Bank Zero

Last updated
Bank Zero
Company type Private
Industry
Founded2021;5 years ago (2021)
FounderMichael Jordaan
Yatin Narsai [1]
Headquarters Sandton, South Africa [2]
Area served
South Africa
Key people
Michael Jordaan (Chairman)
Yatin Narsai (CEO) [3]
Products Financial services
Owner Lesaka Technologies
Website bankzero.co.za

Bank Zero is a South African digital mutual bank, [4] owned by local fintech company Lesaka Technologies since 2025. [5]

Contents

Headquartered in Sandton, Gauteng, the bank provides commercial and corporate financial services. [6] Bank Zero registered with the South African Reserve Bank in 2018, and launched in 2021. [7] [8] [9] [10]

History

Bank Zero was co-founded in 2018, by Michael Jordaan and Yatin Narsai. [11] By the end of 2018, after integration with the South African Reserve Bank, Bank Zero was a full settlement bank.

In early 2019, Bank Zero integrated into the rest of the South African national payments system [12] to become a full clearing bank with an independent licence. [13]

In November 2019, Bank Zero announced a patented debit card, obtained with an agreement with MasterCard, and combined with Bank Zero's in-house, patented security procedures. [14] [15] Instead of storing the card number that is embossed on the card on both the magnetic stripe, and in the card chip, the debit card would have three different card numbers for each: the embossed number, the magnetic strip, and the card chip. [15]

Doing so would allow Bank Zero to limit specific types of transactions to each card number. For example, the magnetic strip card number could only be used at an ATM and at a point-of-sale terminal; the card chip card number could only be used at point-of-sale devices; and, the embossed number could only be used for online transactions. [15] The bank said the new card would dramatically minimize the negative impact of card data theft and card skimming. [15]

While Bank Zero had originally planned to soft launch some of its products at the end of 2019, the company decided to delay its launch to 2020. [7] [8] After disruptions due to the COVID-19 pandemic, the bank's launch was further delayed, until 2021. [10] [16]

In June 2025, Lesaka Technologies (formerly Net1 UEPS Technologies) acquired Bank Zero for R1.091 billion. [17]

Operations

The bank is 45% black-owned and 20% female-owned. [18] Instead of outsourcing traditional pre-ready banking packages, Bank Zero relies on a core banking platform. [13]

Bank Zero uses IBM Z mainframe computers and LinuxONE, [19] as a secure platform that can protect against data breaches with IBM's Secure Service Container. [20]

See also

References

  1. ↑ "End of an era for Michael Jordaan-backed bank in South Africa". BusinessTech. 18 November 2025. Retrieved 23 January 2026.
  2. ↑ "Mutual Banks" (PDF). The South African Reserve Bank. 2024. Retrieved 23 January 2026.
  3. ↑ Jan Vermeulen (21 July 2025). "The former South African banking CEO who created two billion-rand tech companies". MyBroadband. Retrieved 23 January 2026.
  4. ↑ "South African fintech Lesaka to buy Bank Zero in digital banking push". Retail Banker International. 30 June 2025. Retrieved 23 January 2026.
  5. ↑ Liesl Peyper (27 June 2025). "Lesaka scoops up Bank Zero for R1.09bn". Moneyweb. Retrieved 23 January 2026.
  6. ↑ Mungadze, Samuel (2019-11-13). "Countdown begins for Michael Jordaan's Bank Zero launch". ITWeb. Retrieved 2019-11-14.
  7. 1 2 "Bank Zero will launch business offering with personal account in 2020". BusinessLIVE. Retrieved 2021-06-18.
  8. 1 2 "Bank Zero says it's set to launch in South Africa in middle of this year". The Africa Report.com. 2020-02-07. Retrieved 2021-06-18.
  9. ↑ Staff Writer. "Bank Zero launch plans ongoing amid Covid-19 disruption" . Retrieved 2021-06-18.
  10. 1 2 Malinga, Sibahle (2021-08-10). "Bank Zero finally launches after numerous hiccups". ITWeb. Retrieved 2025-04-24.
  11. ↑ Muller, Rudolph. "The FNB dream team who built Bank Zero" . Retrieved 2021-06-03.
  12. ↑ "Michael Jordaan's Bank Zero prepares to shake up the banking system". BusinessLIVE. Retrieved 2021-06-03.
  13. 1 2 Staff Writer. "The story behind Michael Jordaan's decision to start Bank Zero" . Retrieved 2021-06-03.
  14. ↑ Muller, Rudolph. "The FNB dream team who built Bank Zero" . Retrieved 2021-06-18.
  15. 1 2 3 4 "Here's how Bank Zero's patented debit cards work – and why your card number will never have to change". BusinessInsider. Retrieved 2021-06-18.
  16. ↑ "Bank Zero will now – maybe – launch by mid 2021, after yet another missed date". BusinessInsider. Retrieved 2021-06-18.
  17. ↑ Gavaza, Mudiwa. "Lesaka's shares jump on deal to acquire Bank Zero for R1.1bn".
  18. ↑ Shapshak, Toby. "Bank Zero Aims To Shakeup South African Banking With Tech-Savvy Offering". Forbes. Retrieved 2021-06-03.
  19. ↑ StevenDickens3 (2018-10-31). "Bank Zero disrupting Banking on LinuxONE". Mainframe Debate. Retrieved 2021-06-03.{{cite web}}: CS1 maint: numeric names: authors list (link)
  20. ↑ Staff Writer. "Bank Zero's IT infrastructure – Photos" . Retrieved 2021-06-03.
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