Young Women in Business Network’s (YWBN) Mutual Bank may have lost the one opportunity it had to turn the masses in their favour at a press conference held on Monday.
YWBN Mutual Bank explains its business model
Nthabeleng Likotsi, the chair of YWBN, made a valiant attempt at selling her business model, a week after her credibility fell by the way side over a Twitter spat with a self-made financial guru.
The forward-thinking businesswoman has, up to this point, sold over a million shares of her mutual bank but, based on her needs, this is hardly a step closer to realising her objective.
In order to supplement a clientele of small businesses with competitive loans and other financial products, YWBN Mutual Bank needs at least R5 billion. This valuation, according to Likotsi, will be the building grounds for the crowdfunded bank to seed into different arenas of income, hopefully fattening the wallet over the years to come.
It requires a great deal of patience and trust that the bank will not only survive longer than five years, but that it will yield sizeable returns in a competitive market where independent credit providers hardly ever manage to sustain a foothold of the market.
Social media not buying into YWBN’s ‘black card’
Likotsi, on numerous occasions in her presser, stressed the importance of YWBN Mutual Bank. This innovative financial institution, she said, is crucial for black businesses.
“Nobody is going to be our messiah, to come and help us. Basically, that’s what we are saying,” she cried.
The businesswoman made every attempt to assure sceptics about the viability of her bank but this was effort was fruitless. On social media, YWBN Mutual Bank has been disregarded as a scam.
Nthabeleng sounds like a stockvel lady who encourages women to join a grocery stockvel but she has an escape plan already before December payouts.#YWBNmutualBank
— African Renaissance (@MadiBoity) June 14, 2021
Nthabeleng is not only bad on Twitter, even on real life she can't keep her head straight. Shouting at people is totally unnecessary!! #YWBNmutualBank
— Ms _Gupta ❤️ (@African_Spring) June 14, 2021
It maybe started by a black person, claiming to benefit black business in future..but honestly.. raising funds to start a bank to be named after a person who aspires to be a billionaire…sounds self-serving to me…#YWBNmutualBank
— Moleboheng (@Molebo_) June 14, 2021
Being the first Black woman or being black shouldn't be a selling point, where is the value proposition? What will it do for people #YWBNmutualBank
— Ntobeko°©°•°•°•™ (@MweliNtobeko) June 14, 2021
You can watch the full press briefing below, where Likotsi spends over an hour unpacking her bank’s model: