Former FNB boss Jordaan takes step towards launching new bank

Backed by ex-FNB CEO Michael Jordaan‚ Bank Zero looks set to become SA’s newest mutual bank and will be 45% black-owned.

Co-founded by Jordaan and former FNB executive Yatin Narsai‚ Bank Zero has been granted a provisional licence after a “rigorous evaluation” by the Reserve Bank‚ the bank said in a statement on its website on Tuesday.

It planned to launch in the fourth quarter of 2018‚ making use of a mutual bank licence and serving both individuals and businesses. The bank‚ which is likely to be a digital play‚ said it had a team with “extensive experience and knowledge of banking through their previous specialist roles in financial services”.

If Bank Zero is granted a permanent licence‚ it will become SA’s fourth mutual bank‚ alongside Finbond‚ GBS and VBS‚ according to the Reserve Bank’s website. Mutual banks are subject to the Mutual Banks Act and do not offer a full suite of banking products‚ as with commercial banks like Standard Bank and Absa.

“The mutual banking concept mirrors current social media trends and benefits customers by allowing for the support and creation of financial communities‚” Bank Zero said.

“It also provides for a capital efficient framework‚ and Bank Zero will be sharing the subsequent cost benefits with its customers.”

If Bank Zero manages to launch this year‚ it will be joining Discovery Bank‚ TYME and Post Bank as SA’s first new banks in more than a decade.

“Bank Zero is the newest citizen in South Africa’s banking world‚ pivotal to the new banking revolution‚” it said on its website.

Bank Zero said it would “offer a unique and fresh approach to banking without any legacy systems which can be costly to maintain”.

“Bank Zero is part of the new frontier of banking‚ which has arrived through smartphones and associated digital technologies‚” Narsai said.

By: Hanna Ziady -BusinessLIVE

Source: TMG Digital.

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