Responsible lending

Published: FY2024

Fuelling dreams, the Capfin way
Capfin distinguishes itself in the often exclusive financial services sector as a dedicated advocate for inclusivity and empowerment. As part of the Pepkor group, known for its value retail offerings, Capfin loans are accessible through PEP and Ackermans stores and online channels, integrating seamlessly into South Africa’s financial and retail landscape. This connection enhances Capfin’s role, positioning it not just as a lending entity but as an essential contributor to societal growth and sustainability.

People-shaped reasons
Many people view the financial services world as inaccessible and often associated with the challenges of managing money effectively. Capfin has a different perspective; it sees the need for loans as more than just financial transactions. It is about parents wanting to afford better education for their children, families looking to build or extend their homes, or individuals hustling with side projects, hoping to one day rely fully on these ventures for their income.

This understanding drives Capfin’s approach to lending, focusing on the ‘people-shaped reasons’ behind each loan application. By tailoring their services to meet these real-world needs, Capfin transforms the typical lending process into a supportive partnership, fostering financial growth and independence for its customers. This empathetic approach addresses immediate financial needs and contributes to broader societal well-being, supporting parents, homeowners, and entrepreneurs in their quests for a better life.

Reimagining vulnerability
At the core of Capfin’s philosophy is a deep comprehension of the vulnerability accompanying borrowing. For many, obtaining a loan is filled with isolation and opportunities for acceptance and belonging. Capfin seeks to transform this narrative, highlighting the empowering potential of such moments. By recognising each loan application’s unique motivations, Capfin commits to seeing its customers beyond the numbers, embracing the personal stories and aspirations that underscore their financial decisions.

Customers like Mamoeketsi Booi illustrate this commitment. “Capfin has been a great help to me since my three girls were in primary school, and now they’ve both completed matric. As a single mother, I’m proud to call myself a great mom because of Capfin’s financial help. Thank you so much,” she shares.

Vusi Mkhabela’s story adds another layer to this narrative: “Capfin has been the pillar of my family for the past seven to eight years and has never disappointed in times of need. Even now, I stand balanced with one leg; the other is Capfin. So thank you, Capfin, for helping us, keep up the good job. We are happy to say Capfin is our saviour.”

Emma van Vrede’s experience demonstrates the broad spectrum of Capfin’s impact: “For the past four years, I have used Capfin to pay for my studies and my son’s studies. Whenever I needed an extra financial boost to pay for unforeseen expenses, I could always rely on Capfin to assist me within days. I am forever grateful for this.”

Throughout these customer journeys, Capfin is a partner in turning moments of financial vulnerability into opportunities for growth and stability.

Impact beyond numbers
Capfin’s impact is vividly illustrated not just through its financials but through the diverse purposes for which its loans are utilised, reflecting the varied personal needs of its clients. The statistics tell a compelling story: 22% of the loans are used for education and unforeseen costs, 42% for home improvements, maintenance and renovations, and 5% for business-related or side hustles. These numbers underscore Capfin’s commitment to supporting real-life aspirations and emergencies.

Importantly, Capfin’s role extends to nurturing the entrepreneurial spirit within its community. The company supports a range of side business endeavours. These clients, like a self-taught makeup artist who runs an online and mobile beauty bar, aspire to enhance their skills through professional training and certifications, using loans to access opportunities that allow them to compete and excel in their fields. Another client manages her beauty services business during evenings and weekends around her full-time job, striving to transform her part-time passion into a full-scale operation. Additionally, an educator uses her skills to assist students with reading difficulties outside her regular work and hopes to expand her educational reach by incorporating math into her curriculum. Similarly, a home baker started her business in 2022, specialising in baked goods and desserts, but it needs to be improved due to non-commercial equipment.
Capfin’s financial support enables her to maintain and grow her business, reflecting the lender’s deep understanding that “you’re not a loan” – it’s about empowering individuals to enhance their livelihoods and contribute meaningfully to their communities.

Capfin’s ‘Matriarch’ television ad, released in October 2022, was recognised and rewarded twice (Silver and Bronze) at the 45th Annual Loeries Awards. Africa and the Middle East’s premier awards programme promotes and supports creativity in the advertising and brand communications industry by recognising and rewarding fresh thinking, innovative ideas and outstanding execution. A story inspired by customers, told in recognition of everyday South Africans living empowered lives, by Capfin in collaboration with King James (part of Accenture Song SA) and Ola!films.