Young Women's Bank Receives License in South Africa

The Young Women in Business Network (YWBN) has received a mutual banking license from the South African Reserve Bank's Prudential Authority, marking a significant step toward gender equality in the financial industry. YWBN, which was initially announced in 2018, aims to change from a cooperative financial institution (CFI) into South Africa's first women-owned mutual bank.

Despite confronting regulatory complications in 2021, including issues with its 'Own the Bank' share structure, YWBN overcame obstacles and now holds the required license.

The managing director, Nthabeleng Likotsi, stressed the historical significance of this accomplishment, noting, "This is officially, in the history of South Africa, the first majority women-owned bank."

The mutual banking license enables YWBN to engage "fully and equally" in the financial services industry. As a mutual bank, depositors will be the ultimate owners and shareholders, with the ability to vote on operational concerns at general meetings. Mutual banks are noted for their conservative approach to investment and lending, which frequently prioritizes savings.

YWBN focuses on helping the unbanked and underserved communities, notably entrepreneurs and SMEs in townships. The bank intends to offer small company savings and lending products, with a focus on fostering financial inclusion. While there is no formal launch date, Likotsi stated that the following stages would include gathering cash, developing a network, and setting the groundwork for servicing underprivileged populations. The expected formal launch window for YWBN Mutual Bank is 2025 or later.