A new contender is set to enter South Africa’s rapidly evolving digital small-business banking sector.
The South African Reserve Bank (SARB) has officially approved a strategic collaboration between Access Bank South Africa and fintech startup Sava. Together, they’re set to launch a digital banking platform designed to meet the specific needs of SMEs.
With approval from SARB and the Prudential Authority, Sava is now ready to enter the market. The company has been quietly preparing behind the scenes, successfully completing industry testing, integrating into the National Payments System, and meeting all required go-live conditions. Sava has also secured licences from the Financial Sector Conduct Authority and the National Credit Regulator, ensuring full regulatory compliance.
While the green light from SARB is a significant step forward, the official launch date for the digital platform has yet to be announced.
Once operational, the new platform will face tough competition. South Africa’s digital banking sector for small businesses is crowded, with platforms such as TymeBank and Bank Zero leading the charge. Established players such as First National Bank, Discovery Bank, and Capitec Bank also offer SME-tailored, digital services, adding to the competitive landscape.
Despite these challenges, Access Bank South Africa and Sava remain confident in their approach.
“We are thrilled to have received the necessary regulatory approvals, enabling Sava to transform the SME banking landscape in South Africa,” says Kolawole Olajide, Sava’s chief executive. “Our platform addresses the unique challenges faced by SMEs, serving diverse businesses from traditional sectors to emerging fintech players, empowering them to thrive in an increasingly digital world.”
Founded in 2021 by Yoeal Haile, Federico von Bary Landesmann, and Olajide, Sava specialises in spend management solutions and accounting integrations to streamline financial processes for businesses. Operating in Kenya, Nigeria, Egypt, and South Africa, Sava’s expansion is supported by Access Bank in South Africa, with Microsoft as a supporting partner.
In March of the previous year, Sava also formed a partnership with Mastercard, aiming to enhance small, medium, and micro enterprises (SMMEs) through innovative payments technology. The collaboration provides small businesses with an online platform that integrates digital bank accounts and accounting tools.
Access Bank South Africa is a subsidiary of Access Bank Group, a financial services conglomerate based in Nigeria, with subsidiaries in nine sub-Saharan countries, the United Kingdom, and the United Arab Emirates. The group also maintains representative offices in China, India, and Lebanon.
Beyond its fintech developments, Access Bank has recently made headlines for its acquisition of Bidvest Bank in a R2.8-billion deal announced in December last year.
Read: Bidvest Bank acquisition: outcome of Moody’s rating review looms large
Access Bank first ventured into the South African market in 2021 with the acquisition of a controlling stake in Grobank. After receiving regulatory approval, it rebranded Grobank to Access Bank South Africa, transforming it into a retail commercial bank that officially opened under the new name in June 2021.
Pending regulatory approvals, the transaction is expected to be finalised by the end of the current financial year. Afterward, Access Bank plans to merge Bidvest Bank with Access Bank South Africa to create a larger platform that will strengthen its regional growth strategy across the Southern African Development Community.
The collaboration between Sava and Access Bank South Africa marks the latter’s second exclusive partnership aimed at serving the SME sector. In March 2022, Access Bank South Africa received regulatory approval from the SARB for its partnership with Lulalend, resulting in the creation of Lula. This platform offers business funding solutions, including a revolving capital facility and capital advance.
In July 2024, Lula secured a US $20 million loan from FMO, the Dutch development bank, to support underserved SMMEs in South Africa.
Additionally, Lula has received investments from the International Finance Corporation and Norfund, further solidifying its position in the South African fintech landscape.
