10 up-and-coming South Africa fintechs shaping financial services now

A new generation of South African start-ups are leveraging emerging tech to boost inclusion across the financial services industry, and lower the cost of transaction services for businesses.

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The financial sector in Africa — which has a huge unbanked population and a young demographic hooked on mobile phones —  is ripe for disruption, and a new generation of creative South African fintech start-ups is taking the lead in offering innovative  services to enterrprises and consumers alike.

The financial sector in Africa is responding to real-world conditions by offering services such as mobile banking, and various technologies that lower the cost of access to transaction services for enterprises. In 2019, African tech start-ups broke records. The African tech sector's attractiveness to investors is the highest it has ever been, with much of the interest being directed towards ventures within the financial services sector.

Financial inclusion secured the top spot when it comes to deal volume and value last year, with ventures that improve access to financial services being awarded over 54% of total investment, according to a report by Partech Partners. An investment summary report for 2019 from London-based research firm, Briter Bridges, also noted the trend, highlighting South Africa as one of the top investment regions.  

South Africa already has fintech success stories

Fintech is, generally speaking, technology that is applied to financial services or the management of transaction operations in businesses. While a number of countries in sub-Saharan Africa, including most recently Mauritius, are trying to lay the foundation for a thriving fintech start-up scene, South Africa already has a number of fintech success stories. These include the likes of Yoco, Tyme Bank, Jumo and Luno. These brands are at a more advanced stage than other start-ups, having successfully partnered with big corporates, grown a large customer base, attracted big investments and challenged the industry status quo. But there are also a variety of smaller fintech ventures looking to grow.

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