Start of a new era for South Africa’s zero-fee bank

The Competition Commission has cleared a deal in which the financial technology company Lesaka will acquire Bank Zero.

Bank Zero, founded in 2018, is a South African digital bank built on modern technology and a zero-fee banking model.

The new digital bank is the brainchild of former FNB Chief Executive Michael Jordaan and banking innovator Yatin Narsai.

From the outset, they aimed to provide a better banking experience with lower fees to retail and commercial customers in South Africa.

Bank Zero is built on a secure, app-driven platform that provides individuals and businesses with greater control, transparency, and cost efficiency.

As of the end of April 2025, Bank Zero had a deposit base exceeding R400 million and more than 40,000 funded accounts across South Africa.

In June 2025, Lesaka Technologies announced that it had entered into an agreement to acquire 100% of Bank Zero.

The Bank Zero shareholders will own approximately 12% of Lesaka’s shares and receive up to R91 million in cash upon completion of the transaction.

Following completion of the transaction, Michael Jordaan will join the Lesaka board, while Yatin Narsai will continue as Bank Zero CEO.

The broader Bank Zero leadership team will remain in their current roles, ensuring continuity and integration.

Lesaka highlighted that the transaction was subject to the satisfaction of customary closing conditions and regulatory approvals.

These approvals include the Prudential Authority, a division of the South African Reserve Bank, the Competition Commission, and Exchange Control.

The Competition Commission has recommended that the Tribunal approve the proposed transaction between Lesaka and Bank Zero Research.

It said the transaction is unlikely to lessen or prevent competition in any market and that it does not raise significant public interest concerns.

A new era for Lesaka and Bank Zero

Lesaka said the transaction marks a key milestone in its journey to build a vertically integrated fintech platform.

It will combine Bank Zero’s digital banking infrastructure and its operational banking license with Lesaka’s fintech and distribution platform.

“This will transform the way Lesaka can conduct business in the future, offering key financial, strategic and regulatory benefits,” it said.

 It includes servicing its customers better through a full suite of banking services and unlocking meaningful synergies and new opportunities.

It will also accelerate product innovation and streamline operations across Lesaka’s consumer, merchant and enterprise divisions.

Lesaka added that the transaction will improve its balance sheet and enable the group to finance both its existing and continued growth in lending books.

Jordaan said the transaction reflects a strategic partnership underpinned by long-term alignment and continued involvement of all Bank Zero founders.

“Our belief in the combined platform’s future is clear, and we see strong symmetry in our vision,” he said.

“We are confident that the synergies between our digital banking infrastructure and Lesaka’s fintech reach will create sustainable value for all stakeholders.”

Narsai said joining forces with Lesaka allows them to accelerate their mission to use technology to remove friction, lower costs, and challenge legacy banking norms.

“Our focus has always been on that mission at scale, reaching more customers, faster, while staying true to the principles that define who we are,” he said.

“It represents a critical step for Lesaka and Bank Zero in realising new revenue streams, improving capital efficiency and unlocking synergies across our ecosystem.”