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SA Post Office wants to be a bank by mid-2017

SA Post Office wants to be a bank by mid-2017

The South African Post Office (Sapo) has submitted documents to Parliament indicating that it will apply to formalise its position as a fully-fledged bank by the middle of the year.

According to Reuters, Sapo said it woul submit an application to register its financial services unit, Postbank, as a bank by July 3rd, 2017.

In July 2016, the South African Reserve Bank (Sarb) gave Postbank the green light to pursue its banking goals by approving its application for a banking licence.

Subsequent steps in the process involve the approval of the Postbank board nominees, the registration of the bank as a company and the transfer of business from Sapo to the new company.

Speaking on the bank’s licence approval last year, minister of telecommunications Siyabonga Cwele said that the bank would not compete with South Africa’s other commercial banks, and will instead focus on pushing government’s development programmes.

As a bank, it is expected to tap post office retail outlets across the country, turning them into branches. The Postbank is also set to become a subsidiary of Sapo but with its own governing structure.

Postbank has R1.4 billion rand in excess capital, which is enough to meet regulatory minimum requirements for a bank, Reuters reported.

To date, Postbank has served primarily as a deposit bank (savings bank), but legislation passed in 2010 allowed for the bank to offer transactional facilities.

Read: SA Post Office a step closer to banking licence

BusinessTech's Staff Writer is directly plugged into the South African Internet backbone, and spits out press releases and other news as they receive it. They are believed to be cl...
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  • Khalsa S

    SA Post Office wants to be a bank by mid-2017”

    And by when does it plan to be a post office ?

    • brz

      A very astute remark. The country needs a working postal system, not another bank.

    • Aristophanes

      Quite right – when Xmas cards from the UK paid for Air mail and posted early December take seven weeks to arrive, then the thought of these palookas trying to run a bank should turn every potential customer’s blood cold.

    • Blapartheid Zulu

      They can’t even keep or deliver your parcels and now they want to safe keep your money? It’s like the SOE wanting to nationalize everything, oh wait……

    • I agree, but being a Post Office only is not a long-term viable solution, and the new CEO who seems to be knowledgeable, experienced and competent knows it, for several reasons:

      – The constants strikes, downtime, poor service delivery, theft and corruption has given the PO a very poor reputation, and hence they are never used for important things which generate higher revenue and profits.
      – The above has resulted in alternate services flourishing in the market at very competitive price points and efficiency levels, in the form of alternate postal services and couriers
      – Email and the internet has done away with most forms of document delivery.
      – Many people ignore their post boxes due to receiving lots of unsolicited spam and adverts that magically find their way into your post box, as well as the spam from e-toll and traffic fines. I know lots of people who don’t ever sign for or collect registered mail, because most of the time it is traffic fines, and acknowledging receipt of the registered mail means you can’t claim that you never received the fine.

      So all in all, if the PO plans to survive in the long-term, they need to diversify. Fixing basic postal services on its own, even if done very well, won’t be enough. I don’t think diversifying into banking is a good option either. I just hope the new CEO has thought this through and has the support and backing of his peers, team and government. He undoubtedly has one of the worst jobs in the country, but he sounds like the type of guy who enjoys a challenge.

      • Khalsa S

        Assuming ure not a troll or a total braindead Rtard…….. I will bite.

        SA Post is supposed to be a post office. Its the only major one in the country and there is actually huge demand.
        Diversification in the postal industry involves things like courier services, logistics and supplies……its called horizontal diversification and you do so only after saturing your existing market.

        Banking is a separate and consolidated value chain and very few companies in the real world pull off managing 2 value chains.
        SA Post cant even manage their own where they have no competition.

  • Conraad Bezuidenhout

    They need to be a bank because they run out of money being a post office and figure being a bank gets you more capital rofl……………

  • Magic Mushroom

    Cant even manage a piece of paper folded into another piece of paper, can you imagine when all the paper with numbers on it hits the counter, im sure they are going to lose a lot of that paper as well, lol…..

  • Swona

    Well ABSA is British blue so, why not.

    • Aristophanes

      You’re being ironic again, aren’t you?!

  • victory

    Another African bank

  • Hiren Patel

    Not sure who their market would be, with Capitec and Discovery on the way, it’ll be tough competition, especially given nobody will trust a bank by SA post office.

  • Deal_with__it

    No one will ever get money because their systems are permanently offline.

    This is the post office that is so backward that you have to pay with cash for everything.

    • Peter

      Correct, they can’t even accept bloody debit or credit cards but now want to run a bank. Honestly, who on earth will trust them with their banking when they can’t even get a letter from A to B.

  • Hennie

    Bank financed by the tax payers. It will never go bankrupt like SAA. Do they have business leaders to run a bank? Or will it fail like the PO.


    Epic Fail

  • Erlo Muhl

    Wow a bank and they cannot even deliver ones post. From every day ones post in the olden days to once in three or 6 weeks, with all modern amenities available nowadays. Is it possible to perform worse and now they intended to be a bank? Who will support such a bank?

  • Lone Stranger

    Another African Bank basket case. Lovely.

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