Sunday, November 24African Digital Business Magazine

Tag: FinTech in South Africa

Fintech, South Africa News, Startups

THE RISE OF FINTECH INNOVATION IN SA: GOING BEYOND PAYMENTS TO TRANSFORM ACCESS AND OPPORTUNITIES FOR STARTUPS

By Annelene Dippenaar Two decades ago, a startup or small business had limited options when it came to processing transactions, with cash being the only option for many. Startups by their very nature also lacked credit histories, making it difficult to apply for finance, and leaving them vulnerable to unaffordable loans when seeking financial support to fund their business needs. Today, the picture is very different, with access to digital finance platforms, management tools, and mobile banking transforming how these businesses can operate. According to the Centre for Strategic and International Studies (CSIS), digitalisation has enabled 700 million people in developing countries to gain access to formal financial services between 2011 and 2014, with 62% of adults having a bank or mobile...
Modernising and regulating SA’s payments industry
Fintech, South Africa News

Modernising and regulating SA’s payments industry

In the second half of 2022, the South African Reserve Bank (SARB) announced it has its sights set on stricter regulations for the South African payments ecosystem “to ensure financial stability in a world of increasingly innovative and disruptive technology”. Though some new fintech players winced at the thought, it is a necessary move if South Africa wants to keep up with international trends, notes Andrew Springate, CEO of tech and financial gateway service provider PAYM8. Fintechs and Virtual banks are increasingly grabbing a larger share of market space, but often taking on more risk than traditional banks due to their ability to scale up rapidly, says the International Monetary Fund. “Though stricter regulation might it more difficult for new players to enter the market, payments mus...
Fintech, South Africa News

Fintech, Ofin, tackles behavioural changes needed to address financial inclusion

It is a common belief that financial access should lead to financial prosperity. According to the World Bank, financial inclusion is defined as all people and businesses having access to useful and affordable financial products and services that meet their needs. Sakhile Mabena, CEO, Ofin, a venture-backed fintech startup specialising in Behavioural Data Analytics, Financial Process Automation, Behaviour-based Financing and SME Behaviour Nudges, says that to successfully address financial inclusion in Africa it is important to address the financial behaviours and leverage technology to better enable users to become more bankable. Mabena, previously a World Economic Forum Global Shaper, has together with his team, developed an app that focuses on changing financial behaviour, which will ...
Efficient Payment Solutions Essential for SME Survival
Fintech, South Africa News

Efficient Payment Solutions Essential for SME Survival

Small and Medium-sized Enterprises (SMEs) have long been hailed as the lifeblood of the economy. Now, in the wake of the COVID-19 crisis, they are critical for its recovery. Not only do they contribute 35-50% of national GDP globally, they also drive over two-thirds of new job creation[i]. Ultimately, the more SMEs succeed, the better our economy performs. However, their success – and survival – hinges largely on cash flow management. This is according to Francois Hamer, Business Development Lead at Pay@ - a leading payment aggregator and provider of secure payment solutions. With cashflow management being the reason why 82% of small businesses fail[ii],  Pay@ has developed Yap – an electronic bill presentment and payment tool for on-the-go invoicing and payment requests, specifically for ...