South Africa’s central bank injected R7 billion into African Bank as part of a bailout plan in exchange for bank’s bad loan portfolio and 50% stake, media reports said. Deputy Governor Kuben Naidoo told Reuters, “It is not the intention of the Reserve Bank to own the share for a very long time but we do want to ensure that the bank is sound and stable before we exit. So probably in the next year or two the Reserve Bank will be looking to dispose of its stake.”

The Prudential Authority which is responsible for regulating banks in its annual report found that Absa, FirstRand, Nedbank, Standard Bank, and Capitec Bank control 90.5 percent of South Africa’s banking assets as of March 31.International banks control 5.6 percent of the remaining market, 3.8 percent is owned by the rest, the report said. Standard Bank retained the top position in 2019 rankings with $9.8 billion. FirstRand bank stood second in the ranking followed by Absa and Nedbank. 

“We think that this is very positive. We think it will promote competition and it will promote financial inclusion” Naidoo said. “So we’re quite excited about new players, some of them using new technologies to enter the sector.”

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MyWORLD will offer customers in South Africa a seamless banking experience through shared banking. Up to five accounts can be opened under the main account, with no additional monthly fees on any of these accounts.

According to African Bank’s press release, a primary account holder of MyWORLD will get access to a primary account and two types of pockets: Power Pocket and Savings Pocket.

Power Pocket is particularly unique because it is the first in the industry to offer full transaction capability. The pocket will have its own account number, debit card, and PIN. Users can earn 5.5 percent interest per annum on positive balances.

That said, the Savings Pocket allows the primary account holder to save at 6.5 percent interest, which is South Africa’s best interest rate.  CEO of African Bank, Basani Maluleke, said in a statement, “Our increased and diversified product offering, underpinned by our Omni-channel platform, will enable us to compete favourably against the established and emerging banks.”

The bank said, “This functionality can be utilised by informal savings clubs, church groups and any collection of people wishing to save together for a shared trip or activity.”

MyWORLD operates on African Bank’s omni-channel platform. Account holders can effortlessly access and manage accounts through  the website, app, smartphones, bank’s branches and contact center.

The only requirement is that anyone interested to open an account must visit the branch to generate and receive their MyWORLD debit card.

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