Despite the country having 41 banks at the time of writing - Absa, FNB, Nedbank, and Standard Bank (known as ‘The Big Four’) dominate the local banking sector.
Together they provide over 90% of South African mortgages and more than 80% of banking services.
This makes it hard for new banks to disrupt the market, even though we have a massively underserved populace of lower-income households.
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People who don’t have access to or don’t use traditional banking services, such as a savings or current account, are referred to as the ‘unbanked’ market.
This market often relies on alternative financial services like cash transactions, payday loans, or mobile money instead of formal banking systems.
In South Africa, there are estimated to be about 6.5 million unbanked and 15 million underbanked individuals. Underbanked clients may have a bank account but lack access to credit, loans and savings groups.
According to Daily Investor , four new banks have registered this year and are set to enter the market – many of them aimed at the underserved/unbanked. Here’s a quick overview:
| Bank | Expected Launch Date | Target Market |
|---|---|---|
| Postbank | Has existed for several years as a savings subsidiary, launched in 2024 as a fully-fledged bank | SMMEs*, the public sector, communities not catered to by traditional retail banking. |
| YWBN Mutual Bank | YWBN is open and raising funds to operate as a mutual bank | SMMEs, unbanked, underserved and previously disadvantaged consumers. |
| SAIFSC Bank | Did not launch at its stipulated date of July 2024 | Women, youth, and persons with disabilities, particularly in rural areas. |
| OM Bank | First quarter of 2025 | Existing Old Mutual clients, new retail banking clients in the lower-income and upper-mass-market segments. |
* Small, Medium, and Micro Enterprises, often in the informal sector.
Let’s take a closer look at the new kids on the block …
The South African Post Office’s bank, Postbank, has been operating in South Africa for several years – providing minor banking services as a savings subsidiary.
This year, it launched as a fully-fledged bank that offers transactional accounts and other services.
As South Africa’s only state-owned bank, Postbank is focused on low-cost banking services for unbanked and underserved clients.
Their Sassa Account, for instance, is designed specifically for people receiving social grants. It’s linked to a debit card and allows them to not only receive their grant payment but transact electronically anywhere where there’s a Visa or MasterCard logo.
If you need to make additional transactions, these are the costs:
| Monthly service/ledger fee | Free |
| Minimum account balance | R0 |
| Deposits (cash) | Free - Only Sassa EFT credits allowed |
| Retail merchant purchases | Free |
| Purchases and cashback at merchants | 3 Free per month, thereafter R3.50 per transaction |
| Replacement card | 1st replacement per annum free, thereafter R26.00 |
| Full statement at Post Office branches | 1st statement per month free, thereafter R20.00 |
| Mini statement at Post Office branches | Free |
| Balance enquiry at branches or retail merchants | 1st enquiry per month free, thereafter R2.60 |
| Unsuccessful/rejected transactions | R4.50 |
| PIN reset at Post Office branches | 1st PIN reset per annum free, thereafter R8.00 |
| ATM withdrawal | R5.31 + (amount * 0.83%) + R0.20 (switch fee) |
| ATM balance enquiry | 1st enquiry per month free, thereafter R1.60 |
| Rejected transactions at ATM | R4.50 |
If you don’t receive a Sassa grant, you can get Postbank’s Mzansi Account. It’s linked to a debit card that allows users to make payments, withdraw cash from ATMs, and perform transactions at any Post Office branch nationwide.
A key feature is the ability to manage monthly expenses through debit and credit orders, but there are some limitations. The account balance must not exceed R25,000, and daily withdrawals are capped at R5,000.
| Transaction Type | Fee |
|---|---|
| Monthly service/ledger fee | R3 |
| Minimum opening deposit | R40 |
| Minimum account balance | R40 |
| Deposits (cash) | R3.00 up to R100.00, thereafter R3.00 per R100.00 above R100.01 |
| Withdrawal (cash) branch | R10.00 up to R100.00, thereafter R2.10 per R100.00 above R100.01 |
| Close-out Withdrawal | R19 |
| Repayment of Unclaimed funds | R76 |
| Replacement: Debit card | R77 |
| Full statement up to 3 months (branch or mailed on request) | R21 |
| Full statement 4 months and older (mailed on request) | R42 |
| Mini statement and balance enquiries (Branch) | Free |
| Account dormancy fee | R30 |
| Point of sale purchase | Free |
| Cash back only | R3.50 |
| Purchase and cashback | R2.45 |
| Declined purchase - Any customer related reason | R4.50 |
| Saswitch fees* | |
| Cash withdrawal: ATM | R8.70 up to R100.00, thereafter R2.00 per R100.00 |
| Balance enquiry: ATM | R4.30 |
| Rejected transactions: ATM | R4.50 |
| Rejected transactions card swallowed ATM | R2 |
| Cell phone balance enquiry | No banking fee. R1.00 charged by mobile service provider for SMS |
| Interest with effect from 20 Sep 2024 | 0% on R0 - R50,000+ |
* Mzansi Saswitch fees are only applicable if the ATMs of major banks are used: ABSA, FNB, Nedbank, Standard Bank, and Capitec. Fees will apply if any other bank ATM is used.
