South African digital bank Bank Zero covered its operating costs for the first time in August 2026, almost five years after opening to the public. In the same month, about 500,000 customers of remittance company Mukuru began moving onto its platform, IT News Africa reported, citing Bloomberg and TechCentral.
A first break-even month
This is a monthly result, not yet steady profitability. Chairman Michael Jordaan, the former head of First National Bank, said the bank got there sooner than expected: its buyer, Lesaka Technologies, had forecast break-even in December. Bank Zero reached it with 275,000 direct customers, and without making any loans. It expects a healthy profit in 2027.
Four things helped:
- Low build cost: it built its own core banking system for under R300 million.
- Business customers: businesses make up 18% of accounts, well above the 10% originally planned.
- Zero fees: it earns from deposits and transactions rather than charges.
- Alliance banking: partners bring their own customers, so Bank Zero spends little on marketing.
Banking as a service
Under its “alliance banking” model, fintechs, retailers and platforms issue cards on Bank Zero’s infrastructure instead of building their own bank. Mukuru’s card was previously backed by Standard Bank. CEO Yatin Narsai said sponsor banks have raised prices for fintechs sharply, in some cases by 100% or more, and Bank Zero offered a cheaper option.
Bank Zero has applied to regulators to start lending, and is awaiting approval for foreign exchange services. Lesaka agreed to buy the bank for R1.1 billion in 2025; the deal’s deadline has been extended to 31 January 2027.
Why it matters
Nigeria’s digital banks, such as Kuda, Moniepoint and OPay, grew by offering free transfers and low fees. Bank Zero shows that a lean, zero-fee bank can cover its costs without a huge customer base, if it keeps build costs low and lets partners bring customers. That same banking-as-a-service model is spreading in Nigeria too.
Source: IT News Africa, citing Bloomberg and TechCentral.
