Postbank awaiting full banking licence: report

Postbank has submitted its final application for a full banking licence to the Reserve Bank, bringing it another step closer to becoming a fully-fledged bank, according to a report by BusinessDay.

The section 16 licence will allow Postbank, which currently allows only for deposits, to begin lending money.

Post Office CEO Mark Barnes had previously indicated that this will allow the new bank to target lending to the informal economy, such as spaza shops and homeowners without title deeds.

In May, Telecommunications minister Siyabonga Cwele indicated that the South Africa Post Office’s transition into a development bank will be government’s first big step in radically transforming the financial sector and challenging the current ‘big four’ banking institutions.

“It’s not going to be a normal bank like the big four. It’s going to be a developmental bank to deal with the market that is not being served at the moment,” said Cwele.

The new Post Office bank is expected to be joined by a new Discovery-headed bank in 2018.

In March this year, Discovery confirmed it had received authorisation from the Registrar of Banks to establish banking operations in South Africa, and was on track to launch its banking products next year.

Read: SA Post Office appoints chief operating officer

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Postbank awaiting full banking licence: report