Financial services supremo Michael Jordaan launches app-based bank

Former FNB CEO Michael Jordaan is once again revolutionising the banking sector with the launch of Bank Zero - a 45% black-owned app-driven bank

Former FNB CEO Michael Jordaan is once again revolutionising the banking sector with the launch of Bank Zero – a 45% black-owned app-driven bank.

The bank – founded by tech entrepreneur Jordaan and banking innovator Yatin Narsai –is set to launch towards the end of the year after securing a provisional mutual banking licence from the Reserve Bank.

In a statement released on Tuesday, Bank Zero says that the mutual banking concept mirrors current social media trends and benefits customers by allowing for the support and creation of financial communities.

The business partners, whose leadership was instrumental to FNB’s meteoric rise to one of the most innovative banks in the world, believe that technological advances give entrepreneurs plenty of scope to tap into new markets, while at the same time cutting costs, through social media platforms.

“Facebook, WhatsApp, Twitter and Instagram are the new normal for societies. Why shouldn’t banks also innovate in this era of wider connectedness, while 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,” Jordan says.

Bank Zero is part of the new frontier of banking which has arrived through smartphones and associated digital technologies, says Narsai, co-founder and CEO.

“Beyond the mobile technology revolution, other innovations will bring more financial transparency and control to our customers in an intuitive, secure and affordable way. 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.”