Capitec’s AI tools prevent over R200 million in fraudulent transactions

According to the bank, app users grew by 13% to 14 million, driving a 35% surge in e-commerce transactions.

South African digital bank Capitec has intensified its use of artificial intelligence (AI) to combat scams, revealing that its AI-driven fraud prevention system has already stopped more than 23,000 fraudulent payments, protecting clients from losses exceeding R200 million.

The announcement came alongside Capitec’s interim financial results for the period between March and August, highlighting how the bank’s ongoing investments in its digital ecosystem are paying off through stronger client engagement and operational gains.

Capitec’s mobile app user base grew 13% to 14 million, fueling a 35% increase in e-commerce transactions, while digital wallet payments surged 131% year-over-year, underscoring a sharp rise in digital adoption.

According to the bank, new AI-enabled features are central to its digital security strategy. These tools automatically detect and block payments to high-risk account numbers, reducing the likelihood of clients falling victim to online scams.

Beyond security, the bank also reported improvements in customer convenience and cost savings. Free in-app calling has collectively saved clients R5 million in airtime, and personal credit card users now benefit from 1% cashback on purchases, 1GB of monthly data through Capitec Connect, and zero forex commission—a combination that saved clients R25 million over six months.

Capitec’s mobile network service, Capitec Connect, has also grown steadily, now serving 1.1 million active SIM cards. Meanwhile, its in-branch self-service terminals handled 3.9 million transactions, freeing consultants from approximately 3.2 million minutes of administrative work and allowing more focus on complex client needs.

Financially, Capitec reported a 26% rise in headline earnings to R8 billion, supported by a 27% increase in net interest income after credit impairments, reaching R7.1 billion. Non-interest income—driven by value-added services, Capitec Connect, and insurance—climbed 19% to R13.4 billion, while the bank’s fintech division saw an impressive 40% jump to R2.9 billion.

Return on shareholders’ equity improved to 31%, up from 29% last year, signaling robust profitability and disciplined capital management.

Commenting on the results, Graham Lee, Capitec Group CEO, said the bank’s strong performance reflects its client-focused strategy and commitment to innovation:

“Our goal has always been to build trust and deliver solutions that truly matter to our clients. With a base of 25 million clients, we’re in a unique position to lower transaction costs, grow revenue, and keep investing in digital products that simplify everyday life.”