Former First National Bank CEO Michael Jordaan on Tuesday revealed in a tweet that he is backing a new digital-only bank, called Bank Zero, to be launched in South Africa later this year.
In a post on Bank Zero’s newly launched website, the venture revealed that it has secured a mutual bank licence following a “rigorous and in-depth evaluation process” by the Reserve Bank.
“The mutual banking concept mirrors current social media trends and benefits customers by allowing for the support and creation of financial communities,” it said. “It also provides for a capital-efficient framework, and Bank Zero will be sharing the subsequent cost benefits with its customers (both businesses and individuals).”
The 45% black-owned bank is set for launch in the fourth quarter of 2018. It will be an “app-driven bank that offers added control and transparency, and a fresh take on banking”, it added.
Bank Zero was founded by Jordaan — who is a now a technology investor based in Stellenbosch — and by Yatin Narsai, who worked with Jordaan at FNB for 10 years.
They want to build a bank “without any legacy systems that can be costly to maintain”, they said in the statement.
It’s the first time that Jordaan has invested in a venture that looks set to compete directly with his former employer.
In the statement, Jordaan said: “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? Bank Zero is addressing these realities, while employing cutting-edge technologies and delivering state-of-the-art security.”
“Bank Zero is part of the new frontier of banking which has arrived through smartphones and associated digital technologies,” said Narsai. “Beyond the mobile technology revolution, other innovations will bring more financial transparency and control to our customers in an intuitive, secure and affordable way.” — (c) 2018 NewsCentral Media
