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The head of the Portfolio Committee on Communications and Digital Technologies, Khusela Sangoni-Diko, has praised Postbank’s significant accomplishment in officially becoming a registered Financial Services Provider (FSP) under the Financial Sector Conduct Authority.

This indicates that Postbank is now licensed and supervised to offer financial services that comply with the requirements established by the regulatory body, according to the Financial Advisory and Intermediary Services Act (FAIS Act).

Diko characterized the progress as a major step forward in the continuous effort to convert Postbank into a complete state-owned bank, equipped to promote financial inclusion and encourage economic involvement for every South African.

“This is a significant step forward and a clear validation. The approval of Postbank as a financial services entity indicates that the organization is consistently fulfilling essential regulatory standards and enhancing its ability to function within South Africa’s financial industry,” stated Ms. Diko.

She also mentioned that the accomplishment highlights the ongoing efforts of the Department of Communications and Digital Technologies along with Postbank to restructure governance, improve adherence to regulations, and regain public trust in the organization.

“As a committee, we have continuously highlighted the significance of robust governance, responsibility, and adherence to regulations. This achievement shows that Postbank is heading in the correct direction and establishes a strong base for its development into a fully operational state-owned bank,” she added.

Diko emphasized the significance of Postbank in providing affordable and easy-to-access financial services, especially for underprivileged and rural areas.

She mentioned that a well-equipped Postbank could have the ability to make a significant impact in expanding financial inclusion, lowering banking costs, and ensuring that no South African is excluded from accessing vital financial services.

Although acknowledging the advancements, Diko emphasized that additional efforts are needed to obtain a complete banking license and reach operational preparedness.

She praised all parties involved in reaching this achievement and is eager for continued advancement in setting up a state-owned bank that meets the nation’s developmental requirements.SAnews.gov.za