Capitec Bank Host First Debt Counselling Conference

Capitec Bank Debt Counselling Conference

Capitec Bank hosted a well-attended workshop with Debt Counsellors in Stellenbosch for the first time during September. Debt Counsellors from various provinces attended and enjoyed the opportunity to engage directly with the bank and key staff members.

 

 

 

 

The bank pride themselves on being consumer focused and breaking the traditional banking mould. They say they are concerned with helping their clients when they experience financial difficulties. As such, they actively support the debt review process. It is also a legal requirement of the National Credit Act for all credit providers.

Their recent slogan is: Bank Better, Live Better. It was hoped that the day long conference would help enable Debt Counsellors to get a taste of the bank’s mindset and processes (focussing on ‘why‘ certain processes are set up the way they are). They also hoped that during the day they could connect with Debt Counsellors and spot any problem areas that need more focus.

 

 

 

Trends

Capitec is noticing more and more consumers are entering debt review close to the time of a recent loan.

Capitec Bank finds that many times when consumers are under debt review that this status is not showing on the credit bureaus. Sometimes this can be as high as 20% of matters.

Some marketing campaigns are confusing to consumers and some Capitec Bank clients under debt review have even said they were not sure if they were under review and what the implications of debt review are.

Increased Feedback For All DCs

Capitec Bank Debt Review currently track the figures of their Top 10 DCs (based on the value of their book and number of clients). They then report back to these firms regularly to help them see how their clients are performing. It also helps identify trends and possible problems. For example, Recently two of these firms saw their first proposal acceptance drop by over 60% within one month. This was soon identified as a system issue from their side and the matter was sorted out. Over time Capitec say they will be rolling these reports out to all DCs (as it becomes more automated).

Consumers Must Pay

Only 60% of clients are paying as per their repayment plan (as originally received and agreed to by Capitec). Some clients have missed a month or two. This is worrying. Some Debt Counsellors and Attorneys pointed out that many Debt Counsellors push clients too hard to fit into the DCRS mould and this can cause problems down the line if they have not heleped the consumer budget well enough and make big enough lifestyle changes.

Capitec Bank have seen that client account terminations steadily increase over time. The longer a consumer is under debt review the more likely that they will be “terminated” this also matches with withdrawals (when consumers no longer want or need debt review).

Dr. Steve Harris was invited to speak at the Capitec Conference regarding mental toughness. He discussed how many professional athletes win by less than 1% effort/time/distance. He advised improving everything you do by 1%.

After lunch, the audience got to not only hear more information on procedural matters but also offer suggestions on “hot topics” such as:  how the bank and Debt Counsellors can work closer together and what to do about dodgy call centre sales operations and illegal debt mediation scams. There was also a Questions and Answers session to close out the rather successful day.

 

 

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