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

Click here (then“like” the page) to follow Bruce on Facebook.

Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.

Subscribe to our Business Wrap Newsletter

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)


Recommended

by NEWSROOM AI

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
South Africa’s draft Mining Charter 3 for dummies (highly intelligent ones)

South Africa’s draft Mining Charter 3 for dummies (highly intelligent ones)

The Money Show’s Bruce Whitfield interviews Strata Legal (Pty) Ltd Director Brandon Irsigler.

How ‘mature’ leaders create value (and how destructive immature one always are)

How ‘mature’ leaders create value (and how destructive immature one always are)

Who comes to mind? The Money Show’s Bruce Whitfield interviews Rob Worthington-Smith, founder of FarSightFirms.

Hillbrow, Ponte City (don’t be scared) is where it’s at. How to experience it...

Hillbrow, Ponte City (don’t be scared) is where it’s at. How to experience it...

The Money Show’s Bruce Whitfield interviews Dlala Nje founders Nickolaus Bauer and Michal Luptak.

Meet Eitan Stern, man on a mission to provide affordable, set-fee legal services

Meet Eitan Stern, man on a mission to provide affordable, set-fee legal services

The Legalese Director doesn't look like a lawyer. His “law firm”, he insists, is not a law firm. Bruce Whitfield interviews him…

Did you know? Tourism supports 10.3% of ALL jobs in South Africa

Did you know? Tourism supports 10.3% of ALL jobs in South Africa

The Money Show’s Bruce Whitfield interviews David Frost, CEO at Southern Africa Tourism Services Association.

Not fond of your bank/insurer/advisor? Cheer up! Soon you won’t need them...

Not fond of your bank/insurer/advisor? Cheer up! Soon you won’t need them...

People need banking; they don’t need banks. Enter “FinTech” - software that provides financial services.

Popular articles
'Basetsana Kumalo explained to me that this was the worst week of her life'

'Basetsana Kumalo explained to me that this was the worst week of her life'

Social Media Law Expert, Emma Sadleir, says the Randburg court has issued a protection order for the Kumalo's.

A third Metrorail train goes up in flames in less than a month

A third Metrorail train goes up in flames in less than a month

Regional manager, Richard Walker, says there's an indication of arson in all three incidents but the motive is still not clear.

'Cyril Ramaphosa is the weakest president of the ANC since 1994' - analyst

'Cyril Ramaphosa is the weakest president of the ANC since 1994' - analyst

Political analyst Prince Mashele talks about the ANC NEC meeting contradicting messages stemming from this.

Max du Preez opens up about money (and losing everything on Vrye Weekblad)

Max du Preez opens up about money (and losing everything on Vrye Weekblad)

The Money Show’s Bruce Whitfield interviews the famed and fearless journalist about his money history, hopes and beliefs.

2 best companies on the JSE to invest in now (by Nefg Fund Managers)

2 best companies on the JSE to invest in now (by Nefg Fund Managers)

Not sure which shares to buy? Bruce Whitfield interviews Gerbrand Smit, Chief Investment Officer at Nefg Fund Managers.

Malema under fire after 'Indians are racist' comment

Malema under fire after 'Indians are racist' comment

SA Institute of Race Relations media head Micheal Morris says politicians must be cautious of such divisive statements they make.

[WATCH] Eusebius Mckaiser: I call BS on Malema's racism targeting Indians

[WATCH] Eusebius Mckaiser: I call BS on Malema's racism targeting Indians

Show host Eusebius McKaiser says EFF's leader Julius Malema's comments on Indians are grossly unacceptable and irresponsible.

Here's how to check your load shedding schedule in Cape Town

Here's how to check your load shedding schedule in Cape Town

Stage 1 load s​hedding has been declared nationally. The City of Cape Town has urged residents to take note of the schedules.

Man who dumped body of family dog in street demoted at top JHB law firm

Man who dumped body of family dog in street demoted at top JHB law firm

Media law guru Emma Sadleir warns employees online that there are many potential events that could bring a company into disrepute.