The Science Of ...

How tech is threatening banks in South Africa (and changing money, forever)

Image courtesy of InvestmentZen images.

From digital banks to mobile-payment solutions; technology is set to change the South African financial services landscape at a pace that will continue to surprise even the most hardcore non-believer.

So said Dominique Collett, Head of AlphaCode, a Rand Merchant Investments club for fintech startup entrepreneurs.

The Money Show’s Bruce Whitfield interviewed Collett for his weekly “The Science Of” feature.

Collett spoke about the following fintech related topics, sharing her opinion:

Digital banks

Discovery Bank and CBA Tyme – both digital banks – will start operating in South Africa later this year.

SME financing

Companies such as Merchant Capital and Lula Lend will continue to grow.

Bitcoin

Expect to see more of local companies like Luno (BitX).

Data analytics

Institutions are beginning to understand that they need to work with startups such as Isazi Consulting and Emerge Analytics to offer a service that they cannot build in-house.

Partnerships

Partnerships are an important aspect when we look at the growth of fintech.

Bank and insurance executives are beginning to understand this, and we will start seeing more successful partnerships between the large institutions and the smaller fintechs.

Mobile payments

We’ve seen the rapid development of mobile phone payment solutions such as SnapScan, Zapper and Wicode.

Price comparison websites

South African consumers are becoming more aware of the lack of transparency around banking charges and interest rates.

They are demanding more information on how much they pay, and they will rely on technology to supply the answers.

According to AlphaCode, www.fincheck.co.za stands out above the rest.

Real estate disruptors

New-age real estate advisors such as Leadhome and Propertyfox are threatening the traditional market with their non-traditional fee and commission structures.

Robo-advisors

We will see robo-advisors become a buzzword and a mainstream product as big players launch their own robo-advisors.

For more detail listen to the interview in the audio below (and/or scroll down for quotes from it).

We’d rather disrupt ourselves than be disrupted.

Dominique Collett, Rand Merchant Investments

You can’t corrupt the system [Bitcoin].

Dominique Collett, Rand Merchant Investments

South Africa probably has one of the most advanced financial systems in the world.

Dominique Collett, Rand Merchant Investments

Isazi is a home-grown machine learning expert.

Dominique Collett, Rand Merchant Investments

We are strategic investors.

Dominique Collett, Rand Merchant Investments

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Article brought to us by Old Mutual.


This article first appeared on 702 : How tech is threatening banks in South Africa (and changing money, forever)


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