Bank Zero has taken a big step closer to launching – here’s how it’s different from other SA banks

A government gazette published on Friday (7 September) confirmed that Bank Zero has officially been registered as a Mutual Bank in South Africa.

According to the notice, the registration officially took effect from 17 August 2018 – indicating that it’s on track to meet it early 2019 launch date.

In a statement in January, Bank Zero said it will make use of a mutual bank licence, which mirrors current social media trends and benefits customers by allowing for the support and creation of financial communities.

Mutual banks, or mutual savings banks, are banks that typically operate without capital stock, and is owned by its members who subscribe to a common fund.

This, the bank said, will provide for a capital-efficient framework, and Bank Zero will be sharing the subsequent cost benefits with its customers (both businesses and individuals).

“Facebook, WhatsApp, Twitter and Instagram are the new normal for societies,” Michael Jordaan said at the time.

“Why shouldn’t banks also innovate in this era of wider connectedness whilst still ensuring a robust banking value proposition? Bank Zero is addressing these realities while employing cutting-edge technologies and delivering state-of-the-art security.”

As such Bank Zero will not offer credit, will be entirely digital, and will handle all of its services and communications via an app.

In this way, it is going against the traditional banking grain, and targeting a younger, more tech-savvy market that wants to do their banking the same way they interact with other digital media.

• There will be no branches.
• To access cash, customers can use ATMs locally and internationally. Cash-out at major local retailers will also be available.
• All processes have been designed from the ground up with digital interaction in mind.
• All communication will be app-driven. Email communication will also be available.
• Customers can become shareholders, based on the type of savings products they have.

While no major new information has been released since the announcement of Bank Zero in January this year, Jordaan has indicated on social media that the bank will launch in early 2019.

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