The future of Internet bank 20Twenty remains cloudy as parent company and majority holder in the bank, Saambou, is placed under curatorship. One analyst has described the venture as "finished".
[20Twenty] is losing R7 million a month and I can`t see a buyer for it - all the other banks have their own Internet divisions. In my opinion it`s finished.
Bradley Meyer, banking analyst, Vantage Investment Solutions
Uncertainty surrounding Saambou`s future sparked a run on the bank on Wednesday and Thursday last week as depositors rushed to withdraw savings. Three days and R1 billion later, the minister of finance stepped in and placed the bank under curatorship.
Saambou has a 65% interest in 20Twenty, and the infrastructure and risk, as well as the banking licence for the venture rest with Saambou.
20Twenty bankers have subsequently been included in the curator`s decision to freeze all withdrawals from the bank until later this week.
Bradley Meyer, banking analyst at Vantage Investment Solutions, says he can`t see 20Twenty continuing given the current situation with Saambou.
"I see Saambou being broken up into its various divisions and being sold off. 20Twenty is not a profitable venture. It`s losing R7 million a month and I can`t see a buyer for it - all the other banks have their own Internet divisions. In my opinion it`s finished," comments Meyer.
The Internet bank left it to the last minute to inform its customers that there was a problem. Concerned clients who phoned the 20Twenty customer care line late on Saturday afternoon where reassured by 20Twenty`s "Wired Warriors" that all was well.
Today, however, the only accessible information on the 20Twenty Web site is a message from Saambou surrounding the curatorship, and the 20Twenty call centre has a recorded message telling callers to visit the Web site for information.
According to the curatorship message on the 20Twenty Web site, "any monies deposited after 13h00, 9 February 2002 will be freely available", however, since the only accessible link on the Web site is the Saambou press release, it remains a mystery as to how 20Twenty clients can transfer those funds.
20Twenty began operating in July last year and currently has 40 000 account holders.
Christo Davel, CEO of 20Twenty, says that under the terms of the curatorship, he is unable to comment on the company`s financial position.
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Read more on Saambou`s downfall on ZAFinance.com
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