Fintech Startups are reshaping the financial services landscape by tackling problems that traditional banks have struggled to address. With innovative solutions rooted in technology and local insight, these startups provide a fresh approach to challenges like financial inclusion, cost efficiency, and accessibility.
Here’s how South Africa’s fintech disruptors are breaking the mold and stepping up where banks fall short – and your opportunity to nominate the Best FinTech Startup in the South African FinTech Awards 2025.
Here’s how South Africa’s fintech disruptors are breaking the mold and stepping up where banks fall short – and your opportunity to nominate the Best FinTech Startup in the South African FinTech Awards 2025.
1. Financial Inclusion for the Underserved
In South Africa, millions remain unbanked or underbanked, often due to barriers like geographic isolation, lack of formal identification, or high costs associated with traditional banking. Fintech companies are addressing these issues head-on by offering low-cost, accessible financial services that meet the needs of these underserved populations.
Case Study: Mama Money
Mama Money provides affordable international money transfer services, especially for migrant communities in South Africa. With low fees and a simple mobile-based system, Mama Money allows users to send money to over 50 countries without needing a bank account, making financial services accessible for South Africans who are part of the unbanked population (Mama Money).
Impact: By enabling financial transactions for those who typically lack access to traditional banking, Mama Money helps to financially empower underserved communities and support economic activity and could be a strong contender for Best FinTech Startup.
2. Adapting to Unstable Infrastructure
One of the unique challenges fintechs face in South Africa is operating in an environment of unstable power and internet infrastructure. Load-shedding, or scheduled power cuts, is a regular occurrence, often disrupting business operations. While banks rely on centralised data centres that are vulnerable to such disruptions, fintech startups are leveraging cloud-based solutions and resilient tech to continue operating even during outages.
Case Study: Ozow
Ozow is a digital payments platform offering instant bank-to-bank payment solutions that can operate with minimal infrastructure requirements. Designed to be seamless and reliable, Ozow’s services cater to a wide range of businesses and consumers, ensuring transactions go through even when connectivity is limited (Ozow).
Impact: Ozow’s adaptable infrastructure ensures that South African businesses can continue processing transactions during power and connectivity disruptions, providing stability in an often-unstable environment.
3. Addressing the High Cost of Banking
South African banks historically charge some of the highest fees on the continent, making banking a costly service for many. Fintech startups are undercutting these fees by offering transparent, low-cost alternatives, thus increasing affordability and access.
Case Study: Lulalend
Lulalend is a fintech that focuses on providing fast and affordable funding to small businesses often overlooked by traditional banks. By offering short-term loans with a transparent fee structure and quick digital application process, Lulalend allows entrepreneurs to access capital without incurring exorbitant costs or facing lengthy approval processes (Lulalend).
Impact: Lulalend’s approach helps small businesses access the capital they need to grow and thrive, bypassing the high fees and slow processes of conventional banks.
4. Pioneering Financial Literacy and Education
Fintech companies in South Africa understand that to expand financial inclusion, they need to go beyond just offering services—they also need to educate users. Many fintechs are now providing educational resources to help users understand how to manage their finances and use digital tools effectively.
Case Study: EasyEquities
EasyEquities has democratised investing by allowing users to buy shares and ETFs with minimal amounts. The platform also provides extensive educational resources, including tutorials, webinars, and blogs, enabling South Africans to understand the stock market and make informed investment decisions (EasyEquities).
Impact: EasyEquities’ focus on financial literacy allows users from all income levels to participate in investing, empowering them to build wealth with knowledge and confidence.
5. Streamlining Cross-Border Transactions
Navigating regulatory hurdles and ensuring reliable cross-border payments is a significant challenge for financial services providers. Traditional banks often struggle to provide seamless, affordable cross-border transactions, but fintechs are creating innovative solutions.
Case Study: Onafriq
Previously known as MFS Africa, Onafriq provides a robust cross-border payment platform connecting multiple mobile money networks and bank accounts across Africa. This approach not only simplifies international payments but also ensures that these transactions remain compliant with local regulations (Onafriq).
Impact: Onafriq’s cross-border network facilitates smoother and more affordable international payments, fostering trade and economic interaction across African borders.
Fintech Leading the Way
South African fintechs like Mama Money, Ozow, Lulalend, EasyEquities, and Onafriq are redefining financial services with innovative, adaptable, and cost-effective solutions that reach segments of the population left out by traditional banks. By addressing local challenges, these fintech companies are not only filling gaps but are also setting new standards for the financial industry.
