South Africans may soon have another banking option to choose from, but this one comes from a company many people already know well. Pepkor, the retail giant behind brands such as PEP, Ackermans, Shoe City, Tekkie Town, and other household names, has received regulatory approval to move forward with plans to launch its own bank, currently operating under the codename “plusb”. The bank is expected to officially launch in April 2027, pending final regulatory approvals.
For many South Africans, the idea of getting banking services from a retailer may sound unusual at first. However, Pepkor has quietly been building a large financial services business for years. Millions of customers already use services offered through the group, including money transfers, insurance products, bill payments, airtime purchases, cash deposits and withdrawals, as well as smartphone financing and rental solutions. The company believes these existing relationships place it in a strong position to expand into full-scale banking.
What makes this development particularly interesting is that Pepkor is targeting ordinary South Africans rather than high-income earners. The retailer has built its reputation on affordability, and its banking strategy appears to follow the same approach. The company has indicated that it wants to provide low-cost banking solutions to consumers, particularly those who may feel underserved by traditional banks or who are looking for simpler, more affordable financial products.
One of the biggest advantages Pepkor has over many new banking entrants is its enormous physical footprint. While most digital banks focus heavily on mobile apps, Pepkor will be able to combine digital banking with in-person support through thousands of stores across South Africa. Customers will potentially be able to access banking services while shopping at familiar retail locations, making banking more convenient for people who still rely heavily on cash transactions or prefer face-to-face assistance. The retailer already has more than 6,500 stores across its various brands, giving it one of the largest retail networks in the country.
The company has ambitious plans for the new bank. Pepkor hopes to attract approximately 1.8 million primary banking customers within five years of launch. Executives believe the combination of affordable banking products, widespread store access and growing smartphone adoption among consumers could help them achieve this target. The bank is expected to offer a mix of digital and physical services designed to meet the needs of South Africans who want convenient banking without excessive fees.
Pepkor’s confidence is backed by strong growth in its financial services division. The retailer recently reported significant increases in revenue and profit from its financial services operations, showing that consumers are increasingly using the financial products already available through the group. This growth has strengthened the company’s belief that expanding into banking is a logical next step.
The retailer has also been investing heavily in technology to support its banking ambitions. In 2025, Pepkor acquired CloudBadger Technologies, a company that develops banking software and fintech solutions. This acquisition is expected to provide much of the technology infrastructure needed to launch and operate the new bank. The company has already submitted additional regulatory applications required before it can officially begin operating as a bank.
Interestingly, Pepkor says the entire banking project will cost less than initially expected. While the company originally projected spending around R1 billion, executives now estimate the total investment required to build and launch the bank will be no more than R920 million. This reduction in expected costs may help improve the bank’s profitability and sustainability in its early years.
For consumers, the arrival of another bank could be good news. More competition in the banking sector often encourages institutions to improve service levels, introduce innovative products and keep fees competitive. South Africans have already seen how new entrants have disrupted the market over the past decade, forcing traditional banks to adapt to changing customer expectations. Pepkor appears to be positioning itself as another challenger focused on affordability and accessibility.
While details about specific products and fees have not yet been released, many South Africans will be watching closely to see whether Pepkor can replicate its retail success in the banking industry. If the company succeeds, consumers could soon be opening bank accounts, making payments, and managing their finances through a brand they already trust for everyday shopping.
With the planned launch set for April 2027, the next year is likely to reveal more information about what products will be available, how the bank will operate and whether it can truly offer a more affordable banking experience for millions of South Africans. For now, one thing is clear: the banking landscape is about to become a lot more competitive.
