SA financial regulations are still caught in a time-warp
Financial system stifles migration into digital age and suffocates growth of digital-led economy
Access to finance is fundamental to society’s prosperity and development. According to the UN, more than 2-billion people are currently excluded from mainstream financial services. Microsoft co-founder Bill Gates once said people did not need banks, they needed banking services, and predicted that banks would soon cease to exist. Traditional banks are failing to close the financial exclusion gap — many people do not trust banks and find their financial products unaffordable. As a result, many poor people choose to keep their money at home and get credit informally. In SA more than 70% of the adult population have transactional bank accounts. However, this masks reality as most people withdraw their money as soon as it is deposited into their accounts. Even though SA has one of the most robust and sophisticated banking sectors in the world, most transactions are still done through cash. Financial inclusion requires the availability and adoption of financial products (transactional, p...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.