Bank Zero, an app-driven bank, has secured a provisional banking licence from the South African Reserve Bank (SARB).
The bank, co-founded by former First National Bank (FNB) executives Michael Jordaan and Yatin Narsai, is expected to commence operations in the fourth quarter of 2018.
The lender will operate under a mutual bank licence and promises to offer simplified fee structures. It will focus on transactional banking and deposits.
The bank aims to build a customer base by offering the support and creation of connected financial communities, from families to clubs and societies.
Jordaan said that the bank’s offerings will be in line with modern day realities.
“Facebook, WhatsApp, Twitter and Instagram are the new normal for societies. Why shouldn’t banks also innovate in this era of wider connectedness whilst still ensuring a robust banking value proposition,” Jordaan added.
Recently, SARB has also issued banking licences to insurer Discovery, Tyme Digital by Australia’s Commonwealth Bank, and Post Bank.