South Africa’s Fintech startup landscape
Over the last 10 years, South Africa has established itself as one of Africa’s leading financial technology (FinTech) markets. Whilst the country is generally a land fraught with opportunities for African entrepreneurs looking to build startups, financial tech has dominated this conversation. Let’s explore what makes FinTech tick in the rainbow nation and why 40% of all FinTech revenue in Africa is captured there.
Market segments
The table below illustrates the biggest markets being pursued by FinTech startups in South Africa
| Segment | Description | Startup example |
| Payments | Entities that perform part or all of the functions required to send and/or receive value from one party to another via any digital channel. This includes parties in the value chain that facilitate or enable clearing and settlement processes. | Yoco |
| Lending | Entities that facilitate the borrowing of money or financing assets for individual consumers and/or small businesses with traditional and non-traditional financiers through internet, cloud or app-based platforms. | Jumo |
| Savings & Deposits | Entities that are deposit-taking and provide digital banking services as well as savings products and layby arrangements using mobile technology. | Tyme Bank |
| Insurtech | Entities that provide part or all of the insurance value chain functions (e.g. communication, risk analysis, distribution) through the use of specific technologies (e.g. artificial intelligence, robotics) instead of traditional methods. | Click2Sure |
| Investments | Entities that provide digital platforms for investment and/or trading activity (including cryptocurrency) or enable individuals to trade on traditional exchanges/platforms from their own device(s). | EasyEquities |
| Financial planning | Entities that use artificial intelligence and/or robotics to provide financial advice to individuals or small businesses by recommending suitable savings, investment or credit products and managing financial wellness. | 22Seven |
| Capital raising | Equity or debt funding platforms that allow businesses or individuals to raise funds for investment purposes or charitable causes. This segment also includes digital due diligence service providers. | |
| B2B Tech providers | Entities that create, or support white label platforms and/or products provided by other financial services providers, for use by other fintechs but do not provide financial services to the general public through their own brand name. |
source: Fintech Scoping in South Africa report
FinTech enablers?
Infrastructure & access
In terms of banking infrastructure - South Africa is head and shoulders above the rest of the continent making it a very attractive place to build and deploy technological solutions to problems.