South Africa’s newest financial institution, Teba Bank, will focus on mobilising the savings and developing rural communities financially, chief executive officer Jenny Hoffman said. Teba, which for the past 24 years provided basic banking services to miners, will now target low income earners and those not formally employed in rural areas. Hoffman said the bank already had an equity base of R245m, which had been internally generated. According to Hoffman, 20% of those living in rural areas have savings accounts, but demand is in the region of 44%. She said there was also a demand for housing loans, funeral insurance schemes and fixed-term deposits. The bank’s clients will also be encouraged to save before personal loans are offered. “This is in line with international practices, which have found that savings-linked credit is a reliable method for poverty alleviation,” Hoffman said.