Bank Zero has officially implemented its EFT payments capabilities and started full end-to-end beta testing ahead of the bank’s launch in the second half of 2019.
Bank Zero is now processing payments and debit orders efficiently and securely, as well as facilitating purchases of prepaid items such as data, airtime and electricity.
Michael Jordaan, co-founder and chair of Bank Zero, comments: “South Africa is a world leader in electronic payments yet customers seldomly experience this power, as it requires a modern core banking system to leverage this.
“It’s exciting that all staff are part of this first wave of beta testing.”
After successful staff beta testing, external beta customers will be invited gradually from a database of individuals and businesses who have volunteered.
Bank Zero aims to provide businesses with a higher degree of protection from fraud. It also plans to offer lower banking fees and integration with Xero Accounting software.
Bank Zero’s ‘check account’ will provide realtime checking and control of money; and all Bank Zero customers will have access to all features.
Yatin Narsai, co-founder and CEO of Bank Zero, explains: “Why shouldn’t banking be a joyful, exciting and safe experience? After all it’s your money.”
Bank Zero is now a ‘clearing bank’ in addition to being a ‘settlement bank’, having received a banking licence and been integrated directly into the systems of the South African Reserve Bank.
“Getting the calculus right on our core banking system was vital,” says Yatin. “This quick and agile delivery validates our brave and bold strategic choices.”
He adds: “Prudent use of capital requires that accurate business blueprints are delivered from the get-go. This approach enables us to bring a revolutionary new core banking system to market with pervasive encryption and digital scaling. It is fundamental to our low-cost, high-capability offering.”
He adds that a pricing-based strategy is important but it can’t end there. “Bank Zero will deliver much-needed solutions, and integral to its core banking system is its app and ecosystem,” Yatin says.
Further innovation will come from Bank Zero driving and nurturing a savings culture through smartly integrated financial help and the rise of “digital fluency”.
The next step will be for Bank Zero to start implementing its patented card technology.
Yatin explains: “The ubiquitous card has dominated spending for decades – but this ‘a card is a card’ approach is strategically flawed. Bank Zero will bring advancements and convenience by focusing specifically on security and control.
“The trauma of card skimming and other rogue methods of recording card details will be a thing of the past at Bank Zero. The alarming trend of rogue online stores bypassing OTP-based security will also be prevented.
“The 16-digit card number no longer needs to change each time a card is replaced. This means card details for digital services (such as Netflix or Uber) don’t have to be reset. Also, customers will be able to make QR payments via platforms such as Zapper or SnapScan, as well as mobile-based NFC payments.”
Full public operations are expected to start in the second half of 2019.