Capitec: Stalking Giants

by T.J. Strydom

Banking, for most of South Africa's history, catered only to the few. That was until Capitec changed the playbook, disrupting the country's 'big four' - Absa, Standard Bank, FNB and Nedbank. In the early 2000s, a plucky team of entrepreneurs transformed a network of microlenders ('loan sharks' as some called them) into a challenger bank. This young financial services company's exponential growth is a case study in innovation with clear lessons about doing business in Africa.

Genres: Business, South Africa, Nonfiction

261 pages, Kindle Edition

Published October 1, 2024

Reviews

[Holger · Rating 5 out of 5]

I recently read Capitec: Stalking Giants, and it gave me a whole new perspective on what Capitec has achieved in the banking sector. The book takes a deep dive into how Capitec disrupted traditional banking in South Africa, challenging the big players with a simple, customer-focused approach. It’s an inspiring story of innovation, resilience, and strategic thinking—showing how they transformed from an underdog into one of the country’s most dominant banks.

What stood out to me was how Capitec’s model is built around accessibility and efficiency. Their focus on making banking easier, especially for small businesses, resonated with me so much that I decided to open a Capitec account for my own business. The process was smooth, and it reinforced the very principles discussed in the book—simplicity, affordability, and customer-first thinking.

If you’re interested in business strategy, disruptive innovation, or just a great local success story, Stalking Giants is well worth the read.

[Lwazi Bangani · Rating 4 out of 5]

At face value, one might think the Capitec story is one without failures and that’s precisely my criticism of this book. It leans a little too heavily on a sanitized version of events, portraying Capitec as a company that never put a foot wrong. Surely, after more than two decades in existence, there must have been a moment when they planned for sunshine and it suddenly rained. No institution can be this flawless in a world that thrives on imperfection.

That said, credit to the author for being upfront in the afterword, he openly acknowledges that his account is meant to be a positive portrayal of the bank.

Beyond that, Capitec’s journey remains a fascinating story of: sharp thinking, adaptability in a constantly shifting consumer and regulatory environment, & of unwavering belief in its masterstroke of embracing simplicity and serving the lower end of the market when everyone else ignored it.

Overall, it’s a genuinely good read for a casual reader like myself, its simplified, free-flowing, and engaging, with just enough relatability to keep you turning the pages.

However, the inclusion of one founder’s political preference leaves a slightly bitter aftertaste, especially considering how some of the bank’s top brass, past and present, have expressed tone-deaf opinions on South Africa’s socio-economic realities recently.

[Anschen Conradie]

#CapitecStalkingGiants – TJ Strydom
#Tafelberg

The people of Lilliput versus Gulliver. That is a justified first thought when reading the subtitle of this remarkable rags to riches story. In terms of the current subject matter the banking giants Absa, Standard Bank, FNB, and Nedbank would represent the Gulliver figure, and Capitec would be the collective of the diminutive residents of Lilliput.

When our Gulliver resided in ‘…the glitzier parts of Johannesburg’s CBD’ dressed in ‘…heavy wood and pale marble…’ (9) Lilliputters were selling peanuts in the Elandskraal district of rural Limpopo, wearing walking shoes, checked shirts, and jeans, and were referred to as microlenders, also known as loan sharks. This was the situation in the 1990’s, but by 2016 Lilliput was known as Capitec, and carried the title of the world’s best bank.

Despite the humble beginnings and a damning report by Viceroy describing Capitec as ‘… a loan shark… masquerading as a community microfinance provider.’ (169) the founding fathers of this institution proved beyond all doubt that refusing to follow traditional business practices, and, instead, replacing the latter with practical solutions for real life problems – and maybe rushing in where others feared to tread – led to the realization of the vision: ‘Just like Coke, we wanted to offer a consistent product that is accessible to everyone.’ (69)

In the back rooms of bureaucratic banking institutions ‘…herds of banking personnel roamed around making mysterious entries in files, leaving a paper trail deep enough to fill encyclopaedias.’ (9) Capitec did the opposite; the branches housed no administrative personnel, choosing to utilize a centralized support system instead, thereby drastically reducing the required floor space and costs attached thereto. In addition thereto, they focused on those who were generally deemed to be ‘unbankable’ (9), extended business hours, went paperless, and used existing needs as determining factor in decision making regarding location.

