What To Look Out For In South African Fintech This Year


TymeBank, BankZero and Discovery Bank being introduced will definitely rejuvenate the industry and ensure customers have better choices to make. It should also aid the existing banks to succumb to improving on their customer value propositions and customer experiences. Doing this, we should expect better focus from the popular banks on their several digital channels.

We are also looking forward to fresh newbies from other industries – mobile network operators will most likely ensure mobile money products do more with payments offerings while insurers and retailers keep on progressing into the banking sector.


This has caught the undivided attention of many after its remarkable rise in 2018 and then the fall in the Bitcoin price. Some industry observers feel it is the end of crypto. I beg to differ. There has definitely been a major setback but crypto’s present market cap is just below US$150 billion. This might be little as per global asset but it is not unimportant.

Whoever cares to know should know now, Cryptocurrency is not going anywhere. We are still unsure if and when cryptos like Bitcoin will ever reach their $20,000 summit in the nearest future but putting money in cryptocurrencies is not a short term investment trend and should always be viewed as long term. Tim Draper, a highly—respected venture capitalists, wasn’t wrong when he went on and on about crypto taking over in the long run. To be fair, the wise cash is still investing in it despite its unpredictability.

One of the main results of the setback is the fall of initial coin offerings (ICO). Close to $10 billion came about via ICOs during January to April, but a study conducted by ICO advisory firm, Statis Group proved that over eighty percent were frauds and swindles and investors lost major money. With the fall of the crypto price, ICOs didn’t entice much anymore and i feel that is the right way to go. Putting money in anything demands proper research, as the several investors who lost huge cash in ICOs found out, even though it was via the hard way, in 2018. So expect a major decrease in the number of ICOs as per capital that needs to be raised.

We hope that we automatically see a decrease in the amount of crypto investment and pyramid schemes, which is solely motivated by nothing else but greed. Many have been scammed, Crypto is very eruptive, risky and unsafe. Do not engage in any kind of Crypto investment unless you have the adequate knowledge required, and even if you do, don’t go overboard with your investment. The world has presented no simple way to earn cash. If you still decide to invest in it, exchanges like Luno are apt for your buying, selling and saving purposes.

Expect regulators to be involved more from now on – most of them have fintech and cryptocurrency groups and they make sure there is proper knowledge of it.


We expect continual activities as per Insurtech. Last year brought us a several fresh, amazing beginners like Indie, Naked and Pineapple who are supported by mega institutions. Of course it won’t be easy for these niche insurers to scale rapidly but do not be surprised when they grow and for new beginners to come into the market. For instance, Root Insurance simplifies things for insurance freshers to find their way to the market via their open API software supported by Guardrisk.

Existing insurers are expected to make sure greater focus on their digital offerings is achieved to provide competitions for these new recruits, and this is music to the ears of consumers. We will also notice mobile network operators, retailers and banks delving into the insurance world.

Increased Savings

Online applications responsible for the provision of automated financial guidance and services, like OUTvest, which aims to entice younger customers via their digital offering and simplified investing process have been launched. Other savings platforms such as Easy Equities, that ensures easy investment in equities, have really improved. I am personally expecting to see beginners come into this world like Akiba and Franc, increasing their market share.

Financial Introduction Focus

In a recent AlphaCode Incubate initiative, which detects South African financial services entrepreneurs with amazing ideas and business plans that could enhance the financial services sector, we noticed several businesses attempting to tackle the issue of financial exclusion and coming with ways to equip low income earners with the appropriate financial services products. These business organizations will be supported for success this year as they grow. For instance, Prospa, makes provision for a low-income savings product as iSpani ensures marketing and sales access are provided for insurers in townships.

Brand New SME Financing Solutions

Given how South Africa’s economy is the focus these days, it is important to build SMEs. Plus the added fact that there is pressure on corporates to change their supply chain as new BEE charters are taken up, we will definitely notice an increased amount of SME Financing Solutions that will aid black SMEs to have greater access to the market. Watch out for models like Nisa Finance and InvoiceWorx with their unconventional offerings for SMEs also. I am of the opinion that a business banking reorganization will be the order of the day as well, with Capitec getting into the SME world after buying Mercantile Bank. Permit me to say that is a major game changer.

Amazing Fintech Startups To Look Out For This Year

1. Pineapple — This is a a digital insurer, whose aim is to reduce costs, cap profits and eradicate scams to ensure the creation of value from an insurance policy.
2. Akiba — Lets you monitor your saving goal, remain focused and receive rewards for saving.
3. Franc — This is SA’s least expensive way to invest. It aids stokvel members to pump cash into the money market and exchange-traded funds (ETFs) for free.
4. Prospa — A savings center for those that earn between US$140 and US$570 monthly.
5. Nisa Finance — An invoice financing home responsible for aiding financiers to dish out invoice-backed loans to small businesses rapidly and for a price that is very affordable. Meanwhile, InvoiceWorx is an platform financed by inventory that aids struggling retailers with lot of credit from suppliers.


Folami David
Folami David is young and passionate about Technology Innovation.Loves music and soccer.

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