South Africa’s new bank with 2,500 branches sets the record straight
Pepkor has denied media reports that it is in talks with Standard Bank over a personal banking tie-up.
The retailer sent a SENS announcement in response to media reports that Standard Bank and Pepkor are in talks over a personal banking tie-up.
Pepkor confirmed that it is not engaged with Standard Bank or any other bank over a personal banking tie-up or any other strategic partnership. It was previously believed to be working with Investec.
Pepkor said it remained focused on developing its banking offering, which is a crucial part of its broader financial services strategy.
It said that it will continue to pursue the establishment of an independent bank within the required regulatory framework.
Pepkor acquired approval from the Prudential Authority in November, allowing it to enter South Africa’s competitive banking sector.
The move into banking is supported by its retail giant’s acquisition of fintech software provider Cloudbadger.
While many new banks in South Africa, including GoTyme Bank, Bank Zero, Discovery Bank and OM Bank, are digital banks with limited physical presence, this is not the case for Pep.
The group has over 2,500 outlets across South Africa, giving it a massive network of bank services. The bank is expected to launch next year.
The retailer has been heavily pushing into fintech and recently announced plans to merge its Flash business with Shop2Shop to create a massive fintech platform valued at R21.3 billion.
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