SA has a small but fast-growing fintech industry, presenting considerable benefits and risks. As a result, regulators need an understanding of the fintech landscape in South Africa in order to manage risks in a way that does not stifle innovation.
The FSCA has just reported that the Intergovernmental Fintech Working Group (IFWG) published its first Fintech Landscaping Report. “This balance between innovation and risk is critical to enable fintech to deliver on growth and access,” the FSCA shares in a media release.
About the report
|●||The report captures data obtained in 2019 in respect of all active Fintechs founded in the past eleven years that have a physical presence serving South African consumers.|
|●||The results of the market scanning exercise revealed a total of 217 active operational fintech companies in South Africa at the time of analysis (May 2019).|
|●||The data reveals that the largest and most mature of these segments is payments, with 68 entities actively operating within this segment.|
|●||The second largest segment is B2B Tech support with 48 active operational entities.|
|●||Incumbents have felt the threat of fintechs and have realised the importance of re-evaluating their products offerings, customer journeys and internal processes.|
|●||Fintechs are therefore competing with these large incumbent financial services providers for market share.|
“As a result of this project, 2020 will see the IFWG introduce an online portal consisting of a Fintech Innovation Hub and a Fintech database. The Fintech Innovation Hub will include a Regulatory Guidance Unit, a Regulatory Sandbox and an Innovation Accelerator component,” the FSCA reports.
The planned launch date for the portal is the first quarter of 2020.
Click here to read the FSCA media release.
Click here to download the full Fintech Landscaping Report.