‘Free’ campaign launched to encourage a shift in banking behaviour

Cape Town, 4 May, 2010: 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 today that for the next three months as of May 1, 2010, all cash withdrawals from participating retailers will be free. This bold initiative is 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.

Carl Fischer, Capitec Bank’s Executive: Marketing and Corporate Affairs, says: “Against the backdrop of the recession, consumers have been under pressure to lower personal and household expenses. 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 for the months of May, June and July. This three-month 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. The 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.”

Participating retailers include Pick n Pay, Checkers, Shoprite, Pep Stores, Boxer and selected Spar stores. 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’ three-month 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.

For more information on the ‘free withdrawal’ promotion or Capitec Bank visit www.capitecbank.co.za.

ENDS

About Capitec Bank
Capitec Bank (JSE: CPI) is South Africa’s fastest growing retail bank. With  more than 2.1 million  active clients, R1.7 billion in equity and R6.9 billion in assets (excluding cash) as of February 2010, Capitec Bank offers affordable, convenient and simplified banking with personal service. Using innovative technology to drive down costs, increase accessibility and simplify client interactions, Capitec Bank’s Global One facility offers a range of transacting, saving and credit options accessed in realtime using paperless processes and the country’s first in-branch biometric client identification system. In March 2010, Credit Suisse named Capitec Bank one the ‘27 Great Brands of Tomorrow’, the only South African brand to be named in the international report. For further information on Capitec Bank visit www.capitecbank.co.za. Read the Capitec Bank email disclaimer at http://www.capitecbank.co.za/emailDisclaimer.asp