New entrants banking on an upset
When Capitec launched, many believed it didn’t stand a chance of breaking the stranglehold of the ‘big four’ banks. What are the odds that new banks set to be launched in 2019 can also succeed?
The economy might be in flux, but that’s not stopping two of the country’s most creative business minds — former FNB CEO Michael Jordaan and Discovery Health founder and CEO Adrian Gore — from launching their own banks in 2019. It will not be plain sailing; they are going up against an established banking sector that is well-resourced in capital and skills and has a record of trumping banking upstarts. Gore has no banking experience, but he has reshaped the medical aid market with Discovery Health and is keen to have a similar impact on the banking sector. In Jordaan, the "big four" incumbents have a different opponent. As an insider, he knows the ins and outs of the sector, as well as its strengths and weaknesses. Jordaan tells us how his Bank Zero plans to find its space in what’s becoming a crowded sector. FM: What has changed in SA to make it easier for you to launch a new bank? Launching a bank has been anything but easy. The first challenge has been assembling a small team of ...
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