This step, which came into effect from 22 January this year, marks the final step in the official registration process for the bank.
Having received its mutual banking license at the start of the year, the bank could potentially launch in 2025.
This will be the fruition of a dream for its founder and managing director, Nthabeleng Likotsi, who has been championing for the formation of South Africa's first majority Black women-owned mutual bank for many years.
Likotsi founded the Young Women in Business Network (YWBN) in 2009 to facilitate the empowerment of women by bringing together a network of Black professionals and business women to share experiences in investing and business.
She then conceptualised the YWBN Cooperative Financial Institution (CFI) in 2015.
Initially announced in 2018, YWBN - then functioning as a cooperative financial institution (CFI) - declared its intent to transition into South Africa's pioneering women-owned bank.
On 1 June, 2021, YWBN made history by launching the Own-the-Bank share scheme, opening its doors to the public and inviting individuals to become shareholders in the initiative. It hit regulatory hurdles, failed to comply with regulations, and it was forced to pay back the money it had raised.
Likotsi went back to the drawing board. Now YWBN mutual bank has a number of firsts to its name: the first women-owned bank, the first black women-owned bank, and the first Cooperative Financial Institution (CFI) to successfully apply for and receive a mutual banking license.
Likotsi indicated that the bank's attention will now turn towards its development phase, encompassing activities such as capital acquisition, network establishment, and groundwork establishment to enhance its outreach to marginalised communities it aims to serve.
Subsequently, the commercial launch of the bank will ensue; however, she emphasised that no official date has been determined yet.
Once launched, Likotsi stated that the mutual banking license will propel the group to provide savings- and loan products tailored for small businesses, including cash-loan services. The group is especially dedicated to catering to the needs of the unbanked and underserved demographic.
YWBN represents just one of the four newcomers making their mark in the South African banking landscape:
The South African Reserve Bank (Sarb) reports that there are only a few mutual banks operating in the country. These include Bank Zero Mutual Bank, Finbond Mutual Bank, and GBS Mutual Bank.
