Resources and capabilities of capitec bank:
1. What resources and capabilities made Capitec successful?
Capabilities- The individuals who came together to start Capitec came from a strong financial and micro-lending background; they had a very good understanding of the banking systems. They started this business well equipped.
Resources- Capitec was originally capitalized with R350 million was worth R2.2 billion and the results which were released in September 2006 showed a 23% return on equity, its profitability increased by 71%, and the bank itself had grown by almost 50%. Their business model was built on 4 pillars, Accessibility, Affordability, Simplicity and Personal Service. They used less space, and resources for example cashless transactions, security but not installing a bullet proof glass and less risk of robberies, Cost were saved buy only having 1 ATM at each branch, location played a very important part in Capitec’s Business Model, they went were the mass were, and had working hours that were accommodating to its customers. Capitec also made alliances with retailer’s i.e. Shoprite ect which people can withdraw cash. Capitec’s aim was to change its customer perception from thinking it was only a micro-lender.
o Reputation of banks increases competitive advantage. The more ‘popular’ the bank the more it is supported by the community. Capitec succeeded in being reputable, by looking at the interest of client first and its profits for its shareholders second and offering simple, understandable and low cost products (Cameron, 2011).
o Culture: the generalised perception of banks is that they are expensive, slow, offer complicated products and the services require large amounts of paperwork (Townsend and Mosala, 2006) by applying its business model, Capitec managed to change this perception.
o Skills and knowledge: Employees must be trained with adequate skills...
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