What maketh a #BlackBank?
ABSIP Roundtable Discussion: ‘Black Banks’ in South Africa
Keynote speaker:
Treasurer General of the ANC, CDE Paul Mashatile
Panelists:
CEO, African Bank: Basani Maluleke
CEO, National Empowerment Fund (NEF): Philisiwe Mthethwa
Deputy Governor, South African Reserve Bank (SARB): Kuben Naidoo
Managing Director, Banking Association South Africa (BASA): Cas Coovadia
The Investment arm of NUMSA and COSATU was in attendance as well as personnel from Ithala and UBank.
ANC Treasurer General highlighted the inclusion of black participants within the mainstream and not the peripheries of the economy. It is important that we bring those who are on the outskirts of the economy to the centre of economic participation through providing adequate access to funding to those wanting to do business. The key element here, of course, is capital and nearing the people’s proximity to funding. It is also of upmost importance to provide banking services to the unbanked. Black ownership within business also encompasses adequate management, black management.
And that is my short answer to what maketh a ‘Black Bank’:
The Black Bank is one that services the people that reside on the outskirts of the economy by being incredible transparency in pricing. The success of Capitec was largely due to its low banking fees in an environment where clients were highly unlikely to change banks, more especially a move to a smaller bank, this shows the need people have for banking fees and products that are sensible to the customer being serviced.
South Africa needs to conceptualise the (banking) products it needs. At the end of, the responsibility to change South Africa does not rest with the banks/ business. Business’ main objective is to increase shareholder value as with any other commercial entity.
NEF CEO Philisiwe Mthethwa raised a curious suggestion: A development funding agency, such as the NEF, could perhaps fund this bank, maybe 5% of government deposits may be transferred to the black bank?
With more than R7 million in deposits, SA Reserve Bank Deputy Govenor Ruben Naidoo is confident of a Post Bank full banking licence approval this year while tech has reduced the costs of entry; possibly eradicating the need for ATMs. My very brief view of the Black Bank.
