Here's how Postbank is gearing up to become a state bank
Postbank is ready to take up the role of a state bank, with plans to roll out 100 new branches across the country.
This is according to communications minister Khumbudzo Ntshavheni.
Speaking to media this week, Ntshavheni said the bank is assessing which post office branches will be brought on board and upgrading will begin soon to develop a proper banking infrastructure.
She said the bank will operate within the same facilities as the post office.
“We are targeting to open 100 branches. Postbank has been doing an assessment to see which post office branches are profitable, and those will be brought on board and start the infrastructure revamp that is required.
“Currently there’s no proper banking infrastructure. A bank operates at a different level, so they must start to put in the necessary infrastructure so that when the licence comes the bank will be ready,” said Ntshavheni.
Security breaches remain a concern
The Reserve Bank gave Postbank another chance to fix security breaches and address other outstanding issues if it is to retain its participation in the national payment system.
Reserve Bank spokesperson Thoraya Pandy told Business Times that Postbank had met most of the requirements to retain its status.
“The outstanding requirement that relates to the swapping out of cards that were compromised and issued to their clients, including the SA Social Services Agency (Sassa) beneficiaries, was not fully met.
“To achieve this final requirement by the Reserve Bank, Postbank must request all the affected cardholders to come to its offices to cancel the current cards and reissue them with new cards,” said Pandy.
The minister said government is working with Sassa and the social development department to sort out the issues of Sassa cards and the manipulation of the system.
Glitches in the systems
Previously, many Sassa grant beneficiaries struggled to access their money at post offices after outlets experienced glitches in their systems.
Interim Postbank CEO Lucas Ndala apologised for the inconvenience caused.
“In recent months, Postbank has been experiencing technical glitches that disrupted the smooth withdrawal of social assistance benefits.
“Following extensive investigations, we have uncovered network attacks by criminal elements determined to commit systematic ATM card fraud-related crimes on Postbank payments using sophisticated modus operandi which requires further investigation.
“As a mitigating exercise, and in consultation with our partners after the resurgence of these criminal activities at the inception of the December payments, it has become necessary that Postbank suspends Sassa grant withdrawals at ATMs for clients using the Sassa gold cards issued by Postbank.”
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