Bank Zero: a digital mutual bank in South Africa

The account is held by Bank Zero Mutual Bank, which shows in its legal notices the identifier MB0001 and its status as an authorised financial services provider. The bank describes itself as "fully registered" in South Africa and regulated by the South African Reserve Bank under the Mutual Banks Act. It appears among the mutual banks that are members of the Corporation for Deposit Insurance in the list published by the Reserve Bank.

A mutual bank is registered under its own law, separate from the one governing commercial banks; it takes deposits and falls under the Prudential Authority. We classify it among licensed banks (licensed-bank).

The institution's entry in the Prudential Authority register was not consulted directly; its status rests on the bank's legal notices and on the list of CoDI members published by the Reserve Bank. The shareholding was not verified.

Registration is done through the app and begins with a South African mobile number. Bank Zero then asks for a South African identity document: a smart identity card or identity book, a "South African only" passport, or a South African driving licence. The bank points out that the Financial Intelligence Centre Act (FICA) requires it to verify the identity of its customers.

Bank Zero states that accounts can be opened for people of any age; younger customers are invited by a parent or legal guardian, while older ones register themselves.

For an expatriate, the consequence is clear: all the accepted documents are South African. A foreigner holding a South African identity document (in principle, the case of a permanent resident) can enter the process; a foreigner with only a foreign passport and a temporary residence permit is not covered, and a non-resident even less so.

The pages reviewed do not say whether a foreign permanent resident is accepted with their identity book or card, nor what happens to the account after leaving South Africa.

Bank Zero presents itself as a branchless bank. According to its account-opening guide, the basic banking is free for payments, transfers, direct debits and card purchases, with no monthly fees or transaction fees for everyday digital use. ATM withdrawals and cash deposits are charged according to the bank's fee schedule.

The fee schedule (withdrawals, cash deposits) was not read: no amount is given. The account is not presented as multi-currency.

Eligible depositors of a CoDI member bank are covered up to up to ZAR 100,000¹ per depositor per bank. The CoDI list includes Bank Zero among its mutual bank members.

The CoDI FAQ specifies that foreign-currency deposits recorded on the balance sheet of a South African bank, in an eligible product, are covered; compensation is paid in rand, at the exchange rate on the day the bank closes. The limit applies per depositor and per bank.

• The required South African identity document, which excludes foreigners holding a foreign passport.
• The South African mobile number needed from the first step.
• The fees for cash withdrawals and deposits, in the fee schedule.
• What happens to the account if you leave South Africa.
• The reporting obligations linked to your tax residence: a French tax resident must declare each year the accounts opened, held, used or closed outside France, including those with online banks and payment wallets; other countries impose comparable obligations.
• The tax residence self-certification requested at opening: depending on the automatic exchange of information commitments of the bank's country, the account's balances and income may be reported to the tax authority of your country of residence.
• The role of the account in your overall arrangements: a local digital account mainly serves day-to-day life on site; it does not replace an account in your home country for direct debits, a pension or a mortgage, nor a multi-currency account for receiving euros.