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Fintech Developments in South Africa
South Africa is an emerging fintech hub (tier-2) in the middle category along with Nigeria, Kenya, Egypt, Mauritius, Ghana, and Tunisia. Some of the reasons why it becomes a fintech hub are because of its large population, well-established and operating banks starting cooperation with fintech startups, Cape Town’s role in hosting 47% of fintech startups, 500 other startups, and CiTi (Cape Innovation and Technology Initiative), the oldest technology incubator in Africa (The Fintech Times, 2021).
It should be noted that South Africa not only gave birth to several fintechs that provide innovative solutions for their own country, but also contribute to the African continent and the global scene. For example, fintechs born in South Africa but not limited to domestic operations are Jumo, Yoco, Retail Capital, The Sun Exchange, Naked Insurance, Wealth Migrate, and TymeBank.
Fintech is developing in South Africa with a big impact on the banking world there. There are five banks in South Africa that are the most representative in the retail banking sector, namely ABSA, FNB, Nedbank, Standard Bank, and Capitec Bank. Except for Capitec Bank from 2015 to 2017, there was a decrease in the number of physical offices or branch offices in the other four banks.
The development of fintech is forcing these big banks to embrace technology as part of…
