Image: co-founder and Chairman of Bank Zero, Michael Jordaan.

CAPE TOWN - A new Bank called Bank Zero will soon be operating in South Africa.

 Bank Zero, a 45% black-owned mutual bank, is set to launch in the fourth quarter of 2018 by FNB's ex-CEO Michael Jordaan and banking innovator Yatin Narsai.

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The bank will be app-driven and all communication will be done via the app. 

Email communication will also be available.

The new bank was granted a provisional licence after an evaluation process by the South African Reserve Bank.

“Bank Zero will make use of a mutual bank licence. The mutual banking concept mirrors current social media trends and benefits customers by allowing for the support and creation of financial communities.” said the company. 

What makes Bank Zero different to many is that the bank will have no branches. 

In order to have access to money, customers can use ATMs locally and internationally. Cash-out at local retailers will also be available.

“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,” said Bank Zero.

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"Businesses, individuals, families and communities will benefit through Bank Zero’s products and services which are in tune with modern-day realities", says co-founder and Chairman, Michael Jordaan. 

“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, minimising typical admin-intensive processes and delivering state-of-the-art security", adds Jordaan. 

"Bank Zero is part of the new frontier of banking which has arrived through smartphones and associated digital technologies", says co-founder and CEO Yatin 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,” he adds. “Coupled with the mutual banking concept, this will help nurture a savings culture in South Africa. New technologies, together with tried-and-tested account features like chip-and-pin cards, will deliver real value to our customers”, adds Narsai.