Clients of online bank 20Twenty will be able to make cash or cheque deposits at Absa from Monday.
The closure of Saambou Bank`s branches from the end of this month, following the bank`s purchase by FirstRand, would have left 20Twenty clients unable to make deposits.
In a newsletter to 20Twenty clients, Christo Davel, the online bank`s CEO, emphasises that Absa is not buying 20Twenty and that the deal is simply a business arrangement.
20Twenty has been in negotiations with a consortium of buyers in a bid to secure its future.
Davel said this week he could not comment on the state of those talks as nothing had yet been finalised.
20Twenty`s woes began in February when parent Saambou was placed under curatorship.
Saambou had a 65% interest in 20Twenty. The infrastructure and risk, as well as the banking licence for the venture, also rested with Saambou.
FirstRand acquired parts of Saambou in May, but that deal excluded Saambou`s micro-lending book, 20Twenty, and Saambou`s IT infrastructure and staff.
Davel says online payments and transfers can be carried out as usual, and the bank`s 20one card can still be used for withdrawals at any ATM.
Share