Picture: for illustration purposes
Money, the lifeblood of the global economy, flows through channels created by banks. Their immense power, coupled with a significant influence over the economy, raises intriguing questions about the potential misuse of this influence, referred to in this context as "weaponisation". This refers to the potential prospects of banks utilising their financial clout for purposes that may detrimentally impact individuals, businesses, and the economy at large.
Nowhere is this more evident than in the ongoing situation involving the Sekunjalo Group. The closure, or impending termination, of over 50 bank accounts linked to the group, a decision collectively made by banks, could potentially damage countless lives and ripple negatively across the economy.
Moreover, these financial institutions often irrevocably alter the financial state of individuals by extending credit to those unfamiliar with or unequipped for the formal banking system. Instances such as these have previously resulted in over-indebtedness, leading to a cycle of debt due to lack of financial literacy.
The current predicament faced by the Sekunjalo Group is a stark reminder of the vulnerability of consumers when banks wield extensive influence. The closure of business accounts is the tip of the iceberg, and the prospect of banks having the ability to 'pull the plug' on consumers is daunting, to say the least. If misused, this power could leave numerous South Africans in a dire financial and emotional state.