Postbank has successfully registered as a licensed financial services provider (FSP) with the Financial Sector Conduct Authority (FSCA), the Department of Communications and Digital Technologies (DCDT) said yesterday.

The Witness reports that the license, issued under the Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS Act), gives Postbank the ability to provide financial advice and intermediary services relating to financial products such as insurance and loans within a regulated framework.

Before its registration with FSCA, Postbank was limited to accepting deposits and was unable to offer full banking services such as issuing credit cards.

DCDT Deputy Minister Mondli Gungubele welcomed the development as proof that Postbank has met stringent regulatory requirements relating to governance, compliance, risk management, operational capability, and consumer protection.

Gungubele said the license reflects progress in rebuilding Postbank into a sustainable and well-governed state-owned retail bank, for serving the needs of the unbanked and partnering government financial services to citizens.

The DCDT said the development forms part of Postbank’s five-year transformation strategy built around three strategic pillars: stabilise, build, and differentiate.

The department said that obtaining the FSP license was a key step in the ‘build’ phase of this strategy, as it enables Postbank to expand the financial services while operating within South Africa’s regulated financial services framework.

“For customers and social grant beneficiaries who rely on Postbank, the license provides additional assurance that services are delivered under a regulatory regime designed to protect consumers and ensure transparency and accountability,” added the department.

“For government and other stakeholders, the development signals continued progress in building a capable state-owned banking institution that advances financial inclusion and expands access to affordable financial services for communities that remain underserved by the traditional banking sector,” the department said.

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