The role of banks in society extends far beyond mere financial transactions. File Picture: Dimpho Maja / Independent Newspapers
Masibongwe Sihlahla
The role of banks in society extends far beyond mere financial transactions. They have a significant impact on the community, and their actions can either promote development or hinder it.
In South Africa, where the legacy of apartheid still looms large, banks have a critical role to play in promoting economic empowerment and community development.
However, instead of supporting black-owned companies, many banks have been exposed of victimising them such as the case of Sekunjalo who had their bank accounts closed. This is a reprehensible state of affairs that needs to change if the poor majority is ever to escape poverty.
In a democratic South Africa banks have a moral obligation to support black-owned companies, which have historically been excluded under the racist Colonial Settler Regime of Apartheid from economic opportunities.
The apartheid regime deliberately excluded black people from economic participation, and this legacy continues to affect black entrepreneurs today.
Black-owned companies face numerous challenges, including limited access to capital, lack of networks, and limited business skills.
In a democratic South Africa banks should and must play a crucial role in addressing these challenges by providing financial support, mentorship, and guidance to those who suffered immerseration under apartheid.
What we have instead, is that many banks have been accused of victimising black-owned companies through discriminatory lending practices, exorbitant fees, and unfair treatment such as maliciously closing bank accounts of black companies.
This is not only morally wrong but also has serious consequences for the economy. By supporting black-owned companies, banks can promote economic growth, create jobs, and reduce inequality.
One of the main ways banks can support black-owned companies is by providing access to capital. Many black entrepreneurs struggle to access funding, which hinders their ability to start or grow their businesses.
Banks can provide loans, grants, and other forms of financing to help black-owned companies get off the ground. They can also offer specialised programs and products tailored to the needs of black entrepreneurs.
Banks can also provide mentorship and guidance to black-owned companies. Many black entrepreneurs lack the business skills and networks needed to succeed.
Banks can offer training programs, workshops, and business coaching to help black entrepreneurs develop the skills they need to grow their businesses.
They can also connect black entrepreneurs with experienced business leaders and mentors who can provide guidance and support.
Furthermore, banks can play a critical role in promoting financial inclusion. Many black people in South Africa lack access to basic banking services, which makes it difficult for them to participate in the formal economy.
Banks can expand their services to rural areas and townships, providing basic banking services such as savings accounts, credit, and debit cards. This can help to promote financial stability and reduce poverty.
So why are banks not playing a more active role in supporting black-owned companies? The answer lies in the profit-driven culture of the banking industry. Banks are driven by the pursuit of profit, and they often prioritise their own interests over those of their customers.
This has led to a culture of greed and exploitation, where banks prioritise short-term profits over long-term sustainability. We also suspect that there is a culture of fighting the poor who happen to be black instead of fighting poverty.
This however is not only morally wrong but also unsustainable in the long run. By supporting black-owned companies, banks can promote economic growth, create jobs, and reduce inequality amongst the black majority. This can lead to increased economic stability, which is good for democracy.
Banks have a moral obligation to prioritise the needs of their black customers and the community over their own interests. We know that inequality in the form of poverty is a threat to democracy.
In looking ahead, banks have a moral obligation and a critical role to play in promoting community development and supporting black-owned companies.
Instead of victimising, banks should be providing financial support, mentorship, and guidance to help black entrepreneurs succeed. By doing so, they can promote economic growth, create jobs, and reduce inequality.
It is time for banks to take their social responsibility seriously and prioritise the needs of their customers and the black community over their own narrow political interests.
* Masibongwe Sihlahla is an Independent Writer and Political Commentator
** The views expressed do not necessarily reflect the views of IOL or Independent Media.
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