The consumer banking industry is notoriously difficult to enter, not least because most customers rarely switch banks. In some countries, people change spouses more often than they change banks.
How Capitec Became South Africa’s Biggest Bank
Strategy lessons from a sector where innovation is rare.
October 10, 2018
Summary.
The consumer banking industry is notoriously difficult to enter. But in 2000 in South Africa, a new player entered the industry. Capitec started establishing branches rapidly. Ten years later, it has more than 10 million clients and about 800 branches. It has become the largest bank in the country. Doing this required maintaining focus and resisting the urge to add features or complements that might add revenue but weren’t closely tied to the long-term strategy. While the bank did evolve over time, it did so in a planful way. And it was never afraid to break free from old habits that held back its growth.
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New!
HBR Learning
Strategy Planning and Execution Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Strategy Planning and Execution. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to develop a winning strategy—and put it to work.