South African digital bank Bank Zero has reached break-even for the first time, recording the milestone in August 2026 as its deposit base more than doubled over the past year.
The bank, which launched in 2021, said business accounts now account for 18% of its customer book. This is ahead of the 10% business growth it had projected when developing its original business case.
More than 80% of its business customers are registered companies, according to Bank Zero. These customers generally maintain higher balances and carry out more transactions.
Bank Zero said its business model was designed to become sustainable with a much smaller customer base than many new banking entrants require. It developed its own core banking platform, with the goal of reaching break-even at around 100,000 customers.
The bank also pointed to its fee-free model and technology as key differences from traditional banking. It claims its platform has enabled banking without card fraud and phishing, while allowing customers to hold money without paying account fees.
The introduction of alliance banking partnerships has also contributed to its growth. Announced in April 2026, the model allows fintech companies, retailers and digital platforms to offer card products using Bank Zero’s infrastructure.
The partnerships allow Bank Zero to generate deposits and transaction income without having to acquire every customer directly, while giving partners access to its banking technology.
Bank Zero said its banking platform was developed through a cumulative investment of just under R300 million, which it says is substantially below the billions typically associated with building new banking platforms.
The bank cautioned that monthly earnings could remain uneven in the short term. However, it expects stronger revenue growth during 2027, followed by increased profitability and returns.
Main Image: Daily Investor
