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.
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.
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:
- First National Bank
- Standard Bank
Durban, South Africa