Latest news with #Capitec
Daily Maverick
21 hours ago
- Business
- Daily Maverick
Sanlam merger to test TymeBank's no predatory lending promise
As the Competition Tribunal approval clears the way for TymeBank's acquisition of SanlamTyme JVCo and the SPL loan book, CEO Karl Westvig's commitment to fair lending faces its biggest test yet. The last time TymeBank CEO Karl Westvig spoke to Daily Maverick, he made bold promises about the digital bank's approach to loan books. 'The mission has always been to be able to profitably bank an entry-level customer… And it's not through the cross sell. It's through core banking,' he insisted. This is banking philosophy 101 from someone who clearly reads the right textbooks, but the market has a way of testing such noble intentions. TymeBank is paying R31.5-million for the 50% JVCo stake, plus approximately R400-million for half of Sanlam's loan book, plus another R320-million for a reference share entitling it to half of the credit life insurance profits from the JVCo loan book. That's a R750 million bet on an expanded lending business for a bank that has built its reputation on being different. 'These are some of the most abused people in the world,' Westvig acknowledged when previously discussing his predominantly low-income customer base. It's rare blunt honesty from a banking executive about the vulnerable position of South Africa's unbanked and underbanked population. Walking in Capitec's shadow Westvig was quick to draw a comparison with the titan of Techno Park that lords over SA's banking sector. 'Capitec fundamentally was a lending business… We've built our business as a transaction-led and savings-led bank.' It was a fair point, but also slightly disingenuous. Capitec's lending-first approach has made it one of South Africa's most profitable banks, particularly among lower-income customers. TymeBank's transaction and savings model might sound more palatable, but profitability in banking, especially when serving entry-level customers, typically requires some form of credit extension. Which brings us to the elephant in the room: this SanlamTyme acquisition is precisely about getting into lending in a bigger way. The question becomes whether TymeBank can maintain its 'fair and reasonable and competitive' lending promise while dealing with the realities of default rates and collection challenges that come with unsecured lending to financially vulnerable customers. Playing the loan game Here's the challenge: TymeBank is inheriting an existing loan book from Sanlam Personal Loans. The collection practices, interest rates, and terms of these existing loans were set by Sanlam, not TymeBank. How the digital bank handles this transition, particularly any customers who may be struggling with repayments, will be the first real test of Westvig's non-predatory commitment. The broader South African lending market is notorious for aggressive collection practices, astronomical interest rates on unsecured loans, and terms that can trap borrowers in cycles of debt. TymeBank's entry into this space, regardless of good intentions, puts it in direct competition with established players who have built profitable businesses on precisely the practices Westvig claims to oppose. What this means for you Expect TymeBank to launch more personal loan options soon, but without the exploitative hooks. If you've been excluded from formal credit before, this deal could open the door. For South Africans tired of tiered fees and opaque charges, TymeBank just got a lot more powerful. The numbers will tell the story The transaction's longstop date is 31 March 2026, with Sanlam planning to reinvest the proceeds into its broader growth strategy. That gives TymeBank roughly 18 months to prove that its approach can work at scale in the lending business. The success of this venture will ultimately be measured not by Westvig's well-intentioned statements about financial inclusion and fair lending, but by TymeBank's loan loss provisions, default rates and, most importantly, customer complaints about collection practices in the quarters ahead. If TymeBank can indeed provide competitive, fair lending to South Africa's underbanked population while maintaining profitability, it would represent a genuine breakthrough in financial inclusion. But the graveyard of financial services is littered with good intentions that couldn't survive market realities. DM
The South African
2 days ago
- Business
- The South African
Four major South African banks shut ATMs
The era of cash withdrawals at the corner ATM is quickly fading, as four of South Africa's biggest banks – Standard Bank, FNB, Nedbank and Absa – significantly reduce their ATM footprints in favour of digital banking services. Over the past five years, these banks have collectively shut down 8 516 ATMs across the country, marking a major shift toward cashless banking. The move comes as more South Africans embrace digital payments, driven by convenience, security, and the growing costs of maintaining physical cash infrastructure. Standard Bank led the reductions, cutting its ATM total from 9 321 in 2019 to just 5 562 by the end of 2024 – a drop of 3 759 machines. In contrast, Capitec is expanding its ATM network – adding 3 787 machines over the same period. The bank says it remains committed to offering affordable and accessible cash services, even while digital adoption accelerates. 