So how does Postbank’s Sassa and Mzansi Card stack up against other players? Let’s take a look …
| Bank | Monthly Admin Fee | Digital funds transfers (via app or online) | Cash withdraw (local) at bank’s ATM | Cash withdraw (local) at another bank’s ATM | Point of sale cash withdrawal |
|---|---|---|---|---|---|
| Postbank Sassa | Free | Free | Postbank doesn’t have its own ATMs | R5.31 + (amount withdrawn *0.83%) + R0.20 (switch fee) | 3 free purchases and cashback or cash back per month, thereafter R3.50 per transaction |
| Postbank Mzansi | R3 | Free | Postbank doesn’t have its own ATMs | R8.70 up to R100, thereafter an additional R2 per R100 and above | R3.50 for cash back only, R2.45 for purchase and cash back |
| Absa Transact | R5.50 | Free | R10 per R1,000 | R10 per R1,000 | Free |
| Bank Zero Zero Account | Free | Free | Bank Zero does not have its own ATMs | R9 per R1,000 | R2 |
| Capitec Global One | R7.50 | R1 to Capitec account and R2 to other SA bank | R10 per R1,000 | R10 per R1,000 | R2 |
| Discovery Bank Gold PAYT* | R25** | R2.75 | 4 free, R5 + 2.50% of the withdrawal amount thereafter | 4 free, R5 + 2.50% of the withdrawal amount thereafter | R2 |
| FNB Easy PayU | R6.50 | Free | R10 per R1,000 up to R2,000, then R14 per R1,000 | R12 plus R2.30 per R100 | R1.50 |
| Nedbank Pay-As-You-Use | R5 | Free | R11 per R1,000 or part thereof | R12 + R2 per R100 | R2 |
| Standard Bank MyMo PAYT | R6.95 | R1.25 | R9 per R1,000 or part thereof | R10.50 per R1,000 or part thereof | R1.40 |
| TymeBank EveryDay | Free | Free | TymeBank doesn’t have its own ATMs | R10 per R1,000 or part thereof | Free at PicknPay and Boxer, R3 at other till points |
*PAYT = Pay as you transact
**Includes Vitality Savings and Money Account
Win! Like TymeBank and Bank Zero, Postbank’s Sassa account has no monthly admin fees. Their Mzansi account is also low-cost at R3 a month.
Win! Digital funds transfers are free and withdrawing cash at an ATM using Saswitch (Postbank doesn’t have its own ATMs) is reasonable at R5.31 + (amount withdrawn *0.83%) + R0.20 (switch fee) for the Sassa Card and R8.70 up to R100, thereafter an additional R2 per R100 and above on their Mzansi Card. This is cheaper than all the other accounts besides Discovery, which has a R25 a month admin fee.
Lose! When it comes to getting money from a point of sale (like a Checkers or PnP), Postbank is the most expensive of the banks at R3.50 for a cash back only and R2.45 for a purchase and cash on their Mzansi card.
| Category | Winner(s) | Most Expensive |
|---|---|---|
| Admin fees | Postbank Sassa, Bank Zero and TymeBank are free | Discovery (R25) |
| Digital funds transfers | Postbank, Absa, Bank Zero, FNB, Nedbank and TymeBank are free or the fee is included in their monthly admin fee | Discovery (R2.75) |
| Cash withdrawal (local) at bank’s ATM | Discovery (4 free, R5 + 2.50% of the withdrawal amount thereafter) | Nedbank (R11 per R1,000 or part thereof) |
| Cash withdrawal (local) at another bank’s ATM | Discovery (4 free, R5 + 2.50% of the withdrawal amount thereafter) | FNB (R12 plus R2.30 per R100) |
| Point of sale cash withdrawal | Absa is free at all till points | Postbank Mzansi (R3.50 for cash back only, R2.45 for purchase and cash back) |
South Africa has several types of banks, each serving different purposes. Here’s a quick look:
| Bank Type | What it is | Examples |
|---|---|---|
| Commercial banks | The largest and most common banks offering a wide range of services, including savings, loans, and investments. | Standard Bank, FNB, Absa, Nedbank |
| Mutual banks | These banks are owned by their members (depositors) and focus on community banking. | Bank Zero, YWBN Mutual Bank |
| Cooperative banks | Smaller, member-owned institutions that cater to specific communities or groups, providing savings and credit services. They operate on cooperative principles. | SA Innovative Financial Services Cooperative |
| Developmental banks | These banks focus on providing financial support for projects that promote economic development, such as infrastructure or social projects. | Development Bank of Southern Africa (DBSA), Land Bank (focused on agricultural development) |
| Foreign and foreign-controlled banks | Some foreign banks operate in South Africa, either as branches or subsidiaries. | CitiBank, HSBC |
| Investment banks | These banks focus on services related to financial markets, such as underwriting, securities trading, and mergers. | Rand Merchant Bank (RMB), Investec |
| Central bank | The South African Reserve Bank (SARB) regulates the banking sector, manages inflation, and controls monetary policy in the country. | The South African Reserve Bank (SARB) |
