Capitec’s net income from data rocketed 1,625% to R69-million over the past year

At an Amazon Web Services (AWS) conference in August, Blessing Mgaga, divisional executive: client experience delivery (retail) at Capitec, said that around June 2024 the bank used AWS to launch a service on its app that can validate whether consumers are on a trusted call or not.

Over two months that new capability monitored about five million calls. “If you are on the call, you can log into the app and verify whether or not you are talking to a legitimate Capitec agent,” Mgaga said.

Over the past six months to the end of August, Capitec invested R1.7-billion in IT, with about 50% of that directed towards digital initiatives. “This significant investment underscores our commitment to enhancing our digital transformation efforts, which have been pivotal in driving our growth, digital expansion, and improving our client experience,” chief executive Gerrie Fourie said.

In 2024, the total net income from value-added services rocketed 73% to R2-billion – including prepaid data and airtime, prepaid electricity, Lotto tickets, vehicle licence disc renewals and bill payments. Capitec customers drove 174,050 licence disc renewals between 22 February and the end of August 2024.

Since launching Capitec Connect in 2022 the bank has seen record growth in data and airtime sales, no doubt driven by the fact that, unlike with other operators, Capitec Connect data and airtime purchases do not expire.

At the time, Capitec Connect offered rates of R4.50 per 100 megabytes or R45 for one gigabyte, which was on average 50% below the normal market price. The bank has made much of the fact that data will not expire provided the SIM is used at least once in six months. And although the other bank mobile virtual network operators (MVNOs) do offer data packages that do not expire, these were almost twice as expensive as those with shorter expiry dates.

The MVNO game has exploded, with the five biggest banks all playing in the space and newcomer Old Mutual Bank announcing this week that it will be launching its offering – Old Mutual Connect – before it has even opened its doors.

Clarence Nethengwe, managing director of the Old Mutual Mass Foundation Cluster and CEO designate of Old Mutual Bank, said affordable data and reliable connectivity were critical for customers in the mass market to fully participate in the mainstream economy. “It is also an important enabler for our customers to interact with the rest of our propositions digitally.”

Old Mutual Connect’s proposition includes:

• Easy access to SIM cards and data. From as little as R5 customers can get a SIM card from any Old Mutual branch. They can also buy data and airtime from a variety of channels – branch, partners and digital.

• A sign-up bundle: activate your SIM and get 1GB free data;


• A double-up promotion or a two-for-one data bundle: when you buy any data product, get an additional purchased bundle for free; and


• Simple on-boarding. Hassle-free assistance to Rica your SIM or port your number at any Old Mutual branch near you.

How other banks are raking in MVNO income