Bank Zero and Green Riders are working together to create employment for “thousands of youth by providing access to e-bikes, which enables them to become riders in the last-mile delivery industry”.
Bank Zero used its banking system to develop a customised commercial solution that offers bespoke functionality for Green Riders and its drivers, who all bank with Bank Zero.
ESG Global recently caught up with Bank Zero CEO Yatin Narsai to ask him three clever questions about how the partnership with Green Riders.
Bank Zero’s partnership with Green Riders addresses immediate economic inclusivity. However, how does the bank envision its role in fostering long-term sustainable development, particularly in addressing systemic challenges like digital literacy and access to broader financial education among the micro-entrepreneurs it supports?
It’s a known fact that SMEs directly drive employment, and although micro-enterprises may only be an “employee of one”, each such micro-enterprise which is created, is one more person who is guaranteed an income for them and their family. And when more than a thousand such micro-enterprises are created, it starts making a real difference. Especially because these individuals were all previously unemployed.
And that is a key point for us when we look at financial inclusion – there are enough banks who focus on banking those who are marginalised, whereas our focus in on leveraging our bank to better enable those businesses who turn marginalised youth into financially active contributors to our economy. For us this is where we can add effective value with tangible results i.e. we drive financial inclusivity indirectly but effectively.
And that is why this Green Riders partnership is exciting us so much. We were able to customise our core banking system for Green Riders so that they can connect the funders of these drivers’ e-bikes directly to the drivers accounts and from there directly to the down-payments of these e-bikes. And they could do that while ensuring that the drivers pay nothing from their own pockets towards any bank charges (since all are fees are zero.)
We are hoping to build similar partnerships with other such commercial businesses who make a difference in creating employment among previously excluded players in the SA economy.
While the zero-fee banking model significantly reduces financial barriers, what other financial instruments or mechanisms is Bank Zero exploring to further promote and support the transition to a green economy among its business customers, particularly in sectors like last-mile delivery, where environmental impact is a key consideration?
Note that it’s not only our zero-fee model which creates the opportunities, but our ability to easily customise a solution which makes sense for that business. As a digital bank we ourselves have a very environmentally light footprint. Other than that, our focus is on flexing our core banking system to support businesses that make a difference – as per above answer.
How does the bank ensure that its focus on technological innovation and cost-effectiveness does not inadvertently exclude vulnerable populations who may lack access to digital infrastructure or financial literacy, particularly in a South African context?
As per above answer – we love working with those businesses who drive the inclusion (via activation) of previously vulnerable populations.
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