Growing a business in a crowded, competitive market is challenging, but Capitec’s story has some lessons that any company can use as guidance.
Be brave
When Capitec entered the market, “the Big Four” dominated it, and it seemed unlikely that a new player would do much to challenge them. People were loyal to their banks and establishing one that would make them “switch” was an ambitious idea. But that’s what Capitec did in 2000, and 7 years later, it had over a million clients. It now boasts over 21 million clients and is one of the industry’s most recognisable and trusted brands.
Stay focused
Be clear on what your business does and does not do. Focus is important for decision-making, which can make or break your business. Capitec has done this right, with simplicity as one of its core values. It doesn’t overwhelm its clients with its product portfolio. Clients get one account to save, get credit, transact, and get insurance.
Be yourself
As your business grows, losing sight of your plan and the things that make you different in the market can be tempting. You might get tempted to change offerings to take on your competitor. Capitec’s rise in the banking space has proven that your success depends on staying true to your plan and working your way up gradually. Capitec started by serving a market in rural areas that traditional banks didn’t see as profitable. Even when it started having a presence in larger cities, it set up branches and served clients at the low end of the market, which gave the bank an edge and has taken it from being the underdog to the continued success story it is today.
Put the client first
Knowing who your clients are and what problems your product or service solves for them is important for any business. In a market with established brands, it is easy to assume they’ve thought of everything, but Capitec’s story proves this isn’t always true. From introducing longer banking hours, opening on Sundays, and charging a fixed rate regardless of how much a client was transferring to having clients sit and look at the computer screen with the service consultant, Capitec changed the game so that their clients could “live better.”