Fintech
During this virtual mission you will learn more about the developments and opportunities regarding the Fintech value chain. The focus is mainly on payment systems, services provided by banks and insurance companies, cyber security, technologies such as AI and financial inclusion.
You will also get an good insight of projects in which parties want to cooperate internationally. Through online matchmaking you come into contact with local companies and institutions that are active in this sector.
For whom?
The mission is open to companies and knowledge institutions that offer fintech solutions.
South African Fintech sector
Fintech is showing strong growth in Africa. In 2019, more than 200 fintechs were active in South Africa. Most people have a smartphone and are open to the adoption of new technology. Various start-ups and scale-ups are growing fast, for example the mobile payment provider Yoco. Over 120,000 small entrepreneurs now use Yoco's services.
South Africa ranks fourth in EY's fintech adoption index, with 82% higher than the Netherlands. Africa has a strong population growth, which is accompanied by a growing middle class. This predicts significant growth in demand for financial services such as loans, insurance, digital payments and real estate.
South Africa is the financial heart of Africa. Johannesburg is home to Africa's largest banks: Standard Bank, ABSA, Nedbank, Rand Merchant Bank, FNB. Johannesburg and Cape Town are home to many African headquarters of multinationals. Cape Town is a creative hub and has a vibrant start-up scene. There is a growing number of venture capital and angel investors active in the sector. In addition to the banking sector, the insurance sector in South Africa is also well developed with companies such as Discovery, Liberty and Sanlam (Africa's largest insurance company).
Opportunities and Challenges
South African banks and insurers are rapidly adapting to the ongoing developments in fintech. Banks are looking for ways to improve and facilitate services. This includes open banking (sharing payment data), payment systems, automation of processes and security of financial data (cybersecurity). This applies to both consumer and investment banks, for example in securities trading services. There are also opportunities in international payments (such as remittances by diaspora) and the application of blockchain technology, for example in international trade.
Challenges lie in financial inclusion: providing financial services to the poorer part of the population; reaching the informal economy. Many digital developments are taking place in this area, and in high gear due to the Covid-19 pandemic.
