Quick Facts

• 6 major new banks launched or launching in 2025
• OM Bank already serving 140,000+ customers
• Pep Bank aims to offer zero-fee banking at 6,000 stores
• Digital banking fraud increased 86% in 2024
• TymeBank has over 10 million customers

Why Are So Many New Banks Opening in South Africa?

South Africa’s banking sector is experiencing major changes in 2025. New banks are launching to challenge the Big Four banks. These new banks target South Africans who pay high fees. Many focus on people who don’t have bank accounts.

About 6.5 million South Africans still have no bank account. Another 15 million people are underbanked. This means they have accounts but cannot access credit or savings products. New banks see this as an opportunity.

The banking landscape now has 29 existing banks. At least 6 more banks are launching or applying for licences in 2025. This creates more competition. More competition usually means lower fees and better services for customers.

✅ OM Bank: Already Operating Since August 2025

What Is OM Bank?

OM Bank is owned by Old Mutual. It officially launched to the public in August 2025. The bank targets the mass market. This means people earning between R8,000 and R80,000 per month.

The bank already has 140,000 customers as of November 2025. It adds about 5,000 new customers every day. Old Mutual spent nearly R3 billion building this bank.

Key Features

• Digital-first banking through mobile app
• Access to Old Mutual’s 346 physical branches for support
• Transactional accounts and credit products
• Integration with Old Mutual’s investment and insurance products
• Competing directly with Capitec in the mass market

Who Should Consider OM Bank?

OM Bank suits people who want digital banking with branch support. If you already have Old Mutual products, integration makes it convenient. The bank needs 2.8 million clients to break even. It expects to be profitable by 2028.

How to Open an Account

Download the OM Bank app from Google Play or Apple App Store. You need your ID document and proof of address. The app uses biometric verification. Account opening takes about 10 minutes.

⚠️ Pep Bank: Zero-Fee Banking Coming to 6,000 Stores

What Is Pep Bank?

Pep Bank is being launched by Pepkor Holdings. Pepkor owns Pep, Ackermans, Dunns, Shoe City, and Tekkie Town. The company received banking approval from the Prudential Authority in November 2025.

Pepkor is partnering with Investec to run the banking operations. The profits will be shared between both companies. This partnership has not been finalised yet. Both companies are still in discussions.

Key Features

• Zero-fee banking services
• Banking available at over 6,000 Pepkor stores nationwide
• Targets lower-income South Africans and informal traders
• Uses existing customer data to tailor financial products
• Plans to compete directly with Capitec and TymeBank

Why This Could Change Banking

Pep stores are in townships and rural areas across South Africa. Many people already shop at Pep regularly. They can now deposit wages, do shopping, and bank in one visit. This convenience could attract millions of customers.

Pepkor’s Fintech division already earned R7.9 billion in six months. This shows people trust Pepkor with financial services. The company acquired CloudBadger fintech software in October 2025. This will power the bank’s digital systems.

When Will It Launch?

Pepkor received regulatory approval in November 2025. The bank is expected to launch in 2026. No specific date has been announced yet. The company is still building the banking infrastructure.

Revolut: International Bank Enters South Africa

What Is Revolut?

Revolut is a major international digital bank. It has millions of customers across Europe and other countries. The company formally applied for a South African banking licence in November 2025.

This is Revolut’s first expansion into Africa. The company submitted its Section 12 application to the Prudential Authority in mid-November 2025. This application is still under review.

What Services Will They Offer?

If approved, Revolut plans to offer:

• Bank accounts with competitive rates
• Personal and business loans
• Investment products
• International money transfers
• Multi-currency accounts

Leadership in South Africa

Revolut appointed Dr Gaby Magomola as chairman of its South African business. He previously served as CEO of African Bank. Jacques Meyer is the CEO of Revolut South Africa.

The company expects to create 10,000 jobs worldwide over five years. Some of these jobs will be in South Africa if the bank launches successfully.

When Will It Launch?

Banking licence applications typically take 12 to 18 months to process. Revolut applied in November 2025. If approved, the bank could launch in late 2026 or early 2027.

✅ Postbank: South Africa’s State-Owned Bank

What Is Postbank?

Postbank was previously a savings subsidiary of the Post Office. It became a fully-fledged state-owned bank in 2025. President Cyril Ramaphosa signed the Postbank Amendment Bill in September 2023. This allowed Postbank to offer complete banking services.

Postbank is now independent from the struggling Post Office. The government owns it directly. This makes Postbank South Africa’s only state-owned retail bank.

Who Does Postbank Serve?

