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Postbank encouraged to become South Africa’s state-owned bank

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The Select Committee on Public Enterprises and Communications has urged the bank to accelerate its banking licence application process

The Select Committee on Public Enterprises and Communications has urged Postbank to accelerate its banking licence application process to offer full range of financial services. The application will enable the bank to provide services without any restrictions, media reports said. 

It is reported that Postbank has notified the parliament that its financial position is expected to decline over the next two years. The decline is on the basis of capacitation and modernisation plans for that upcoming period.  It seems that the pandemic has had a serious impact on the bank, especially in terms of its risk profile across all types. This can be attributed to loss of jobs resulting in low potential to save and invest in Postbank’s financial products.

More recently, the bank in collaboration with the Post Office developed an electronic voucher payment system for SASSA recipients. It is reported that the electronic voucher payment system will allow recipients to cash their vouchers at retail outlets. 

Minister of Communications and Digital Technologies Stella Ndabeni-Abrahams, told the media, “Last week, Cabinet announced the appointment of non-executive directors of the Postbank and Post Office respectively.” However, the bank had reported growth during lockdown in South Africa as a result of opening beneficiary accounts for the Covid-19 unemployment relief fund.” 

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