Capitec to offer home loans

OrbitalDawn

OrbitalDawn

Ulysses Everett McGill
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http://www.fin24.com/Companies/Financial-Services/Capitec-to-offer-home-loans-20140602

Capitec Bank announced at its AGM on Monday that it will launch a home loan offering in answer to market demand.

Capitec has concluded a co-operation agreement with SA Home Loans to pilot the introduction of home loans throughout branches in Gauteng for a period.

Thereafter it will be rolled out in the rest of the country, in areas where SA Home Loans has the necessary support infrastructure.

“We recently embarked on the #AskWhy campaign and the feedback from our customers was that they wanted the 'Capitec simplicity approach' to home loans," said Capitec CEO Gerrie Fourie.

“Capitec’s in-branch consultants will assist with the application and initial approval process where after customers will be contacted by a dedicated SA Home Loans consultant within one business day to guide them through their full evaluation and registration process.”

Fourie added that Capitec signed the cooperation agreement with SA Home Loans because the company had a good “cultural fit” with Capitec.

The product will be the same as that which is currently offered by SA Home Loans and will be available to new bond applicants as well as Capitec clients with existing home loans, who would like to switch their bond to SA Home Loans.

Fourie also announced a partnership with Spark ATM Systems to roll out freestanding Capitec-branded ATMs in retail spaces across South Africa.

Withdrawal fees will be the same as other Capitec ATMs.

Fourie said ATM and branch numbers were being expanded as this received the most queries on the Capitec Facebook page.
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Ok, so this isn't really Capitec offering homeloans, but mroe Capitec reselling SA HomeLoans products then...
 
OrbitalDawn said:
How much of an issue is it that Capitec doesn't have Reserve Bank securitisation on their debt?
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how is that possible?? surely to operate as a bank you need to have Reserve Bank authorisation and securitisation?
So if they have not securitisation from the reserve bank, does that mean that if they fail or go bust, they their customers have no recourse to get their money back??
 
lucifir said:
how is that possible?? surely to operate as a bank you need to have Reserve Bank authorisation and securitisation?
So if they have not securitisation from the reserve bank, does that mean that if they fail or go bust, they their customers have no recourse to get their money back??
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No, its not that simple.

The non-securitisation probably relates to the debt they provide, not the deposits etc that you hold with them. They require a Reserve Bank license to provide banking services as far as I know, and that has capital requirements attached to it.
 
Ockie - They already have credit card services. Enquire at your nearest branch.
 
Franna said:
Ockie - They already have credit card services. Enquire at your nearest branch.
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No, I am not talking about the MasterCard Debit card that you can use for your online purchases. I am talking about a actual credit card service with a credit facility linked to it.
 
There was talk of them releasing a credit card facility in the 3rd or 4th quarter of 2013 but nothing has come of it, it seems.
 
It was better to experiment with car finance home loans repayment terms are just to long, it will take capitek many many years to see returns on this venture
 
Kgabogk said:
It was better to experiment with car finance home loans repayment terms are just to long, it will take capitek many many years to see returns on this venture
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Its not their venture, they're just reselling SA Homeloans products. They will get a commission on the deal, and walk away.
 
They only trade in unsecured loans, previously only micro loans, so they don't require securitisation as the other 4 Banks would.

They're also not selling the secured home loans directly, but rather extending a SA Home Loans product. The business partnership could work; they'll most likely get the client to bank with Capitec and SA Home Loans increases its market footprint. Wouldn't be surprised if the one company absorbs the other in the near future.


Ockie said:
Credit Card!!!!!?????

I want to move my credit card to them and close my Virgin Money card. Dont wanna support ABSA. :D
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AFAIK, they haven't released their credit card yet. I think we will only see it by year end or 1st quarter next year.
 
MrR said:
AFAIK, they haven't released their credit card yet. I think we will only see it by year end or 1st quarter next year.
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I dont understand why it is taking so long!? They have been talking about launching a credit card for ages now. Jeebers, just get on with it already.
 
Ockie said:
I dont understand why it is taking so long!? They have been talking about launching a credit card for ages now. Jeebers, just get on with it already.
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I think it might have been too preemptive from their marketing/communications side or a ploy to get market share faster.

AFAIK, credit facilities are different compared to their current credit offering, i.e. once of credit advancement vs. revolving credit, so they would need to apply for that with the NCR, adjust their credit models or implement a whole new model (lots of actuarial stuff involved with modelling) and update their IT systems, contractual/legal obligations and comply with regulatory & statutory requirements as well.
 
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