Postbank focuses on:

• Rural communities with limited access to banks
• Lower-income households
• SASSA grant recipients
• Unbanked and underbanked South Africans
• Small businesses in underserved areas

Special Account for SASSA Recipients

Postbank offers a SASSA Account specifically for grant recipients. Key features include:

• No monthly fees
• Free deposits for SASSA-related EFT credits
• Linked to a Visa or MasterCard debit card
• Three free purchases or cashback transactions per month
• R3.50 fee for additional transactions

Current Services

Postbank now offers transactional accounts and savings products. The bank uses other banks’ ATMs through the Saswitch network. ATM fees are R5.31 plus 0.83% of the withdrawal amount plus R0.20 switch fee.

YWBN Mutual Bank: South Africa’s First Women-Owned Bank

What Is YWBN Mutual Bank?

The Young Women in Business Network (YWBN) received its mutual banking licence in January 2024. This makes it South Africa’s first women-owned bank. The bank is still building its infrastructure.

YWBN started as a Cooperative Financial Institution in 2018. It only served its members. Now with a full banking licence, it can serve all South Africans. The bank may be renamed Nthabeleng Likotsi Mutual Bank. This awaits regulatory approval.

What Is a Mutual Bank?

Mutual banks are different from regular banks. Depositors become shareholders. They have voting rights in general meetings. Mutual banks tend to be more conservative. They focus on savings rather than risky investments.

Other mutual banks in South Africa include Bank Zero, Finbond Mutual Bank, and GBS Mutual Bank. These banks are owned by their customers, not outside shareholders.

When Will It Launch?

YWBN Mutual Bank spent 2024 building its banking systems. The launch is scheduled for 2025 or later. No specific launch date has been announced yet. The bank is focusing on getting everything right before opening.

📱 Existing Digital Banks You Should Know About

TymeBank (10+ Million Customers)

TymeBank launched in 2019. It is backed by billionaire Patrice Motsepe. The bank has over 10 million customers as of 2025. It was valued at R26 billion in late 2024.

Key features:

• No monthly banking fees
• Account opening at Pick n Pay, Boxer, and TFG stores
• Over 1,000 kiosks across South Africa
• GoalSave savings account with competitive interest
• Transaction costs 30-50% lower than traditional banks

TymeBank will rebrand as GoTyme in the first half of 2026. This reflects the bank’s international expansion. It operates in the Philippines and other Asian markets.

Discovery Bank (1+ Million Customers)

Discovery Bank launched in 2019. It reached one million customers in September 2024. The bank integrates with Discovery’s Vitality rewards programme. This attracts higher-income customers.

The bank aims to double its customer base by 2029. It expects to generate R3 billion in profits by that time. Discovery Bank is not yet profitable but growing steadily.

Bank Zero

Bank Zero launched in 2021. It was founded by former FNB CEO Michael Jordaan. The bank operates as a mutual bank. It focuses on transparent, low-cost banking.

In June 2025, Lesaka Technologies acquired Bank Zero. This provides capital for growth. Bank Zero does not offer credit products. It focuses purely on transactional banking and savings.

Capitec (25 Million Customers)

While not new, Capitec deserves mention. It disrupted South African banking in the early 2000s. Capitec is now the largest bank by customer numbers. It has nearly 25 million customers.

Capitec’s success shows how new banks can challenge traditional players. The bank focuses on simplicity and affordability. Many new banks are trying to copy Capitec’s approach.

Bank Comparison Table

Bank Name	Status	Key Feature
OM Bank	✅ Operating	Old Mutual integration, 346 branches
Pep Bank	⏳ Approved, launching 2026	Zero-fee banking at 6,000 stores
Revolut	⏳ Applied Nov 2025	International digital bank, multi-currency
Postbank	✅ Operating	State-owned, SASSA account, rural focus
YWBN Mutual Bank	⏳ Licensed, building systems	First women-owned bank, mutual model
TymeBank	✅ Operating (since 2019)	10+ million customers, retail kiosks
Discovery Bank	✅ Operating (since 2019)	Vitality rewards integration
Bank Zero	✅ Operating (since 2021)	Mutual bank, transparent pricing

🚨 CRITICAL: Banking Scams Are Increasing Dramatically

The Current Threat Level

Digital banking fraud increased 86% in 2024. South Africans lost R1.888 billion to online scams. The South African Banking Risk Information Centre warns this could get worse in 2025.

Criminals now use artificial intelligence to create scams. These scams are harder to detect than before. Even financially educated people are falling victim.

AI-Powered Scams to Watch For

Deepfake Voice Calls:

Scammers use AI to clone bank officials’ voices. They call you pretending to be from your bank. The voice sounds exactly like a real bank employee. They try to get your PIN, OTP, or banking passwords.

