The situation described in the content is viewed as tragic, especially considering its similarity to past issues involving private-sector systems set up by MasterCard and Cash Paymaster Services 

These systems were particularly detrimental to the country's poorest residents 

Unlike private-sector firms driven by profit, Postbank's downfall is attributed in part to its lack of system competence 

Ajay Banga, the President of the World Bank, took office without a comprehensive investigation into his previous involvement in predatory financing 

Banga championed a significant fintech partnership with Net1, a data services firm, in South Africa over a decade ago 

In 2016, the World Bank's International Finance Corporation acquired a 22% stake in Net1 for $107 million, leading to significant consequences 

Net1's involvement led to the collateralization of welfare payments in South Africa, affecting over 25 million people, a substantial portion of the population 

MasterCard partnered with Net1 to distribute grants for the South African Social Security Agency, aiming to bank the unbanked population and improve convenience for grant recipients 

However, Net1 used this opportunity to market additional financial products, such as micro-finance, funeral insurance, and cellphone contracts, often leaving recipients with little or no funds each month 

Net1 developed a shadow banking system that operated outside regulated financial structures, segregating welfare recipients into a monopolistic digital payment space 

The strategy effectively turned welfare benefits underwritten by the state into a new form of collateral, reversing the intended purpose of anti-poverty cash transfers