End of an era for South Africa’s zero-fee bank coming

Bank Zero is forecast to achieve break-even status at the standalone level in December 2026, with its deposit base expected to reach R1 billion.

This milestone has been a long time coming for the zero-fee bank, which obtained a banking licence in 2018 and is in the process of being acquired by South African fintech company, Lesaka.

The acquisition is not yet complete, with some regulatory hurdles remaining, including approval from the Prudential Authority and exchange control approval from the Reserve Bank.

Lesaka announced in its fourth-quarter FY2026 results presentation that it expects the transaction to become unconditional in December 2026.

This is the same month Bank Zero is expected to achieve break-even status, a critical and long-awaited milestone for the bank.

The record time in which a bank has reached break-even status belongs to TymeBank, which achieved the milestone in four years and 10 months.

Discovery Bank took seven years from its initial setup in 2019 to reach full-year break-even status and reported its maiden operating profit in the financial year ended June 2026.

This means Bank Zero, which launched to the public in August 2021, would narrowly miss Tyme Bank’s record, but reach break-even faster than Discovery Bank did.

Bank Zero has a unique proposition: it offers a bank account with no monthly subscription fee and lower transaction costs than conventional accounts.

It also does not rely on the traditional banking structures of established banks, such as head offices, branches, and numerous employees.

The bank was founded by six investors, including former FNB CEO and venture capitalist Michael Jordaan.

It was initially projected that the bank would reach break-even status within two years after launch, as its founders expected the company to benefit from fewer customers and less risk.

The Lesaka acquisition was first announced in June 2025, when Bank Zero had a deposit base of R400 million.

The parties received unconditional approval from the Competition Tribunal in November 2025.

It began onboarding its first alliance banking partner, Paymentology, in April 2026. By that time, Bank Zero’s deposit base had grown to R700 million.

Now, Lesaka said break-even status is within sight, and it expects Bank Zero to reach the coveted milestone in December 2025.

That same month, Lesaka’s management expects Bank Zero’s deposits to reach R1 billion.

When the acquisition was first announced, Lesaka said it aligns with the company’s ambition to build a vertically integrated fintech platform.

The acquisition will give Lesaka access to Bank Zero’s digital banking infrastructure and its operational banking license. 

This, together with Lesaka’s fintech and distribution platform, is set to transform how it conducts business, offering key financial, strategic, and regulatory benefits.

Over the next two years, Lesaka expected Bank Zero’s deposits to reach R4 billion in the 2029 financial year, implying a compound annual growth rate of 60%.

Lesaka’s timeline for its Bank Zero acquisition is shown in the image below.