The utterances around the establishment of a state bank become even more interesting as we reflect on the archaic approaches banks continue to take in servicing the real needs of consumers, writes Sifiso Skenjana.
In his February budget speech, Finance Minister Mboweni announced that the country is ready to launch a state bank and that it would possibly be housed under the Post Office. At face value, the idea of it remains particularly interesting given the little competition we see in the domestic banking space, which is dominated by five large banks – Standard Bank, ABSA, FNB, Nedbank and Capitec.
Our banking environment has been largely supply-driven as opposed to being demand-led. This means that banks have more readily flooded the market with products, without those products necessarily being sought after or actually intrinsically needed.