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Digitalisation was a transformative trend sweeping across industries even before the global COVID-19 pandemic changed the way we work, shop and interact. Society's ongoing transition to smart and sustainable living leverages information and communication technologies (ICT) to improve the quality of life and unlock greater convenience. And ubiquitous and seamless access to digital services underpins this trend, with the digitalisation of banking a core enabler of the emerging smart economy.
Digitalisation was already a key theme in the growth strategies of financial services providers before the global COVID-19 pandemic struck. The need to innovate in response to shifting customer demands around engagement and experience, rising industry disruption from digital-native challenger banks or pivots from major digital-native businesses, and the need to respond to a dynamic regulatory environment has spurred digital transformation and entrenched an innovation agenda across the industry.
The draft Conduct of Financial Institutions Bill was recently published. Once enacted, the CoFI Bill may become one of the first pieces of legislation that explicitly seeks to develop fintech regulation in South Africa.
On Tuesday, China pledged to invest $14.7bn in South Africa and grant loans to Eskom and SAA. While this investment brings the country closer to President Ramaphosa’s target to raise US$ 100 billion in foreign direct investment, some argue that China’s intentions are not what they seem.
Banks set to lose the ‘offer’ as digital disruption continues to transform industry. Banks are finding it increasingly difficult to reach and ensure value to their customers in light of the challenge by existing and new fintech competitors who are muscling in on the ‘offer’ - the point at which a customer’s process of research and assimilation culminates in the customer acting.
A large majority of global banks, insurers and investment managers intend to increase their partnerships with FinTech companies over the next 3 - 5 years and expect an average return on investment of 20% on their innovation projects, according to a new PwC report Redrawing the lines: FinTech’s growing influence on Financial Services.