What Capitec says about Smart ID and passport services at its branches

South Africa’s biggest bank by customers, Capitec, says it has been approached by the Department of Home Affairs to be a part of its planned rollout of Smart ID and passport services to bank branches.

However, the group said that, while it is currently engaging in “productive discussions” with the department, it cannot confirm any plans beyond that.

This comes has South Africa’s major banks have thrown their support behind the DHA’s ambitious plans to roll out these services to over 1,000 bank branches in the coming years, and to integrate these services with digital channels.

Capitec said that, however it proceeds, it will be with its customers in mind.

“As always, our priority is to ensure that any service we offer aligns with our commitment to making banking simpler and more accessible for South Africans, while maintaining the highest standards of security, efficiency, and client experience,” it said.

Most of South Africa’s big banks — including Absa, Standard Bank, FNB and Nedbank — have been part of the decade-long Smart ID trial, and have committed to adding more branches once the project formally launches.

The project has even drawn participation from exclusive banks, like Investec, and digital-only platforms like Discovery Bank.

However, Capitec, which has the largest branch network in the country — and thus the widest potential reach for the services — has been conspicuously absent.

When the pilot project launched in 2015, Capitec said it had no interest in being a part of the rollout, primarlily due to how the in-branch setup would work.

The project saw the Department of Home Affairs effectively set up a “satellite” office within the banks, staffed by DHA employees and working on DHA systems.

At the time, Capitec said that it was not an integrated system, and its branch consultants would be split between serving banking customers and DHA customers.

It would have also needed to dedicate limited branch space to non-Capitec clients and services.

Over the years, whenever asked about being part of the project, Capitec has said the service does not align with its branch setup and customer service goals.

During the pilot, many banks also voiced concerns about service levels and the resultant reputational damage this would have on their brands.

For example, if Home Affairs services were down, as was frequently the case, clients could potentially see it as a failing of the specific bank branch, not the DHA, even though the banks had no control over this.

This was said to be a key factor delaying the full launch of the project.

While the pilot project structure has not changed much over the last 10 years, the DHA is now on a much stronger push towards integration and digitisation, which may switch things up entirely.

Home Affairs has big plans for Smart IDs and Passports

In its latest Strategic Plan through to 2030, the DHA said it intends to roll out Smart ID and passport services to 1,000 bank branches, starting with 100 in the current financial year.

Behind the rapid rollout is a newer ‘live capture’ system the department intends to use, as well as a move to source private IT systems and technology, sidelining the state-owned SITA.

Resolving downtime and potential service faults could be the key to getting more banks, including Capitec, on board.

Securing a deal with Capitec to join the project would be an immense boost for the DHA, as the group banks over a third of South Africa’s population.

An analysis of the FY2024 data from the banks shows that the major banks have a physical branch network of over 3,300 branches.

However, without Capitec, this is lower at 2,400 branches.

Another key to getting the bank on board may lie in the plan to integrate the DHA eHome Affairs platform into various banking apps to make it even more convenient for customers.

The banks already participating in DHA’s Smart ID and Passport services said that they would support any measure that made things more convenient for customers.