The Department of Women, Youth and Persons with Disabilities (DWYPD) is making progress on its plan to create a new cooperative bank in South Africa. <\/p>\n\n\n\n
The bank, which has the proposed name of the SA Innovative Financial Services Cooperative (SAIFSC), will be more akin to a formalised stokvel than a mutual or commercialised bank.<\/p>\n\n\n\n
Cooperative banks are more conservative in nature and invest the members’ money into secure funding and government bonds instead of riskier stock exchanges. <\/p>\n\n\n\n
They also differ from mutual banks as they operate under a common bond, either as a group of people that work together or belong to a particular association or a specific geographical area.<\/p>\n\n\n\n
As the department’s name suggests, the bank aims to advance the inclusion of women, youth, persons with disabilities, and their businesses and other co-operatives into the broader financial system. The target customers are also based in rural areas. <\/p>\n\n\n\n
After meeting with the Prudential Authority (PA), the DWYPD submitted its application package and supporting documents, such as a membership registration file, bank statements and business plan, on January 3. <\/p>\n\n\n\n
The DWYPD is waiting for the PA’s vetting process to be concluded before it gets the necessary licence. <\/p>\n\n\n\n
The bank plans to commence operations in July 2024<\/strong>, offering savings and investment products. <\/p>\n\n\n\n The DWYPD said that there are currently four savings products and four credit products. <\/p>\n\n\n\n Currently, the bank has only 461 members and a bank balance of R278,698, which the department admitted is quite low. <\/p>\n\n\n\n However, with a “limitless” potential, the department will undergo an extensive recruitment process to get more members when it gets its licence and launches the bank. <\/p>\n\n\n\n The DWYPD’s presentation to the Multi-Party Women\u2019s Caucus can be found below: <\/p>\n\n\n\n