The Fintech Association of South Africa: Advancing the Fintech Ecosystem through Collaboration and Education
In this podcast episode, “Championing Change: FINASA and the Rise of FinTech in South Africa”, host Danielle Lawrence speaks with Darren Franks, Andres Perez and Kagisho Dichaba, Co-founders of the Fintech Association of South Africa. The association’s mission is to advance the fintech ecosystem in the country through collaboration among members and international participants. Education, awareness, inclusivity, and diversity are highlighted as crucial elements within the industry.
Gratitude for a Warm Reception and the Need for Collaboration in Fintech Regulation
Andres Perez and Darren Franks express their gratitude for the warm reception they’ve received from the South African FinTech community, despite being foreigners. They also acknowledge existing challenges in FinTech regulation, emphasizing the need for greater collaboration between regulators and FinTech companies. Clarity in frameworks and consumer protection are deemed essential.
Digital Transformation and Collaboration between Traditional Financial Institutions and Fintechs
Collaboration between traditional financial institutions and fintechs is discussed, with digital transformation as a focal point. An example mentioned is Standard Bank’s shift product, which illustrates how banks can embrace fintech to attract new customers. Perez and Franks emphasize that digital transformation extends beyond technology and requires a cultural shift within banks.
Evolving Fintech Ecosystem and Challenges Faced
The fintech ecosystem in South Africa is evolving, with efforts to address challenges and foster collaboration for the benefit of the industry and economy. Challenges in implementing fintech solutions within the banking and financial services industry include the need for agile teams, marketing expertise, and a lack of understanding among bankers regarding fintech’s impact. Regulatory issues and cybersecurity concerns are additional obstacles.
The Importance of Customer-Centricity and Financial Inclusion
Customer-centricity is crucial for banks to retain customers and increase revenue per user, especially in a competitive landscape where setting up bank accounts has become easier. The perception of fintech has matured, recognizing its focus on financial inclusion and improving lives. However, there is also a darker side, exemplified by digital loan companies that exploit consumers.
Addressing Industry Challenges and Empowering Communities
The Fintech Association of South Africa, represented by Finaster, is committed to addressing industry challenges and implementing programs like Kaazi Tech. Kaazi Tech aims to empower individuals in townships with limited access to the broader fintech ecosystem through training, mentorship, networking, and financial literacy programs. Overcoming barriers such as financial illiteracy and a lack of education about fintech is a priority.
To learn more or engage with the Fintech Association of South Africa, visit their website or connect with them on LinkedIn. They welcome new members and partnerships.