request
When: Until 31 October 2020
Where: Cape Town

Get 40% off when you book your stay at Colosseum Hotel

Price: Available on request
When: Until 13 December
Where: Cape Town


Latest Guide

Guide to debt rehabilitation solutions