Capitec – now also simplified life insurance

Capitec (Capitec Bank Holdings Limited) officially launched its much-acclaimed life cover on Tuesday (June 25, 2026), named Capitec Life Cover.   The company has its headquarters in Stellenbosch in the Western Cape, South Africa.   

Evolution and progress of Capitec – some important milestones 

• In 1997, the PSG Financial Services Group of Jannie Mouton, an independent and leading financial services group, acquired microlending businesses like Finaid and Smartfin. PSG aimed to establish a dominant position in the fragmented microlending industry.

According to an analysis (dated January 2006) of Capitec by Moody’s (a leading global provider of credit ratings), management changes at PSG in 2000 caused the microlending business to spin out ‘as a subsidiary of PSG Investment Bank and later into the Business Bank,’ which was bankrupted in 1999. The bank license of the bankrupt Business Bank eventually opened the way for the founders of Capitec Bank to start a retail bank.  

• On 23 November 1999, Capitec was incorporated and officially brought into existence.  

• The following milestones occurred in 2001. 

 Capitec was founded on 1 March by Jannie Mouton, Michiel le Roux, and Riaan Stassen. On this day, the bank also opened the doors of its first 55 branches. On 29 June, Capitec registered as a bank controlling company, as envisaged by the Banks Act. 

• In 2002, Capitec was listed on the JSE (Johannesburg Stock Exchange) on 18 February, only nine days after the collapse of Saambou Bank. However, 18 February was not a good day for the company’s share price, which was valued at about R5 per share at the time of listing, with an expectation of an opening price of R3. Alas, the share price opened at R2.75, then dropped to an all-time low 80 cents per share.  

22 years later, on 19 February 2026, a Capitec share was valued at R2 040! 

• In 2003, Capitec was unbundled out of PSG, allowing a wider shareholding structure for the company. 

• In 2016, the international banking advisory group, Lafferty, ranked Capitec as ‘The Best Bank in the World,’ an achievement repeated in 2017. 

• In October 2019, Tito Mboweni, the then South African Minister of Finance, as well as other regulatory authorities, formally authorised the purchase and acquisition of Mercantile Business Bank by Capitec Bank. 

• Capitec bought all the shares of Mercantile Bank Limited on 7 November 2019.  

• In October 2022, Capitec announced that the Prudential Authority (PA) has granted the company a licence to conduct life insurance business in South Africa. 

• April 2026 - Capitec announced that it would launch its life cover product in June. 

• Regarding Capitec’s client base, the bank has increased exponentially, from 25,000 clients in 2001 to 22 million active clients at the end of February 2026, making it the largest retail bank in South Africa.  

Announcing its financial results for the financial year ended February 2026, Capitec mentioned that ‘its active client base grew by 10% to 22 million, while App users increased by 19% to 11.2 million (2023: 9.4 million).’    Capitec’s active clients are 10 million more than the active clients of Standard Bank, which is the next largest bank in the country. The active client base of Capitec compares with the active client bases of Standard Bank, Absa, and Discovery Bank combined. However, in the case of Absa and Standard Bank, only South African customers. 

• June 25, 2026 - launch of Capitec Life Cover.  

 

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Reasons why Capitec has entered the life insurance industry 

With the launch of Capitec Life Cover, the company mentioned there is a chronic lack of life cover in South Africa, citing the 2022 Financial Sector Outlook Study of the Financial Sector Conduct Authority (FSCA) that only 10% of South Africans have life cover, plunging from 12% in 2019.   This situation is likely caused by SA’s tough economy, challenging life cover application processes and the continued complexity of life cover products.  Gerrie Fourie (CEO of Capitec) considers the reasons mentioned above as barriers/obstacles in the life insurance industry and wants to break the barriers, allowing more South Africans to afford life cover.  In a statement during the week when Capitec Life Cover was launched, Fourie said: ‘South Africa’s vast insurance gap is likely due to people’s experience of life insurance as complicated, expensive, and intimidating. The complex terms and conditions, invasive medical tests, lack of transparency around premiums, and prohibitive selling practices deter many from getting the coverage they need to protect their loved ones. We’re committed to helping South Africans overcome these obstacles by providing a simple, affordable, accessible, and personalised life insurance solution.’ (Accentuation by the article writer.)   

More of the same 

It is obvious from Fourie’s statement that Capitec’s approach to life cover will be based on the same four core principles which guide the operations and culture of Capitec Bank. These principles are: 

• Simplicity - making life insurance transparent and straightforward for its clients. 
• Affordability - focusing on ‘cost-conscious’ practices, providing value for money to its clients. 
• Accessibility - aiming to offer accessible life cover to all, making sure that life insurance ‘is within reach for everyone.’ 
• Personalised service - prioritising ‘the client experience, aiming to create a personalised and positive interaction with each customer.’ 

Regarding Capitec Life Cover, the slogan of Capitec Bank - ‘Its Banking Just Simpler’ - can be rephrased to ‘Its Life Insurance Just Simpler.’  Put differently, simplified life insurance.     

Features of Capitec Life Cover 

• Application process 

Capitec assures the application process is ‘quick and easy.’ Features of the application process are: 

• Clients need to answer only six to eight questions that are ‘easy to understand.’ 
• No requirement to go for medical tests. 
• The application is done online via the Capitec app or at one of more than 800 Capitec branches. According to Capitec, the process ‘takes less than 10 minutes.’   
• Capitec promises that clients will know ‘within minutes’ whether they are covered upon acceptance of the quote. 
• No complicated contracts. In the words of the CEO of Capitec: ‘There’s no jargon and no 30-page contracts with complex clauses. We explain everything in plain language that clients can relate to.’ 
• Throughout the application process, Capitec will be transparent about when they will pay and when they will not.  

 

• Premiums 

Premiums will not increase annually unless additional cover is taken by the client.   

• Cover management 

Clients can manage their life cover, adding or changing beneficiaries directly on the Capitec app. Those who choose in-person service can visit a Capitec branch for assistance.    

• Payout options 

Capitec Life Cover allows clients the flexibility to choose or combine three payout options: 

• A lump sum (also referred to as a once-off payment or a one-time payment) to cover immediate expenses such as large financial needs or outstanding debt. Beneficiaries will be able to manage the payment received according to their priorities, making sure they can deal with critical financial needs. 
• A monthly income is an option where a monthly income is paid to a beneficiary or beneficiaries for a period up to 24 months. This option will allow a beneficiary or beneficiaries a steady and predictable income stream during the time it is mostly needed. An option particularly beneficial to families who have lost a breadwinner and who rely on a monthly income to maintain their standard of living. 
• A payout for the needs of children where the money is paid into an umbrella trust, providing for the education of children, and making sure that other long-term needs of children are taken care of. An umbrella trust is a safeguard to ensure that funds are managed responsibly and used exclusively for the daily needs (for example: food and accommodation) of children, as well as their school expenses.  

“Choice is a key part of our personalisation model,’ as claimed by Gerrie Fourie (CEO of Capitec), saying: ‘We realise that a mother’s priority may be ensuring her kids can stay in school if something happens to her, while an entrepreneur may need a lump sum to settle business debts. That’s why we let clients decide what mix of payouts will protect their loved ones.’  Furthermore, Capitec assures that clients will not ‘encounter any hidden clauses or excessive exclusions designed to avoid payouts.’   

• Claims 

Clients can even submit claims via WhatsApp.  

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