At a Glance
- Capitec launches unsecured SMME loans, targeting cash flow over collateral for business growth.
- Digital banking fuels 22% loan growth, 15% client surge at Capitec Business in FY2025.
- POS device sales, low merchant fees drive Capitec’s rapid fintech and SME expansion.
Capitec Bank is preparing to roll out a new unsecured loan product tailored for small, medium, and micro enterprises (SMMEs), as the South African lender doubles down on its ambitions to serve the country’s six million formal and informal small businesses.
In a media briefing at Capitec’s Stellenbosch headquarters, CEO Gerrie Fourie and Capitec Business head Karl Kumbier unveiled plans for the new loan offering, now in pilot phase, that will evaluate businesses on cash flow rather than collateral.
Loans will carry a 12-month term, extendable up to 36 months depending on the borrower’s risk profile.
“Small businesses have been overcharged for years,” Fourie said. “We’re building our proposition from the mid-market down—R100 million ($5.6 million) turnover to R100 000 ($0.56 million).”
Business banking surges on digital-first strategy
Since acquiring Mercantile Bank in 2019 and rebranding it as Capitec Business in FY2024, the bank has revamped its offering with streamlined business accounts, a redesigned app, and automated credit scoring tools.
In FY2025, Capitec Business grew gross loans and advances by 22 percent to R23.3 billion ($1.3 billion), while its client base expanded 15 percent to 218,207.
In just the past three months, over 43,727 new business accounts were opened.
Scored business overdrafts and asset finance solutions have also gained traction, with balances rising 111 percent to R1.3 billion ($73.4 million).
POS innovation drives merchant acquisition
Capitec’s merchant services now include the sale—not rental—of point-of-sale (POS) devices introduced in mid-2024.
The bank has signed up 63,000 merchants, offering competitive commission rates ranging from 0.6 percent to 0.85 percent on debit cards and 1.6 percent to 1.85 percent on credit card transactions, depending on merchant turnover.
This move supports Capitec’s broader goal of positioning itself as South Africa’s go-to digital-first bank for both individuals and businesses.
Founded in 2001 by Michiel le Roux along with Jannie Mouton and Riaan Stassen, Capitec has grown into a dominant player in South Africa’s banking sector, offering a wide range of products—from savings and transactional services to loans and credit cards.
Leadership transition looms as profits climb
Capitec’s full-year profit after tax surged 30.1 percent to $742.5 million in FY2025, underpinned by robust interest income, digital banking growth, and offerings like Capitec Connect.
CEO Gerrie Fourie, who has helmed the bank for 25 years, will retire on July 18, 2025. He will be succeeded by Graham Lee, Group Executive of the personal banking division.
Under Fourie’s leadership, Capitec evolved from a challenger bank with 5 million clients in 2014 to South Africa’s leading digital bank serving over 24 million customers.
Capitec Bank’s market value hits approximately R409 billion ($23.13 billion), surpassing banking giants Standard Bank and Absa in market capitalization.
Only FirstRand leads with a R430 billion ($24.33 billion) valuation, underscoring Capitec’s rapid rise in South Africa’s competitive banking sector.
