Bank Zero, which was founded by former FNB CEO Michael Jordan, announced on Tuesday that it has started trial runs for its App-driven bank.
Bank Zero remains prudent with its capital.
“Alpha testing is a major achievement – most institutions invest billions just to get here,” said Yatin Narsai, co-founder and CEO.
Alpha testing involves a small team validating the end-to-end live systems and processes.
In August, Bank Zero was registered as a mutual bank.
During September 2018, Bank Zero integrated with the national payments systems of the South African Reserve Bank, a move that will bring major benefits to customers.
Lezanne Human, co-founder and executive director, explains, “Settling directly with the SARB rather than through a ‘sponsoring bank’ enables us to participate directly with peer banks in the movement of money. We now have the ability to control our payments value chain, which forms a powerful foundation for innovative and cost-efficient offerings.”
Bank Zero Mutual Bank is more than 45% black-owned and 20% women-owned.
“The stringent licencing process, the high standards, and their skilled and professional approach clearly demonstrate that South Africa has a world-class regulator,” said Jordaan, co-founder, and chairperson of Bank Zero.
Strategic collaboration plays a big role at Bank Zero – two of those collaborations are with Mastercard and IBM.
Mastercard and Bank Zero are currently developing a “new generation of card” to deliver cutting-edge security and other unique features.
“Building a bank is hard work; building an innovative bank is exponentially harder,” says Jordan. “The Bank Zero build-out continues, and after implementing additional payment rails (such as card transacting), Beta testing will start during quarter one of 2019. Public operations are expected to start around mid-2019.”