Capitec Bank has announced a major change as far as customer satisfaction is concerned and partnered with telecoms operator, Cell C.
The bank, Capitec has ventured into the mobile phone business with the launch of its virtual mobile network that promises customers cheaper data that doesn’t expire.
As South Africa’s largest retail bank by customers, Capitec has launched a joint venture with Cell C as it aims to disrupt the prepaid mobile business that is currently dominated by large operators, such as MTN, Telkom and Vodacom.
Capitec’s rivals have also been looking to jump on the digital bandwagon and diversify their service offerings, and Standard Bank and FNB are also mobile virtual network operators, with SB Mobile and FNB Connect, respectively.
The bank’s CEO Gerrie Fourie says their customers have been complaining about the cost of data and the brand new service is expected to be a ‘game changer’ for prepaid voice, data, and SMS services.
“South Africans have been complaining about the cost of data. It’s expensive and complicated. Bundle pricing, off-peak and peak rates, and the fact that your data expired are all things that make no sense,” said Fourie.
“We’re changing this by giving our clients access to a mobile solution that is simpler to understand, much more affordable, and can be recharged easily on our digital channels.”
As a Mobile Virtual Network Operator (MVNO), the growing bank will offer cellular services without owning the network infrastructure and will rely on the Cell C network.
It is announced that Capitec Connect will offer customers 100 Megabytes at R4.50 or R45 per gigabyte, and the rates remain flat whether clients buy small or large quantities.
Capitec Connect says its data is on average 50% below the price consumers normally pay and the biggest advantage for the customers is that the data never expires if the SIM is used at least once in six months.
News24 has it that according to the Draft End-user and Subscriber Service Charter Amendment Regulations, the Independent Communications Authority of South Africa (Icasa) stated that data bundles must remain active for six months before they expire, excluding promotional packages.
The bank was launched in 2001 in South Africa and boasts a customer base of 18.1 million as of the end of February 2022 and clients can be able to buy SIM cards at Capitec branches.
Moreover, the financial institution’s core focus is the lower segment of the market and the bank has grown rapidly over since launching 22 years ago.
Main Image: Capitec Bank/ITNewsAfrica
