Capitec in Talks to Offer Smart ID and Passport Services at Bank Branches

Capitec, South Africa’s biggest bank by customer numbers, has confirmed it is in ongoing discussions with the Department of Home Affairs (DHA) about potentially offering Smart ID and passport application services at its branches.

The bank, known for its large branch network and simple banking approach, was notably absent from the initial pilot programme, which launched back in 2015. However, the DHA has recently intensified efforts to expand the programme to over 1,000 bank branches nationwide as part of its digitisation drive—and Capitec may now be reconsidering its earlier stance.

Why Capitec Is Now Open to Talks

Capitec said that while no final decision has been made, the talks have been “productive” and are being approached with customers’ best interests at heart.

“Our priority remains to simplify banking while maintaining security and an excellent client experience,” the bank said in a statement. “Any new service we consider must align with those values.”

Capitec’s entry into the programme would be a major win for the DHA, considering the bank serves more than a third of the South African population and operates the country’s largest branch footprint—with over 860 branches.

What’s Changed Since Capitec Initially Opted Out?

When the Smart ID pilot began, Capitec declined to participate, citing concerns about the logistics of hosting DHA staff and systems inside its branches. The setup would have required Capitec to allocate limited space to non-banking services and potentially confuse customers if government systems failed.

Other banks, including Absa, FNB, Standard Bank, and Nedbank, raised similar concerns during the trial, fearing reputational damage from system downtimes that were out of their control.

But the DHA has since made significant progress in addressing these challenges. It now plans to deploy a more reliable “live capture” system and source private tech solutions instead of relying on state-owned service provider SITA, which has often been blamed for outages.

A Potential Game-Changer for Identity Services

The DHA’s strategic plan through to 2030 outlines its ambition to make Smart ID and passport services available at 1,000 bank branches, with 100 to be operational within the current financial year.

Capitec’s participation could dramatically accelerate the rollout and improve access for millions of South Africans—especially in under-served areas where Capitec’s presence is strong.

Another innovation being considered is the integration of Home Affairs’ eHomeAffairs platform into banking apps. This would allow users to apply for documents or manage appointments directly from their bank’s digital platform—a move welcomed by the banks already on board.

Capitec Moves with Caution—But Hope

While there is still no firm commitment from Capitec, the tone has changed significantly from a flat “no” to a cautious “maybe.” Much depends on whether the DHA can deliver a reliable, customer-friendly system that won’t compromise Capitec’s operational model.

For now, South Africans should keep an eye on developments. If a deal is reached, applying for a Smart ID or passport at your local Capitec branch may soon become a reality.

{Source: The Citizen}

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