'We are actively increasing our branch and ATM footprint while our competitors are scaling back,' Capitec said in a statement. Capitec's strategy reflects the reality that, despite a strong digital shift, a significant portion of the population still relies on cash, particularly in underbanked or rural areas. A recent survey by Discovery Bank and Visa shows that 67% of South African consumers now use cash only a few times a month or not at all, highlighting the scale of digital transformation in financial behaviour. This aligns with broader trends in e-commerce, mobile payments, and banking app usage, which have surged in recent years – further accelerated by the pandemic and ongoing innovations in fintech. While the banks acknowledge safety concerns and the logistical challenges of handling cash, Capitec says it will continue to support cash access 'for as long as it's needed.' Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Citizen
2 days ago
- The Citizen
Police chase follows armed robbery at Hazyview ATM
A man was robbed of R7 200 by two armed suspects while withdrawing cash from an ATM at Hazyview Junction Mall in Mpumalanga on Tuesday night. Lowvelder reports that, according to Mpumalanga police spokesperson Lieutenant Colonel Jabu Ndubane, the incident occurred at around 21:45. The victim was at a Capitec ATM when two men appeared and pointed a firearm at him. 'They took the R2 200 he had in his hands and then forced him to withdraw another R5 000 before letting him go,' says Ndubane. The man alerted security officers on site. As they responded, the suspects opened fire, wounding one of the guards in the leg. The officers returned fire, injuring one of the suspects, but both men fled the scene in a silver Honda Ballade heading towards the R538. When Hazyview police and security teams pursued the suspects, their vehicle lost control and veered into a ditch near Numbi Park. One suspect managed to flee, but the injured man was cornered and arrested. He was taken to hospital in critical condition. Inside the vehicle, police found an unlicensed firearm, nine live rounds of ammunition and a magazine. Ndubane says the suspect is facing charges of attempted murder, robbery and possession of an unlicensed firearm. Preliminary investigations revealed that the car had been hijacked in Hillbrow in July, and the firearm was reported stolen in Akasia, Pretoria, in May 2024. The investigation continues. Police have not confirmed whether the stolen cash has been recovered. Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. Read original story on
The Citizen
2 days ago
- The Citizen
Police chase follows R7.2k ATM robbery at Hazyview mall
A man was robbed of R7 200 by two armed suspects while withdrawing cash from an ATM at Hazyview Junction Mall on Tuesday night (August 5). According to Mpumalanga police spokesperson Lieutenant Colonel Jabu Ndubane, the incident occurred at around 21:45. The victim was at a Capitec ATM when two men appeared and pointed a firearm at him. ALSO READ: Two arrested for kidnapping and robbery of German tourist in Graskop 'They took the R2 200 he had in his hands and then forced him to withdraw another R5 000 before letting him go,' said Ndubane. The man alerted security officers on site. As they responded, the suspects opened fire, wounding one of the guards in the leg. The officers returned fire, injuring one of the suspects, but both men fled the scene in a silver Honda Ballade heading towards the R538. When Hazyview police and security teams pursued the suspects, their vehicle lost control and veered into a ditch near Numbi Park. One suspect managed to flee, but the injured man was cornered and arrested. He was taken to hospital in critical condition. ALSO READ: Business robbery suspect arrested in Thulamahashe Inside the vehicle, police found an unlicensed firearm, nine live rounds of ammunition and a magazine. Ndubane said the suspect is facing charges of attempted murder, robbery and possession of an unlicensed firearm. Preliminary investigations revealed that the car had been hijacked in Hillbrow in July, and the firearm was reported stolen in Akasia, Pretoria, in May 2024. The investigation continues. Police have not confirmed whether the stolen cash has been recovered.
The Citizen
3 days ago
- Business
- The Citizen
UPDATE: Capitec settles claim after KwaDukuza coffin protest
The family who made headlines last week after bringing a coffin into Capitec Bank at the KwaDukuza Mall confirmed resolution of their case. A funeral for their loved one happened over the weekend. The family had resorted to the coffin protest after alleging that a funeral insurance pay out delay left them with little recourse. After shocked onlookers shared the story, it went viral on social media and generated lively debate. Capitec has since acknowledged the incident. 'We've met with the family and, following normal processes, have settled the claim,' said Gaole Bogatsu, senior account manager at Capitec. 'Capitec takes such matters seriously and remains committed to supporting our clients with dignity.' Stay in the loop with The North Coast Courier on Facebook, X, Instagram & YouTube for the latest news. Mobile users can join our WhatsApp Broadcast Service here, or if you're on desktop, scan the QR code below.
