The disruptive impact of financial technologies on the financial services industry in South Africa

Abstract

The financial services industry in South Africa has been experiencing disruptions due to the emergence of financial technologies (fintechs). Therefore, the primary objective of this study was to investigate the impact fintechs have on the financial services industry in South Africa. A mixed methods research design was used with an inductive approach and pragmatism paradigm to accomplish this. Interviews were conducted with eighteen industry experts and seventeen customers, while one hundred and twenty customers completed questionnaires. Qualitative data were analysed using Atlas.ti for thematic analysis, and SPSS was used for quantitative analysis. Structural equation modeling was employed to develop the fintech adoption model. The findings showed that fintechs positively and negatively impact the financial services industry. While they have a negative impact on established financial services providers (incumbents) and regulators, they have a positive impact on consumers. The negative impact includes reduced profits for incumbents, increased competition for incumbents, and regulatory risks. However, fintechs have also brought significant benefits to the industry, such as cost reduction for financial institutions, lower prices for financial products and services for consumers, improved efficiency, personalised products, and services, increased financial inclusion, convenience, and innovation. In response to the negative impact, incumbents have responded to this disruption by collaborating with fintechs, expanding their roles, improving customer experience, and reducing prices of financial products and services. Regulators have also established regulatory frameworks, such as the Intergovernmental Fintech Working Group and National Payment System Framework and Strategy Vision 2025, to address these disruptions. This study has shown that the COVID-19 pandemic has accelerated the adoption of fintechs in South Africa. The study also discovered that several factors influence the adoption of fintechs in South Africa, including perceived costs, facilitating conditions, perceived risk, perceived trust, ubiquity, and self-efficacy. The study suggests ways for incumbents to improve competitiveness and customer satisfaction while advocating for regulatory adjustments to accommodate fintechs. This study contributes to the attainment of the sustainable development goal number nine.

Imboni yezinsizakalo zezezimali eNingizimu Afrika ike yabhekana nokuphazamiseka ngenxa yokuvela kobuchwepheshe bezezimali (eyaziwa ngokuthi yi-fintechs). Ukuphenya umthelela we-fintechs embonini, lolu cwaningo lusebenzise idizayini yocwaningo lwezindlela ezixubile ngendlela yokufundisa kanye nepragmathizimu pharadimu yepragmatism. Inhlolokhono yenziwe nochwepheshe bemboni abayi-18 namakhasimende ayi-17, futhi amakhasimende ayi-120 agcwalisa imibuzo. Idatha yekhwalithi yahlaziywa kusetshenziswa i-Atlas.ti yokuhlaziywa kwetimu, futhi i-SPSS yasetshenziselwa ukuhlaziya inani. Imodeli yesakhiwo sezibalo yasetshenziswa ukuthuthukisa imodeli yokwamukela i-fintech. Okutholakele kubonisa ukuthi i-fintechs inomthelela omuhle futhi omubi embonini yezinsizakalo zezezimali. Nakuba benomthelela ongemuhle kubahlinzeki benkonzo yezezimali asebekhulile (abasesikhundleni) kanye nabalawuli, banomthelela omuhle kubathengi. Umthelela ongemuhle uhlanganisa inzuzo encishisiwe yalabo abasezikhundleni, ukwanda kokuncintisana kwabaphethe kanye nezingozi zokulawula. Kodwa-ke, i-fintechs nayo ilethe izinzuzo ezibalulekile embonini, njengokwehliswa kwezindleko zezikhungo zezezimali, amanani aphansi emikhiqizo yezezimali namasevisi kubathengi, ukusebenza kahle okuthuthukisiwe, imikhiqizo eqondene nomuntu siqu kanye nezinsizakalo, ukukhuphuka kokufakwa kwezimali, ukunethezeka nokusungula izinto ezintsha. Ukusabela kumthelela ongemuhle, abasesikhundleni baye basabela kulokhu kuphazamiseka ngokusebenzisana ne-fintechs, ukwandisa izindima zabo, ukuthuthukisa ulwazi lwamakhasimende nokunciphisa amanani emikhiqizo namasevisi ezezimali. Abalawuli baphinde basungula izinhlaka zokulawula, ezifana ne-Intergovernmental Fintech Working Group, Uhlaka Lukazwelonke Lohlelo Lokukhokha kanye Nombono Wecebo Ka-2025, ukuze kubhekwane nalokhu kuphazamiseka. Lolu cwaningo luveze ukuthi ubhubhane loKhuvethe lusheshise ukwamukelwa kwe-fintechs eNingizimu Afrika. Ucwaningo luphinde lwathola ukuthi izici ezimbalwa zinethonya ekwamukelweni kwe-fintechs eNingizimu Afrika, okuhlanganisa izindleko ezicatshangwayo, izimo ezisizayo, ubungozi obucatshangelwayo, ukwethembeka okucatshangwayo, ukutholakala kwendawo yonke kanye nokusebenza kahle kwakho.

