The Intended Success Of FinTech In South Africa: South Africa has long been recognized as the hub of financial technology development in the continent, and 2018 is seen as the year when it will accept cutting edge breakthroughs with open arms.
The following facets are where FinTech has played an active role over the course of the previous years in South Africa.
- The Banking Sector
The concept of digital payment is booming like never before in the country. The sector is benefiting from the pace, efficiency, and accuracy of payments which can be made through these upgraded models of payment. ‘Finnovation Africa’ has declared that it is planning on integrating secured Blockchain technology and increased Artificial Intelligence into the systems. The leading banks of South Africa are committed to introducing these secure changes in the upcoming years.
Security in cryptocurrencies, specially Bitcoins, is becoming more and more commonplace. The overall market cap of Bitcoins extends to roughly $230 billion, and despite the volatility of the currency, the currency has been able to house prices as close to $30K per digital coin. Digital wallets are being enhanced by FinTech in South Africa in terms of the security with which they withhold the money and controlling the accessibility any external authority can have to it. The biggest challenge which will be addressed is the adjoined working of cryptocurrency networks with the government.
- Financial Monitoring and Partnerships
South Africa’s Reserve Bank has declared a team of individuals who are responsible for monitoring the progress of financial institutions in the country. FinTech is bringing in a lot of partnerships through interests and insurances in the country with financial institutions, and it is primarily because of the increased security of payment which is being offered in the country. The advancement of FinTechs in the country is leading to better relations with the corporate sector, which is bringing South Africa to an exciting stage in these times of progression.
- The General Population
There is a strong segment of the country which is classified as the unbanked sector in the country, and as more and more people switch to smartphones in the country it is becoming a challenge to make online payments more convenient and low cost to operate. FinTechs are trying to achieve this goal by finding new technologies suitable for all such phones so that everyone has an equal opportunity to access domestic and global financial markets.