Fake Banking Apps:

Criminals create apps that look exactly like real banking apps. They send links via WhatsApp or SMS. When you download these apps, they steal your login details.

Investment Scams:

Scammers promise high returns on investments. One victim lost R6 million to fake JSE traders. Another lost over R100,000 to a fraudulent broker. These scams often use fake social media accounts.

Red Flags: Signs of a Banking Scam

• Anyone asking for your PIN, OTP, or banking password
• Calls claiming there’s urgent fraud on your account
• Messages with links asking you to log into your banking app
• Investment opportunities promising guaranteed high returns
• Banking apps sent via WhatsApp, SMS, or email links
• Requests to move money “to secure it” from fraud
• Pressure to act immediately without time to verify

How to Protect Yourself

• Never share your PIN, OTP, or passwords with anyone
• Download banking apps only from official app stores
• If someone claims to be from your bank, hang up and call the official number
• Use biometric authentication (fingerprint or face recognition)
• Enable multi-factor authentication on all accounts
• Don’t click on banking links in messages or emails
• Verify investment opportunities through FSCA website (www.fsca.co.za)
• Report suspicious activity immediately to your bank

What Banks Will NEVER Do

Legitimate banks will never:

• Ask for your PIN or full banking password
• Request OTPs over the phone
• Send you links to download their banking app
• Ask you to move money to “secure” it
• Pressure you to act immediately on the phone
• Use WhatsApp or Telegram for official banking

How to Choose the Right Bank for You

Consider Your Banking Needs

Different banks suit different people. Think about what matters most to you:

If you want the lowest fees:

Consider TymeBank, Bank Zero, or wait for Pep Bank. These offer no or low monthly fees. Digital-first banks usually have lower costs than traditional banks.

If you need physical branch access:

OM Bank gives you access to Old Mutual’s 346 branches. Postbank operates through Post Office branches nationwide. Pep Bank (when launched) will have banking at 6,000 stores.

If you receive SASSA grants:

Postbank’s SASSA Account has no monthly fees. It’s designed specifically for grant recipients. You get three free purchases per month at retailers.

If you want rewards and benefits:

Discovery Bank integrates with Vitality rewards. You earn points for healthy behaviours. These points reduce banking fees and provide other benefits.

If you want international banking:

Wait for Revolut if approved. Revolut offers multi-currency accounts. This helps if you travel or work with international clients.

Questions to Ask Before Opening an Account

• What is the monthly account fee?
• How much do transactions cost (withdrawals, transfers, payments)?
• Is the bank registered with the South African Reserve Bank?
• How do I access customer support?
• Where can I withdraw cash without fees?
• Does the app have good reviews and security features?
• What documents do I need to open an account?
• How long does account opening take?

Check if a Bank is Legitimate

Before opening an account with any new bank:

• Verify the bank is registered with SARB (South African Reserve Bank)
• Check FSCA website (www.fsca.co.za) for warnings about fake banks
• Look for banking licence number in official communications
• Read reviews from multiple sources, not just social media
• Confirm physical addresses and official contact numbers

📞 Important Banking Contacts for 2025

Regulatory Bodies

• Prudential Authority (SARB): 0800 202 087 – Banking licence and safety issues
• Financial Sector Conduct Authority (FSCA): 0800 110 443 – Market conduct and scams
• National Credit Regulator: 0860 627 627 – Credit and lending issues
• Banking Ombudsman: 0860 800 900 – Banking complaints and disputes

Fraud Reporting

• SABRIC (Banking Risk Centre): Report at www.sabric.co.za
• SAFPS Scam Hotline: 083 123 7226 – Report fraud incidents
• SAPS (Police): 10111 – Report financial crimes

Consumer Protection

• National Consumer Commission: 0860 003 600
• Information Regulator: 012 406 4818 – Data protection violations

South Africa’s banking sector is changing rapidly in 2025. More banks mean more choice and lower fees. However, more banks also mean more scams targeting confused consumers.

If you want to try a new bank now, OM Bank and Postbank are fully operational. TymeBank, Discovery Bank, and Bank Zero have proven track records. Wait for official launches before trying Pep Bank or other announced banks.

Stay extremely vigilant about banking scams. Digital fraud increased 86% in 2024. Never share your PIN, OTP, or passwords with anyone. Download apps only from official stores. Report suspicious activity immediately.

Compare fees before opening accounts. Consider your actual banking needs, not marketing promises. Read reviews from multiple sources. Verify banks are properly licensed through SARB.

The banking landscape will look very different by end of 2026. More competition should mean better services for all South Africans. Choose wisely and bank safely.