However, the road wasn’t without challenges, as regulatory issues in 2021 related to their ‘Own the bank’ share scheme required them to repay raised funds.
YWBN has now overcome these obstacles, securing its place as the first black women-owned bank and the first Cooperative Financial Institution (CFI) to receive a mutual banking license. Mutual banks, where depositors become shareholders, are known for their conservative approach to investments and lending, focusing on savings.
The mutual banking license grants YWBN the ability to offer essential financial services to small businesses, with a particular emphasis on savings and loan products for cash needs.
Targeting unbanked and underserved populations, especially in townships, the bank aims to serve entrepreneurs and SMEs. Managing director Nthabeleng Likotsi recently highlighted the importance of building capital, establishing networks, and laying foundations to better serve marginalized communities.
Although the official launch date is yet to be set, a launch window possibly in 2025 or later is likely. These things take time.
This development signifies a positive step towards financial inclusion and empowerment in South Africa.