Bank Zero has been granted a provisional licence after an evaluation by the South African Reserve Bank. The 45% black-owned bank is set to launch in the fourth quarter of 2018, it said in a statement on Tuesday. Bank Zero will use a mutual bank licence. The mutual banking concept mirrors current social media trends and benefits customers by allowing for the support and creation of financial communities, said the statement.

"It also provides for a capital-efficient framework, and Bank Zero will be sharing the subsequent cost benefits with its customers (both businesses and individuals)."  Founded by tech entrepreneur Michael Jordaan, the former CEO of FNB, and banking innovator Yatin Narsai – Bank Zero will offer what it calls a ‘unique and fresh approach to banking without any legacy systems which can be costly to maintain’.  “Facebook, WhatsApp, Twitter and Instagram are the new normal for societies. Why shouldn’t banks also innovate in this era of wider connectedness whilst still ensuring a robust banking value proposition?” asked Jordaan in a statement.