Is our banking revolution truly inclusive or merely a digital illusion?

SOUTH Africa is in the midst of a banking gold rush, with new players like TymeBank, Bank Zero, OM Bank, and the Pepkor-Investec partnership all claiming to democratise finance.

But before we celebrate, we should ask: Are these banks truly addressing the real financial needs of ordinary South Africans, or are they just offering a digital face to fuel shareholder growth?

To be fair, the initial shifts have been positive. TymeBank’s low-fee model and instant, in-store onboarding genuinely lowered the barrier to entry. Bank Zero introduced a welcome focus on transparent pricing and a mutual ownership ethos. These innovations have injected much-needed competition into a sector that has long been criticised for its slow pace and predictable offerings.

Yet, beneath the promise of fintech disruption, millions remain excluded. Informal traders, domestic workers, and rural communities still lack access due to cash-based lives, documentation barriers, and costly, inconsistent data. To them, calls for digitisation ring hollow.

This digital-first obsession risks creating a banking sector that is incredibly innovative for the already included but virtually invisible to the excluded. It is a fundamental misreading of the South African financial landscape, which is layered and complex.

I recall the simplicity of my own childhood Post Office savings account. Banking was a physical, intimate ritual. You carried a savings book, and transactions were stamped in ink, right in front of you. There were no apps, no data costs, and no passwords to forget. It was a model built on simplicity, trust, and universal accessibility.

No one was excluded because they lacked a device or a data bundle.

Today, the long queues at ATMs and inside shopping centres on payday are a stark reminder that we are racing toward a digital future without acknowledging the diverse realities of our citizens. Some are ready for app-based convenience; others are simply trying to access their hard-earned money safely and affordably.

This brings us to the Pepkor-Investec venture. On paper, the synergy is powerful. Pepkor commands one of the deepest retail footprints in the country, a lifeline for millions of low-income households. Investec brings the financial credibility and technical muscle. But the real test will not be the technology; it will be the design philosophy.

Will this new bank truly build around the realities of a Pep shopper cash-dominated spending, irregular income cycles, and a desperate need for simple, trustworthy savings products? Or will it default to another digital-first offering that assumes stable connectivity and daily data access?

If the goal is genuine inclusion, the bank must prioritise:

• Cash-in/Cash-out: Real-world cash points at every till, turning Pep stores into true banking hubs.
• Micro-Credit: Lending models that respect seasonal or irregular income cycles, moving beyond rigid monthly repayments.
• Trust and Simplicity: Products that are easy to understand and use, built on a foundation of physical presence and community trust.

If the partnership leans too heavily into digital glamour, it will repeat the mistakes of its predecessors and miss the very people it claims to serve.

The current focus of most new entrants is on rapid customer acquisition, app downloads, account openings, and transaction volumes. These metrics look impressive on investor slides, but they are a poor proxy for financial inclusion. Real inclusion is not measured by sign-ups; it is measured by behaviour. It is measured by savings habits developed, credit accessed safely, and financial confidence improved.

Some promising models exist. TymeBank’s retail partnership offers a blueprint for real-world cash access. The revival of Postbank, if executed correctly, could leverage its unmatched physical reach to become the most inclusive bank in the country. The Young Women in Business Network mutual bank is a vital example of targeting historically excluded segments with tailored solutions.

Ultimately, South Africa does not lack banks; it lacks banking solutions that understand the realities of poverty, informality, and rural living. Designing products for the informal economy is not an optional add-on; it is the essential foundation. Banks must build for the rhythms of irregular income, adopt proportionate identity rules for low-value accounts, and invest in community-based banking agents and financial education.

Our new banking entrants have the technology, the capital, and the ambition to transform lives. But they must treat inclusion as a mission, not merely a marketing slogan. They must move beyond the comfort zone of the digitally ready and create real-world pathways for those who have been left behind. Trust must be built at the till, not only on a touchscreen.

South Africa deserves more than a new banking story. It deserves a banking system that truly understands its people. The question for this new generation of banks is simple: Will you use your tools to transform lives, or merely to satisfy shareholders? The answer will define the future of finance in our nation.

* Nyaniso Qwesha is a writer with a background in risk management, governance, and sustainability. He explores how power, accountability, and innovation intersect in South Africa’s landscape.

** The views expressed here do not reflect those of the Sunday Independent, IOL, or Independent Media.

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