Lesaka on Friday announced it had agreed to buy the digital bank chaired by former FNB CEO Michael Jordaan for R1.1-billion.
Responding to e-mailed questions from TechCentral, Jordaan said the bank is growing strongly on its own - by between 40 and 60 a year in customers, deposits and transaction volumes - but there are administrative hurdles to overcome before the merged entity can begin delivering new products and services.
"Right now, we are focused on the various regulatory approvals: Prudential Authority, Competition Commission and exchange control. The merger projects can only start once the transaction becomes unconditional," said Jordaan. "We are happy to have created a South African unicorn and to be listed on the JSE and Nasdaq."
Bank Zero is, however, keen to partner with fintechs, like those in Lesaka's stable, allowing them to offer banking services to their customers. Global payments would allow for cross-border payment facilities, making it possible to take advantage of Lesaka's footprint of merchant clients across Southern Africa.
Jordaan said the combination of a modern, agile bank with a low-cost distribution network is a great business model. Already, neobanks like Bank Zero are less burdened than traditional banks by legacy systems, making it less costly for them to deliver banking services to customers.