Bank Zero begins final count down with debit card beta
Digital- only Bank Zero says it's on track for its launch in the first half of next year after going live with its debit cards.
To counter widespread card fraud the new hotly anticipated banking entrant says it has run "rigorous health-checks such as simulated card attacks, card fraud detection and retailer readiness" on its new debit cards.
As its name implies, the mutual banks won't charge fees and still plans to launch public operations in the first half of 2020.
South African cardholders lost a "whopping R873 million ($12 million)" to card-related theft in 2018, according to banking organisation SABRIC. To protect against this, the bank says it developed "a new patented card which offers vital security and convenience" that will minimise card data theft and skimming.
The new bank's chair Michael Jordaan, who is something of a celebrity banker in South Africa, says: "Globally, banks are big spenders on such projects, often spanning multiple years, but sweat capital along with an integrated business-and-tech design approach is our strategic advantage".
Open source technology, combined with a scientific design approach, delivered this card in record time, he adds, with Mastercard teams from South Africa, India and the USA closely involved, while they also tapped IBM's global expertise in encrypted card security.
"During the development of Bank Zero, no traditional banking systems were bought nor was any outsourcing done - these are expensive yet conventional solutions," says Bank Zero CEO Yatin Narsai. "We wanted to create an exciting customer offering which required building our own systems."
In the past year, three large payment rails were created from scratch, including Direct integration into the South African Reserve Bank's system, in order to become a settlement bank; electronic payments (EFTs) and debit orders, establishing it as a clearing bank; as well as issuing and processing of debit cards.
"Zero pricing, along with our advanced card security, are just some of the ways in which we make our customers' lives easier. We also bring special functionality around social connectedness, transparency, control, advanced payments and a focus on savings," says Yatin.