RMB recently released the SA FinTech in motion Report. The paper looked at who the FinTech players are in South Africa as well as the ecosystem in which they operate.
According to the report, the South African financial services sector is undergoing rapid change in the face of increased technological adoption and the accompanying consumer demand for better, more affordable products and services. Most of this disruption has been in the retail banking sector, but the threat to investment banking and capital markets is imminent.
“I think the insurance companies are going to be the big disruptors”, Dominique Collett, FinTech investment specialist at RMI Holdings shares. The ongoing technological innovations that are disrupting the insurance industry are referred to as InsurTech. The large majority of innovation and disruption in the South African InsurTech space has taken place in short-term insurance and digital distribution. Click2Sure and Pineapple are two examples.
Challenges facing the Insurtech and risk industries are:
- Understanding the regulatory environment
- Finding the right companies to partner with
- Keeping up with the technological changes in the industry
- Gaining a true understanding of the complex insurance market
Click here to read a BusinessTech article on some of the interesting findings.
National Treasury also recently gave a programme update on Fintech policies and regulatory frameworks. A Working Group was also formed to develop a common understanding among regulators and policymakers of FinTech developments and relevant policy and regulatory implications for the South African financial sector and economy. It also seeks to develop and co-ordinate an approach to FinTech policy making in the country. Click here to read our recent article on the subject matter.