Nthabeleng Likotsi leads the pioneering effort of establishing the first mutual bank primarily owned by Black women

South Africa’s Prudential Authority, which operates within the administration of the South African Reserve Bank (SARB) recently announced the official registration of the Young Women in Business Network (YWBN) Mutual Bank, marking a significant milestone in the banking landscape of the country. This registration, effective from January 22 of this year, signifies the completion of the formal registration process for the bank.

The brainchild of Nthabeleng Likotsi, founder, and managing director, this achievement is the realization of a long-held dream. Likotsi has been a staunch advocate for the establishment of South Africa’s first majority Black women-owned mutual bank for several years. Her journey began in 2009 with the establishment of the Young Women in Business Network (YWBN), aimed at empowering women by fostering a network of Black professionals and businesswomen to exchange insights on investment and entrepreneurship.

In 2015, Likotsi conceptualized the YWBN Cooperative Financial Institution (CFI). The transition from a cooperative financial institution to a mutual bank was initially announced in 2018. However, the journey was not without its challenges. In 2021, YWBN faced regulatory hurdles with its Own-the-Bank share scheme and had to refund the raised funds due to compliance issues.

Undeterred, Likotsi persisted, leading to the establishment of YWBN Mutual Bank. This institution boasts several groundbreaking achievements: it is not only the first women-owned bank but also the first Black women-owned bank in South Africa. Additionally, it is the first Cooperative Financial Institution (CFI) to successfully secure a mutual banking license.

Looking ahead, Likotsi outlined the bank’s focus on its developmental phase, including activities such as capital acquisition, network expansion, and community engagement to better serve marginalized communities. While a commercial launch date has not been finalized, Likotsi emphasized the bank’s commitment to providing tailored savings and loan products, especially targeting small businesses and the unbanked population.

According to the SARB, mutual banks are relatively rare in South Africa. Apart from YWBN Mutual Bank, other examples include Bank Zero Mutual Bank, Finbond Mutual Bank, and GBS Mutual Bank.