[LISTEN] SA's brand-new bank - Bank Zero Mutual Bank

Founded by Michael Jordaan, former chief executive of First National Bank, Bank Zero started its first trial run for staff members on Tuesday after the South African Reserve Bank granted its banking license.

JOHANNESBURG - Founded by Michael Jordaan, former chief executive of First National Bank, Bank Zero started its first trial run for staff members on Tuesday after the South African Reserve Bank (SARB) granted its banking license and it successfully integrated its systems with those of the SARB.

The bank is 45% black-owned and 20% women-owned.

Speaking on The Money Show, Jordaan said it was difficult starting the business.

“It was quite tough. It’s taken us a year and a half to get here… we’re proud we now have a licence… hopefully, we can launch towards the middle of 2019.”

Jordaan said they plan to attack the market with much lower fees compared to their already existing competitors.

“Our customers will also be able to become shareholders in Bank Zero Mutual Bank.”

Jordaan says rules on becoming an investor will be communicated upon launch.

Listen to the audio above for more.

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