According to Wikipedia financial technology, often shortened to FinTech or fintech, is the new technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance.
In an earlier Personal Finance article, Dominique Collett explores the South African fintech predictions for 2019. The predictions are based on what AlphaCode, a RMI incubation, acceleration and investment initiative, track from international trends in this space. Some of these predictions include:
- Digital Banks
- New entrants to the industry and traditional banks focussing on their digital channels
- Cryptocurrency is here to stay. Regulators are also likely to get more involved in the industry – most have fintech and cryptocurrency working groups and they are ensuring they have a good understanding of the asset class.
- Expectancy for niche players to grow and new entrants to appear in the market.
- More savings products
- The introduction of alternative savings platforms to increase.
- Focus on financial inclusion
- An increase in focus to provide low income customers with relevant financial services products.
- Innovative SME financing solutions
- An increase in the number of SME financing solutions that enable black SMEs to gain greater market access
- More funding options
- A number of international venture capitalists have already invested in SA fintechs in 2018 – this can just grow even further.
Click here to read the Personal Finance article that showcases specific examples of fintech start-ups to watch.