Intasitiri ya ditirelo tsa matlotlo mo Aforika Borwa e itemogela dikgoreletsi ka ntlha ya go tlhagelela ga dithekenoloji tsa matlotlo (fintechs). Go batlisisa ka ga tshusumetso ya difintech mo intasitiring, tshekatsheko e e dirisitse mekgwa e e tswakantshitsweng ya popo ya dipatlisiso gammogo le mokgwa o o tlhotlheletsang le wa tekatekano. Dipuisano di tshotswe le baitseanape ba intasitiri ba ba 18 gammogo le bareki ba le 17. Bareki ba le 120 bone ba tladitse dipotsopatlisiso. Atlas.ti e ne ya dirisiwa go sekaseka tshedimosetso ya khwaletheithifi gammogo le tshekatsheko ya tlhogo, mme SPSS e ne ya diriswa go ka sekaseka tshedimosetso ya khwanthitheithifi. Modula wa tekatekano ya popego o dirisitswe go ka bopa modula wa kamogelo ya fintech. Diphitlhelelo di supa fa difintech di tshusumetsa intasitiri ya ditirelo tsa matlotlo ka ditsela tse di siameng le tse di sa siamang. Le fa di na le ditshusumetso tse di sa siamang mo batlameding ba ba itlhomileng ba ditirelo tsa matlotlo (batshodi) le mo balaoding, di na le tshusumetso e e siameng mo bareking. Tshusumetso e e sa siamang e akaretsa dipoelo tse di fokotsegileng tsa batshodi, kgaisano e e oketsegileng ya batshodi gammogo le botshosetsi jwa bolaodi. Le fa go le jalo, difintech di tlisitse dipoelo mo intasitiring jaaka ditshenyegelo tse di fokotsegileng tsa ditheo tsa matlotlo, ditlhotlhwa tse di kwa tlase tsa dithoto le ditirelo tsa matlotlo tsa bareki, bokgoni jo bo tokafaditsweng, dithoto le ditirelo tse di lebaganeng le beng ba tsone, kakaretso ya matlotlo e e oketsegileng, nolofatso le tlhamosešwa. Ka go leka go ka baakanya tshusumetso e e sa siamang e, batshodi ba tsere tshwetso ya go ka dirisanyammogo le difintech, go atolosa ditiro tsa bone, go tokafatsa maitemogelo a bareki le go ka theosa ditlhotlhwa tsa dithoto le ditirelo tsa matlotlo. Go siamisa dikgoreletsi tse, balaodi le bone ba tlhamile matlhomeso a bolaodi, jaaka Intergovernmental Fintech Working Group, National Payment System Framework le Strategy Vision 2025. Tshekatsheko e e supile gore leroborobo la COVID-19 le itlhaganedisitse tiriso ya difintech mo Aforika Borwa. Tshekatsheko e e fitlhetse gape le gore dintlha tse di mmalwa di tlhotlheletsa tiriso ya difintech mo Aforika Borwa mme di akaretsa ditshenyegelo tse di bonwang, maemo a a tlhofofatsang, botshosetsi jo bo bonwang, boikanyego jo bo bonwang, tlwaelego le boitshepi.