Canada    FinTech Guide    Chapter 8    South Africa

8. Online Banking Services
South Africa  South Africa

As previously mentioned the economic growth is slow and because unemployment figures are extremely high, no income and lack of education influences the use of online banking negatively. The majority of South Africans are unbanked because of low income and those that are banked do not necessarily make use of this service.

Legal Affairs

Banking services are regulated by the Financial Advisory and Intermediary Services Act 37/2002 (FAIS) and a license is granted in terms of this act to be an Authorised Financial Services Provider (FSP). FSPs are regulated by the Financial Services Board.

Online Banking further falls under the Electronic Communications and Transaction Act 25/2002 and is only regulated.

Costs for an FSP license is calculated upon application, it’s not expensive in principle. Levies must be paid every year depending on the size of the business.

Economic Conditions

Despite the amount of competition, this is not a big market as unemployment figures are high, income is low and therefore online banking is not the most consumed product for the majority of South Africans. The biggest companies in the market are:

  • ABSA
  • Nedbank
  • First National Bank
  • Investec
  • Capitec
  • Standard Bank

Contributing Authors

Garlicke & Bousfield Inc

Brian Jennings
Durban, South Africa

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Chapter Index:

1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018