Ivey Publishing
Capitec Bank: Leveraging Banking Innovations to Attract Wealthier Customers
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11 pages (11 pages of text)
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Case (Library)
Capitec Bank was a new bank established at the end of apartheid to offer banking services and loans to the large numbers of low-income potential customers newly opened to economic progress and aspiration by the end of the discriminatory system. The banking context was dominated by four major and long-established banks characterized by conservative legacy practices. Capitec planned to create an innovative offering to serve the low-income market and to migrate this offering into higher income groups. At the same time, the competitive context began to change, as other banks sought to attract lower-income clients as well. The case examines Capitec’s strategic options for survival and expansion in this context.
Learning Objective:
The case will be useful for postgraduate MBA courses and short courses focused on a key challenge of doing business at the so-called “base of the pyramid”: how successfully can an enterprise in a changing competitive climate both continue to consolidate and develop its low-income market, while at the same time diversifying its reach into higher-income banking markets? The case can be taught from the perspective of engineering a product for a low-income market or innovating in a context dominated by legacy players. It also provides insight into the market context for innovation in a middle-income country such as South Africa.
General Management/Strategy,  International
Finance and Insurance
South Africa, Medium, 2012
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$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download
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