For reference, Capitec had assets worth R208 billion as of April 2024, while Standard Bank had assets worth R3 trillion.<\/p>\n
Anchor Capital analyst Harry Botha says the bank still has meaningful growth potential over the next decade.<\/p>\n
However, competitors like TymeBank and Old Mutual’s yet-to-launch OM Bank could throw a spanner in the works.<\/p>\n
Old Mutual plans to launch OM Bank<\/a> by the end of the year and target a market similar to Capitec’s.<\/p>\n Old Mutual filed its section 17 application earlier this year and received approval from the Prudential Authority to launch its bank in April 2024.<\/p>\n This comes just under two years after it received its banking licence from the Prudential Authority. It said it planned to break even in three years.<\/p>\n OM Bank will target the upper mass market and lower affluent customers who earn between R5,000 and R80,000 per month.<\/p>\n Built using 10x Banking’s cloud technology, Old Mutual says it can offer personalised, affordable, and flexible services to South African customers.<\/p>\n The company said building a bank is crucial to its plan to establish a fully integrated financial services ecosystem and its clients’ primary point of contact.<\/p>\n It added that having a bank to accept retail deposits would provide a cheaper source of funding.<\/p>\n Iain Williamson, Old Mutual CEO<\/p><\/div>\n Patrice Motsepe-funded TymeBank also poses a significant threat to Capitec. It offers affordable banking through its online platform and at in-store kiosks at major retailers.<\/p>\n TymeBank reached its first month of profitability<\/a> in December 2023, making it the first digital bank in South Africa to break even.<\/p>\n “We are extremely proud of our achievement, particularly when you consider that globally, less than half of the top 100 digital banks are profitable,” said TymeBank CEO Coenraad Jonker.<\/p>\n “In fact, a rece<\/a>nt<\/a> study<\/a> stated that less than 5% of all neobanks worldwide had reached profitability.”<\/p>\n Despite these threats, Capitec CEO Gerrie Fourie said he is more concerned about the competition international brands like Apple and Facebook could bring to the country’s banking space.<\/p>\n![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/03\/Iain-Williamson-with-Old-Mutual-building-in-background-bokey.jpg\")