Lilliput is now proudly wearing Gulliver’s jacket. And it is a perfect fit.

#Uitdieperdsebek

[Franco Forleo · Rating 5 out of 5]

The story, well written and documented of the rise from micro lending to the superpower banking institute that Capitec is today.

[Ed Stoddard · Rating 4 out of 5]

Simply excellent ... stay tuned for my Daily Maverick review ...

[LizBetweenTheLines · Rating 4 out of 5]

What an excellent title, I love a carried metaphor (chapters later named after the beanstalk). I’ve never actually read a business nonfic before and it was tough as there’s no plot to expect, just a company’s autobiography really. But the author’s use of literary devices and short chapters helped carry the story and had me releasing a few chuckles😂

There were many characters involved in building the Capitec story and, for the most part, it is interesting to see how one would build a bank. I was quite uncomfortable with the description of the exploitative nature of micro-lending at the beginning of the book. I hoped to hear more on the dark side, but this is a positively framed story of the bank.

I just wish I wasn’t 3 years old when Capitec listed on the JSE.

[Welcome Motha · Rating 3 out of 5]

Great book overall, a great insight into the ways that work when marketing a product to the mass "poor" market in South Africa. The most interesting to me was how adhering to principles, whether in life or in business leads to consistency and subsequently success, despite some of their early backers doubting them they forged ahead with their 4 core piciples. The book also did a great job describing the challenges the bank and its leaders faced. It is a great book. I recommend it.

[Mike Burrell · Rating 5 out of 5]

Excellent

This is well researched and a very readable book. The style is easy, but most importantly, it is very informative and clearly totally factual. I recommend this to anyone interested in banking in Africa (or anywhere else).

[Lyndon · Rating 4 out of 5]

Easy to read and interesting. Gives a good insight into the company that changed banking in sa

[Buren Peters · Rating 4 out of 5]

Love a good David and Goliath story, sometimes your skillset can turn you into a king.

[Hulisani Khorommbi · Rating 3 out of 5]

good

[Reader · Rating 3 out of 5]

Gave me a soft spot for capitec and great book about disrupting the market. But not a fan of the writing - timeline was sometimes confusing and too many idioms

[Karen Watkins · Rating 4 out of 5]

This story chronicles the rise of Capitec Bank from its humble beginnings as a micro-lender to its current status as South Africa's largest retail bank. The story is framed around themes from Jack and the Beanstalk as it dives into Capitec’s journey of challenging the “giants” of the banking sector – Nedbank, Absa, Standard Bank and FNB.
The story begins in rural Limpopo, far from the Stellenbosch headquarters Capitec would later call home. Launched in 2001, the bank set out to revolutionise banking for South Africans excluded from traditional financial services. Rejecting conventional wisdom, Capitec built branches while competitors were closing theirs and focused on simple, accessible products like savings, loans and transactions. The bank refused to offer airtime or funeral insurance, despite board pressure, remaining committed to its vision of addressing real-world financial needs.
Strydom details how Capitec grew from 25,000 clients in its early days to over 22 million by 2024, with a market capitalisation exceeding R300 billion. The author provides a behind-the-scenes look at the challenges faced by the “Boland boys,” including scepticism from industry heavyweights and a scathing report from Viceroy branding the bank a “loan shark.” Yet, through innovation, determination and a clear mission, Capitec reshaped the South African banking landscape, dramatically reducing the number of unbanked citizens from 17.6 million in 2001 to 3.6 million by 2023.
Strydom’s accessible style and journalistic accuracy make this more than just a business book. It’s an inspirational tale of grit, innovation, and defying the odds. Whether tracing the significance of Capitec's blue-and-red logo or highlighting essential decisions like introducing a credit card at half the competitors' rates, the book captures the essence of an underdog's triumph.
The book is basically a uniquely South African success story offering valuable insights for entrepreneurs and anyone looking for a good read.
Thanks to Jean Pieters and Tafelberg for the review copy.

[Mbachi Thindwa · Rating 5 out of 5]

Well written and honest story about Capitec. Though it's not an official biography from any of the founders, the story and insights are top notch.