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Capitec Bank, South Africa?s newest retail bank, opened its 400th branch on 26 February 2010 in Bloemfontein Waterfront. The nine-year-old banking group?s national expansion plan continues to gain momentum, even during the recent recessionary market conditions, and the bank now boasts over 2-million active clients.

Riaan Stassen, Capitec Bank?s CEO, attributed this sustained success largely to the bank?s innovative low-cost business model, which ? through its simplified solution to money management ? affords clients the most competitive bank fees and savings interest rates in South Africa.

"Capitec Bank?s simplified solution to money management had found great appeal in the young market in need of essential banking," says Stassen.

Appeal growing across all income groups

"Our offering appeals to the cost-conscious consumer looking for value, accessibility and easy to use banking products. Particularly in the light of the recent recession and relatively slow economic recovery, our appeal has grown across all income groups."

Capitec Bank entered the retail banking market in 2001, initially targeting lower-income South Africans. Today, however, its unique positioning and paperless banking structure, which drives down costs, is also favoured by higher-income clientele.

50 extra branches opening throughout SA

Heading into its next financial year on 1 March 2010, Capitec Bank will continue its expansion plans by opening over 50 branches throughout South Africa.

"Benchmarked against other national retailers like Woolworths, which has in the order of 410 stores or Edgars with over 150, our national footprint of 400 branches is significant, given our age, and is growing in line with the bank?s take-up among all client groups," concludes Stassen.