Competition, Barriers to Entry and Inclusive Growth in Retail Banking: Capitec Case Study

dc.citation.doihttps://doi.org/10.23962/10539/21626
dc.citation.issue17en_ZA
dc.contributor.authorMakhaya, Trudi
dc.contributor.authorNhundu, Nicholas
dc.date.accessioned2017-01-16T22:20:53Z
dc.date.available2017-01-16T22:20:53Z
dc.date.issued2016-01-15
dc.description.abstractThis case study examines barriers to entry in retail banking in South Africa, informed by Capitec’s experiences as an entrant in this concentrated and highly regulated sector. Capitec’s entry and growth in transactional banking sparked a competitive response from incumbents. Across all four incumbent banks, the fees for low-cost accounts have come down in nominal terms. It is unlikely that these effects would have occurred if the status quo had continued without a disruptive entrant, or if Capitec had been acquired by one of the incumbents early on. Capitec overcame barriers to entry including customers’ reluctance to switch, complex regulation, and the largely self-regulated payments system, in order to grow, in a sector populated by incumbents with some market power. The case study considers measures that could lower barriers for future entrants.
dc.description.librarianCA2016en_ZA
dc.description.urlwww.wits.ac.za/linkcentre/ajicen_ZA
dc.identifier.citationMakhaya, T., & Nhundu, N. (2016). Competition, barriers to entry and inclusive growth in retail banking: Capitec case study.The African Journal of Information and Communication (AJIC), 17, 111-137. https://doi.org/10.23962/10539/21626en_ZA
dc.identifier.issn2077-7205 (print version)
dc.identifier.issn2077-7213 (online version)
dc.identifier.urihttp://hdl.handle.net/10539/21626
dc.identifier.urihttps://doi.org/10.23962/10539/21626
dc.journal.titleThe African Journal of Information and Communication (AJIC)en_ZA
dc.journal.volume17en_ZA
dc.language.isoenen_ZA
dc.publisherLINK Centre, University of the Witwatersrand (Wits), Johannesburgen_ZA
dc.titleCompetition, Barriers to Entry and Inclusive Growth in Retail Banking: Capitec Case Studyen_ZA
dc.typeArticleen_ZA
ddi.keywordcompetition, barriers to entry, digital technology advances, retail banking, Capitec Bank, South Africa
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