A new app-driven bank is set to launch in South Africa after getting a provisional licence from monetary authorities, the institution said on Tuesday.
Bank Zero, a 45 percent black-owned mutual bank founded by veteran bankers Michael Jordaan and Yatin Narsai, is set to launch in the fourth quarter of 2018.
“The bank will make use of a mutual bank licence, a concept which mirrors current social media trends and benefits customers by allowing for the support and creation of financial communities,” it said in a statement.
“It also provides for a capital-efficient framework, and Bank Zero will be sharing the subsequent cost benefits with its customers (both businesses and individuals).”
Jordaan and Narsai are both former executives at First National Bank who helped build its reputation is one of the most innovative in the country.
Jordaan, who is chairman of the new bank, said businesses, individuals, families and communities would benefit through its products and services which were in tune with modern-day realities.
“Facebook, WhatsApp, Twitter and Instagram are the new normal for societies. Why shouldn’t banks also innovate in this era of wider connectedness whilst still ensuring a robust banking value proposition?” he said.
“Bank Zero is addressing these realities, while employing cutting-edge technologies, minimising typical admin-intensive processes and delivering state-of-the-art security.”