Capitec has confirmed a bancassurance joint venture with Sanlam, as first reported by Moneyweb.
The banking group announced plans to launch a Capitec Funeral Plan, underwritten by Sanlam in May 2018 as part of its insurance services, a new addition to its Global One offering.
“This is an opportunity to further diversify our business and expand our product offering to clients to improve their financial lives,” the banking group said a SENS statement.
According to the bank its offering will allow clients to contribute only what they can afford, with an in-built voluntary pause option allowing clients to put their policy on hold for up to six months during times of financial strain.
Capitec, renowned for offering affordable banking solutions to South Africa’s entry level market, had 9.9 million active clients as February 28 2018. It is arguably the fastest growing bank in the country and expects to hit the 10 million client mark during the course of this month.
Moneyweb first reported on the potential deal after Sanlam noted, in presenting results for the 2017 financial year, that a distribution partnership with Capitec formed part of its diversification strategy, which would “enhance resilience and earnings growth”.