Tag: lending

South Africa should carefully assess how short-term instalment products are interpreted before Buy Now, Pay Later (BNPL) data shapes access to mainstream credit. The country could risk turning BNPL into a product that shuts people out of mainstream credit rather than helping them into it. This could happen if BNPL data enters credit-scoring systems that were never designed to interpret this type of product fairly.

In our current economic climate, many Micro, Small and Medium Enterprises (MSMEs) are facing a harsh reality. Although the market is awash with money, access to traditional credit remains limited. This is largely due to regulations like Basel III, which require banks to hold more capital and tighten their risk assessments.

South Africa’s financial markets are entering a new era. The Johannesburg Interbank Average Rate (JIBAR), long the anchor of domestic funding and lending, will soon be replaced by the South African Rand Overnight Index Average (ZARONIA). This transition is reshaping how interest rates are priced.

While some South Africans may have been notified by their banks, many consumers are not aware of the recent change in South Africa's credit reporting system, where banks are now required to report overdrafts if consumers are overdrawn by more than R500 for a period of 30 days.

The 2025 national budget speech has been delivered. As a result, predictions suggest possible PAYE and VAT increases. These forecasted hikes signal tighter financial conditions for consumers. In response, maintaining a strong credit score has become more critical than ever. It’s not just key for accessing loans. Importantly, it also shapes employment prospects and long-term financial security.

For more than half of all South Africans, Small and Medium Enterprises (SMEs) are the reason they are currently employed. This vast network of entrepreneurs, representing 98.5% of South Africa’s commercial enterprises, contribute 40% of the country’s Gross Domestic Product (GDP).

Conversations about the war for talent in financial services have persisted for many years. Competition to attract skilled individuals has always been intense, with high demand for talented professionals. This competition has intensified recently as hiring activity accelerates to meet today's significant challenges.

So, your idea has taken off and is wildly successful. Next step is to franchise it and make some serious money, right? Not so fast: while the franchising model can be applied to almost any industry, not all businesses are ‘franchisable’. The first step to building a successful franchise is having a concept that has been growing well as a freestanding business, and being able to understand how the business operates and what is at the root of its success.

The vidcast looks at the increase in the number of unauthorised lenders and unpack the concerns around licensing in the lending space. We also provide information useful to consumers looking to validate lender licensing.

In today's dynamic business environment, entrepreneurs are at the forefront of reshaping industries. They challenge conventional norms, redefine traditional practices and drive forward innovation. Yet, to turn their groundbreaking ideas into reality, entrepreneurs often need financial support. This is where funding becomes pivotal, enabling businesses to scale their operations and make their mark on the world.