Mutual banks are subject to the Mutual Banks Act [what is this – explain], and lack the product offering that seen in major South African institutions like Standard Bank and Absa.
Co-founded by FNB ex-CEO Michael Jordaan and former FNB executive, Yatin Narsai, the bank will be app-driven and 45% black owned.
“The mutual banking concept mirrors current social media trends and benefits customers by allowing for the support and creation of financial communities,” Bank Zero said on its website. “It also provides for a capital efficient framework, and Bank Zero will be sharing the subsequent cost benefits with its customers.”
Bank Zero is planning to launch at some point in Q4 this year, catering both individuals and businesses through its mutual banking licence.
The other three South African mutual banks are Finbond, GBS and VBS.
In the past decade, there have only been three banks founded in South Africa: Discovery Bank, TYME and Post Bank. Discovery Bank is card-driven and largely online, while Post Bank was created as an affordable bank to help South Africans save money. Read more about TYME here.
“Bank Zero is the newest citizen in SA’s banking world, pivotal to the new banking revolution,” it said on its website.