The YWBN Own the Bank Scheme offers unique opportunity for the public, particularly Historically Disadvantaged Individuals and Groupings (HDIGs) to own a piece of history - building a Mutual Bank of their own from the ground. Critically, it is an investment that will increase in time. That is the unique benefit of owning a stake in the YWBN Mutual Bank — anytime the value of the company increases, you profit.
The YWBN Own the Bank scheme is available to all the members of public including but not limited to individuals, minors, stokvels, private groups, companies, trusts, Non-South Africans, etc. Ideally, the plan is to give opportunity for HDIGs to own part of the mutual bank.
Copy of SA ID document, Proof of address and Proof of banking details.
Copy of SA ID document of legal guardian, Copy of Birth Certificate of minor, Proof of address of legal guardian and Proof of banking details of legal guardian.
Copy of valid passport, Proof of address and Proof of banking details.
Copy of CIPC registration documents, Power of Attorney (if more than 1 director), Copy of SA ID document of appointed power of attorney, Proof of address and Proof of banking details
Investors can participate in the share scheme from 01 to 30 June 2021. First, you need to join YWBN to have access to the share scheme by paying once-off non-refundable membership fee of R100.
Payments for the shares purchased should be paid via EFT to YWBN bank account. Cash deposits are not advisable, but should you wish to pay in cash please note that the bank charges incurred will be at the depositor’s expense which will affect your investment amount negatively. YWBN Banking details are as follows:
Bank Name: First National Bank
Account Holder: YWBN
Account Number: 62898777960
Ref: (reference received from YWBN registration portal)
A minimum of 100 (one hundred) shares at a nominal value of R10.00 (ten rand) each, or R1 000.00 (one thousand rand) is fully payable by any individual, stokvel, private groups, company, trust, etc. wanting to participate in the Own the Bank share scheme.
Participants shall be entitled to acquire any number of shares in the Mutual Group provided that he/she does not hold more than 200 000 (two hundred thousand) shares at a nominal value of R10.00 (ten rand) each, or R2 000 000.00 (two million rand) of total worth of shares.
Funds raised from the share scheme will be used to establish YWBN Mutual Bank in terms of section 13 of the Mutual Banks Act. In the main, the funds will be used for the development of different financial products to serve the needs of SMMEs and private individual customers. Also, the funds will go towards purchasing of assets for the Mutual Bank, shoring up liquidity for lending, licensing, regulatory capital, human resources and marketing. Further, the investment will go towards acquiring and developing proprietary technologies to increase efficiency of the Mutual Bank, i.e. data analysis technology that combines machine-learning and artificial intelligence to process large volumes of customer requests/applications much faster than traditional players including creation of up-to-date monitoring and information system, strengthening internal controls, housekeeping and reporting functions.
Shares will be allocated after they have been purchased and paid for. A share certificate will be issued after 90 days from day of allocation. YWBN reserves the right to approve share application. For every 1000 shares, the shareholder is entitled to one vote at the YWBN Mutual Bank Annual General Meeting.
Shares, which shall be paid for in full on application, shall be issued for a fixed period of 6 years/72 months after section 14 of the Mutual Banks Act (Authorisation to operate the Mutual Bank) has been granted by the Prudential Authority. The YWBN Mutual Bank is a new start up in a sector dominated by giants. Thus, it will require sustained investment to achieve scalable growth to compete well against established players. Therefore, participation in the scheme should be viewed as long-term investment.
The Bank will issue Permanent Interest Bearing Shares which shall be paid in full on application, subject to section 57 of the Mutual Banks Act. Permanent Interest Bearing Shares shall not be redeemable but may be transferable after 72 months, and may not be encumbered by serving as security against any loan granted by the Mutual Bank.
The Shareholder shall not be entitled to demand redemption of the shares before the 6 year investment period has expired. At the end of the minimum 6 year term, the shareholder can sell their stake or reinvest. Ideally, the plan is to have participants stay invested to allow time for the underlying asset, being the Mutual Bank, to appreciate in value and allow it time to gain strong footing.
Shares may be transferred, with the Mutual Bank board approval, from one member to another. A shareholder may only transfer his/her shares to another person or a recognised non-natural person. Every application for transfer shall be accompanied by the original share certificate, or other form of record and such duly completed transfer form and evidence of the ownership of the shares as the Board may require. The transferee shall sign an application form in respect of the shares to be transferred.
The participants will be able to exit based on the value of their shares on exit – on a willing buyer/ willing seller basis. Ideally, value is generated over time and positive company results, which the Bank anticipates to have generated in the 6 year locked in duration. Otherwise, the share scheme is perpetual and investors can choose to remain invested indefinitely. Investors are therefore encouraged to invest for generational wealth and legacy for their children and families and not for short term gain.
The executors or administrators of the deceased Shareholders estate shall be the only persons recognized by the Mutual Bank as having any title to the shares registered in the name of such deceased Shareholder. The executors may be registered as a shareholder in his/her representative capacity.
In the first few years, the Mutual Bank will be on a building phase. Therefore, the investment should be viewed as a long-term investment. During the first 6 (six) years, the Bank will seek to preserve the capital invested. The real return and benefit will be realized as the bank expands and introduces more products.
The Bank’s board of directors will decide on dividend payout only if there is enough money left over after all operating and expansion expenses are met. This will be very important especially in the first 6 (six) years when the company is expanding, and thus requires lots of capital.
The Mutual Bank will be diversely owned, albeit with ‘majority’ black women ownership