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Capitec ups its game — new board member signals bank’s big ambitions

Capitec ups its game — new board member signals bank’s big ambitions
Yeshiel Panchia
By Yeshiel Panchia
12 Feb 2025
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With the appointment of Raghuvir Rai Malhotra the bank is aligning itself with the next phase of financial services, where banking is increasingly digital, scalable and borderless.

Capitec, the youngest of the five big banks, has seen its growth defined by transformation. From humble beginnings as a microlender to South Africa’s largest retail bank by customer base, the company has steadily ventured into new markets, reshaping its services while maintaining its core offerings of affordability and accessibility.

Now, with the appointment of Raghuvir Rai Malhotra as an independent non-executive director, Capitec is signalling its next evolution – a deeper integration into digital banking, financial technology and alternative lending models.

A senior banking insider, speaking to Daily Maverick anonymously, described the appointment as a clear indication of Capitec’s long-term ambitions: “Bringing in a guy like Malhotra isn’t about day-to-day banking. It’s about scaling digital payments and credit, leveraging fintech and looking beyond South Africa.”

A man in finance


Malhotra, a former Mastercard executive, is renowned for transforming the company from a product-based credit card business into a multirail digital finance powerhouse. His expertise in fintech expansion, global payments and financial inclusion aligns with Capitec’s strategy to increase transaction-based revenue, embed financial services and develop scalable credit models.

Capitec’s latest financial results underscore this trajectory. For the year to the end of February 2024, non-interest income contributed 72% of total income, a significant shift from the bank’s historically lending-driven revenue model. Net transaction and commission income grew by 29% year-on-year to R14.8-billion, driven by digital banking services and an expansion in point-of-sale and online transactions. 

Insider insights


Another industry figure noted that Malhotra’s regulatory expertise could prove crucial given Capitec’s past compliance challenges: “Capitec’s compliance history hasn’t been spotless – they’ve had issues with financial crime and oversight. A former Mastercard exec knows exactly how regulators think.”

The bank has also taken a more aggressive stance on business banking, introducing new digital-first offerings and revamping its merchant services. Traditionally focused on retail clients, Capitec is now prioritising business banking, necessitating scalable payments and credit infrastructure. Malhotra’s experience in managing multirail financial systems and global compliance frameworks suggests he will play a key role in shaping this expansion.

In his keynote address at the BizNews Conference in 2024, Capitec CEO Gerrie Fourie detailed the bank’s journey, emphasising early differentiation, client-centric culture and digital innovation. He highlighted the importance of maintaining simplicity and accessibility, stating: “Our fundamentals were affordability, accessibility, personal service and simplicity. Today, those fundamentals still guide our decisions.”

More than numbers


This commitment to foundational principles has been central to Capitec’s strategy. However, as the bank shifts toward fintech innovation, a new depth of expertise is required – Malhotra’s presence on the board suggests that Capitec is preparing to engage more aggressively in the digital finance space, potentially through partnerships with fintech firms, expanded international lending or deeper integration of AI-driven credit models.

The implications of this move extend beyond Capitec itself. South Africa’s banking sector is facing increasing pressure from fintech disruptors and digital-first banking platforms. Competitors such as FNB and Standard Bank have already invested heavily in digital transformation, while new entrants such as TymeBank, Bank Zero and Discovery Bank are challenging traditional players with innovative models. 

Read more: Nubank investment catapults Tyme group into unicorn territory, promising future growth

Capitec’s ability to adapt and expand into digital credit, alternative lending and embedded financial services will determine how it competes in this rapidly changing environment.

While Capitec has yet to confirm any explicit plans for global expansion, its strategic direction is clear. With Malhotra’s appointment, the bank is aligning itself with the next phase of financial services, where banking is increasingly digital, scalable and borderless. The question now is how quickly Capitec will implement these changes and whether it can maintain its reputation for accessibility while expanding into a more complex financial ecosystem. DM

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