Michael Jordaan and Yatin Narsai will launch an app-driven bank that “offers added control and transparency”.
Called Bank Zero, the new bank has been granted a provisional licence after an evaluation process by the South African Reserve Bank.
“The 45% black-owned bank is set to launch in the fourth quarter of 2018,” stated the company.
“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.”
“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.
“Bank Zero will offer a unique and fresh approach to banking without any legacy systems which can be costly to maintain.”
It is part of the “new frontier of banking which has arrived through smartphones and associated digital technologies”, said Narsai.
FAQs from the bank’s website state the following:
- There will be no branches.
- To access cash, customers can use ATMs locally and internationally. Cash-out at major local retailers will also be available.
- All processes have been designed from the ground up with digital interaction in mind.
- All communication will be app-driven. Email communication will also be available.
- Customers can become shareholders, based on the type of savings products they have.
Jordaan and Narsai previously worked together in building FNB into the “most innovative bank in the world”, stated the company.