Digital has been rising up the executive agenda in South Africa’s financial services industry for the past decade. It has been the major driving force behind tremendous changes across the industry, allowing innovation and healthy competition to flourish. While South Africa’s traditional financial services groups are focused on digital transformation, new digital-first competition in the form of Discovery Bank, TymeBank andBankZero has entered the fray.
Digital Finance Services In South Africa
Digital has been rising up the executive agenda in South Africa’s financial services industry over the past decade. It has been the major driving force behind tremendous changes across the industry, allowing innovation and healthy competition to flourish.
Digital adoption has picked up across the board, with notable innovative moves from both incumbents and new entrants. Prompted by emerging technology, greater competition, and increased customer expectations, customers can now enjoy benefits such as opening a bank account in minutes, executing simple transactions using WhatsApp, or conveniently completing cash handling services through their local grocery stores.
Digitalization has also improved financial inclusion by lowering barriers to access through the emergence of low/zero cost banking, with new neo-banks operating on lean cost models supported by superior next-generation technology.
Digitalization has resulted in the creation of great value in the financial services industry in South Africa. However, there is still a lot more juice to be squeezed.
Opportunities where digital can deliver incremental value and transformational impact
While the seven opportunities outlined in this report help sketch the path that financial services players can take to generate more value out of digital, the future is constantly changing.
Being digital is not a destination, it’s an ongoing journey.
Beyond cyber risks, the South African financial services industry will have to manage massive internal transformational change to overcome the hurdles of legacy technology and outdated business models.
Which types of applications do digital financial services provide In South Africa?
Digital Financial Services (DFS) include a broad range of financial services accessed and delivered through digital channels, including payments, credit, savings, remittances and insurance. – Digital channels refer to the internet, mobile phones, ATMs, POS-terminals etc.
What are the main components of digital financial services In South Africa?
There are three key components of any such digital financial services: a digital transactional platform, retail agents, and the use by customers and agents of a device – most commonly a mobile phone – to transact via the platform.
How does digital finance work In South Africa?
Digital finance is the term used to describe the impact of new technologies on the financial services industry. We now interact with our bank using mobile technology. We make payments, transfer money and make investments using a variety of new tools that were not there few years ago.
How can digital financial services help develop a country ?
Digital technologies offer financial services at lower costs, fostering opportunities for large-scale inclusion by enabling institutions to serve lower-income customers profitably. Such broadened financial access can sustainably transform emerging economies.