Michael Jordaan Mulls Partnerships To Grow Bank Zero

Launched in 2021, the digital bank is set to break even within two years and has received interest in forming strategic linkups from a large insurer, a telecommunications company and a payments firm.

"The next step is to scale up and it could just be that we do it in partnership," Jordaan, Bank Zero's co-founder and chairman, said in an interview in Stellenbosch, the location of his family's wine estate, Bartinney.

His new venture is among a handful of lenders encroaching on a space dominated by South Africa's big five financial institutions. Unlike unicorn Tyme, which billionaire Patrice Motsepe backs, or the bank set up by top health insurance administrator Discovery, it's fully funded by its six founders who have yet to pay themselves.

While Bank Zero's bigger rivals have invested billions of rand in their offerings, the new lender has a fraction of that, meaning it will reach profitability with "fewer customers and less risk", Jordaan said. Its small user base is growing by about 50 year on year and is set to reach 100 000 by 2027, he said.

Jordaan's second act in banking wasn't deliberate or intended.