TymeBank threatens legal action over 6,500% spike in ID verification fees
- TymeBank plans to sue the Department of Home Affairs over a 6,500% increase in identity verification fees.
- The cost of identity checks will rise from 15 cents to 10 rands, significantly impacting onboarding costs for low-income customers.
- Onboarding a Social Relief of Distress recipient will see costs increase from R55 to R75 due to the new verification fees.
The drastic increase in identity verification fees poses a significant threat to financial inclusion in South Africa, particularly for vulnerable populations. This move could stifle the growth of digital banking and exacerbate existing inequalities in access to financial services. It is crucial for stakeholders to engage in dialogue to find a more sustainable solution that balances regulatory needs with the realities of the market.
