Bank Basics
African Bank Limited is a South African-based retail commercial bank known for its commitment to financial inclusion and innovative financial products. It is not a state-owned bank or a joint venture, but a locally controlled commercial bank in South Africa that focuses on providing diversified financial services to individuals and small and medium-sized enterprises. With its brand ethos of "Audacity to Believe", African Bank is committed to empowering its clients to achieve their financial goals through flexible products and digital channels.
Name & Background
Full Name: African Bank Limited
Founded: July 31, 1975
Headquartered in Midrand, South Africa
Shareholder Background: African Bank is controlled by African Bank Holdings Limited, whose shareholding structure includes major shareholders such as local financial institutions and the Public Investment Corporation. The bank is not listed on the Johannesburg Stock Exchange (JSE), but its parent company had planned to do so by 2028. The history of African Bank dates back to 1964 when the South African Negro Chamber of Commerce (NAFCOC) initiated the establishment of a bank for the black community. After years of fundraising, R1 million was successfully raised in 1975 and approved by the South African Reserve Bank (SARB) to form the company. In 2014, it underwent restructuring due to non-performing loans, and in 2016, it restarted operations with a new look, and has been developing steadily since then.
Scope of Services
Coverage: African Bank's services are mainly concentrated in South Africa, providing nationwide financial services and no international business.
Number of offline outlets: As of 2025, African Bank has an undisclosed number of outlets in South Africa, but its branch network covers major cities and towns across the country to support financial inclusion goals.
ATM distribution: The bank offers an extensive network of ATMs to facilitate withdrawals and deposits, especially in urban and central business areas. The ATM service is compatible with the major banking networks in South Africa, ensuring inter-bank convenience. In addition, African Bank has expanded its service touchpoints through partnerships with retailers such as Shoprite.
Regulation & Compliance
Regulated: African Bank is regulated by the South African Reserve Bank (SARB) and the Financial Sector Conduct Authority (FSCA) of South Africa and complies with South Africa's strict banking regulations.
Deposit Insurance Scheme: Under South Africa's Financial Sector Laws Amendment Act, African Bank participates in the Deposit Insurance Scheme (CODI), which provides deposit protection of up to R100,000 to eligible depositors.
Recent Compliance Records: Since its restructuring in 2016, African Bank has performed well in compliance and has not recorded any major violations. The bank has responded to South Africa's response to the Financial Action Task Force (FATF) grey list, particularly in the areas of anti-money laundering (AML) and counter-terrorism financing (CTF), to ensure compliance with international standards.
Financial health
Capital adequacy ratio: African Bank's capital adequacy ratio remains robust and meets the minimum requirements of the SARB (data not disclosed, but the restructured capital structure has improved significantly).
Non-performing loan ratio: After the 2014 crisis, the non-performing loan ratio has been significantly reduced, and banks have ensured the quality of loans through more stringent credit assessment and risk management.
Liquidity Coverage Ratio: African Bank's liquidity coverage ratio is in line with regulatory requirements, and it is able to effectively respond to short-term funding needs, demonstrating strong financial resilience.
Overall Assessment: African Bank's financial health has improved significantly after the restructuring and is suitable for clients looking for stable banking services, but there are concerns about the limitations of its relatively small asset size (total assets of approximately R28,695 million as of September 2022).
Deposit & Loan Products
Deposits:
current account: Provide low-cost demand deposit accounts with low interest rates (about 0.5%-1%), suitable for daily transactions.
Time Deposits: Time deposits offer flexible tenors (3 months to 5 years) with competitive interest rates (up to 8%-9%, depending on the amount and tenor).
High-yield savings account: African Bank's investment account offers a higher yield and is suitable for customers with savings goals.
Large-denomination certificates of deposit: provide large-denomination certificates of deposit with a fixed term, and the interest rate is better than that of ordinary time deposits, which is suitable for holders of large-amount funds.
Loans:
Personal loans: African Bank focuses on personal consumption loans, with loan amounts ranging from small (thousands of rand) to larger amounts (up to R250,000), with interest rates typically ranging from 15%-25%, depending on the credit score.
Mortgages and car loans: Banks are planning to launch new products such as mortgages (expected by 2028), which are currently focused on personal loans, with car loans provided indirectly through partners.
Flexible repayment options: The loan product supports fixed repayment plans and provides debt consolidation services to help customers reduce the pressure of monthly payments.
List of common fees
Account management fee: Current accounts are charged around R10-20 per month, and monthly fees may be waived for investment accounts (subject to minimum balance requirements).
Transfer fee: Domestic transfers are free of charge through online banking or apps, while cross-border transfers are more expensive (around R50-100, depending on the amount).
Overdraft fees: Overdraft accounts may charge high interest rates (around 20%-30% per annum).
ATM inter-bank withdrawal fee: Inter-bank ATM withdrawals are about R8-12 per time, and the own ATM is free of charge.
Hidden Fee Reminder: Be aware of the minimum balance requirement (some accounts need to maintain a minimum of R500, otherwise a fine of R10-20 will be charged). Customers are advised to review the account terms regularly to avoid unexpected charges.
Digital Service Experience
App & Online Banking: African Bank's mobile banking app and online banking platform have been well received, with ratings of around 4.2-4.5 stars on the App Store and Google Play (based on user feedback). The interface is user-friendly and suitable for local users in South Africa.
Core functions: support face recognition login, real-time transfer, bill payment, and investment account management. The app is also integrated with the "Audacious Rewards" program, which allows customers to accumulate points through transactions to redeem rewards.
Technological innovation:
Tap2Glass: An innovative service that transforms NFC Android devices into POS terminals to facilitate the collection of payments by small and micro merchants.
AI customer service: Provide basic AI chatbots to deal with common problems, but complex problems still require human support.
Open Banking APIs: African Bank is exploring open banking APIs and working with third parties (such as MTN's MoMo) to improve its service ecosystem.
Quality of customer service
Service channels: 24/7 phone support (hotline response time of about 2-5 minutes), live chat (fast response during business hours, slightly slower after business hours), and social media support (Twitter and WhatsApp are very responsive).
Complaint handling: The complaint rate is low, the average resolution time is about 3-7 working days, and the user satisfaction is high (about 80% of customers say that the problem has been effectively resolved).
Multi-language support: Mainly support English and local South African languages (e.g., Zulu, Xhosa), limited support for non-native languages (e.g. Chinese), cross-border users may need to rely on English services.
Safety and security measures
Security of funds: Client deposits (up to R100,000) are protected through the CODI Deposit Insurance Scheme. Banks use real-time transaction monitoring and multi-factor authentication to reduce the risk of fraud.
Data security: African Bank adheres to the ISO 27001 information security standard and has not reported major data breaches. Customer data is stored and transmitted in an encrypted manner for a high level of security.
Anti-fraud technology: Equipped with real-time transaction alerts and anomaly detection systems to keep accounts safe.
Featured Services & Differentiation
Segments:
Student Accounts: Fee-free current accounts are available for young people to manage their daily expenses.
Exclusive wealth management for the elderly: Launched high-yield savings products with flexible tenors and suitable for retirees.
Green Finance: Explore ESG investment products to support sustainable development and green projects.
High Net Worth Services: There are no traditional private banking services, but a customized portfolio is available for high net worth clients, with a threshold of around R1 million.
Market Position & Accolades
Industry Ranking: African Bank is in the upper middle of the range of retail banks in South Africa, with small assets (not in the top 50 globally, but influential in South Africa).
Awards: Its "Audacious Rewards" program has won several South African Banking Innovation Awards, and its digital services have been named one of the "Best Customer Experience".
Market performance: The customer base is growing rapidly (5.4 million by 2024), showing strong market competitiveness, especially in the area of financial inclusion.
