The Future of Banking in South Africa

The Future of Banking in South Africa Banks are redefining their strategies to become a customer owner by building a diverse partner ecosystem, providing personalized experiences through Dynamic Segmentation and with a larger focus around ESG.

The banking industry in South Africa is highly concentrated, with 83% of the industry’s deposits being held by the largest four banks. However, the banking landscape is changing as banks face increasing competition from newly-established banks, technology-enabled start-ups, and a growing number of retailers offering financial services including credit products. This is forcing incumbent banks to place increasing emphasis on growing customer numbers by offering more innovative products to attract lower-income earners. Many are also exploring opportunities for collaboration with new tech offerings.

A new bank with a focus on simplicity and lower fees led to incumbent banks developing similar, low priced value propositions for customers. Incumbent banks responded through the introduction of entry-level bank accounts with either a small or zero monthly fee. Competition in the industry has been increasing, with three newcomers in the last three years. All three new entrants have digitally driven business models, with limited physical infrastructure, reflecting a growing trend in the provision of banking services globally.

New entrants are reducing fees further, as well as introducing different distribution models and launching innovative value propositions for customers. Physical infrastructure, legacy systems and high staff numbers account for the biggest costs for traditional banks. New entrants are supported by new banking technology, often cloud based, which can substantially reduce the operating costs of financial institutions.

The entry of these players has also introduced different distribution models (for example partnerships with retailers to give customers more convenient access points for basic services like cash in and cash out). Leveraging existing infrastructure has allowed these banks to avoid expensive branch infrastructure costs. Another trend impacting banking more broadly is the creation of platform businesses, or the platformification of financial services. In many instances, this supports the notion of open finance (e.g. the ability to integrate third party technology businesses with the infrastructure of banks’ and other financial institutions to provide customers with a wider variety of products and services.

These disruptions in the South African banking industry have compelled banks to question the status quo and has forced them to adopt new business models, invest in new technology and more importantly build a partner ecosystem beyond the financial industry.

Agenda:

17:00 – 18.00: Networking Drinks

18:00 – 19.30: Boardroom style panel discussion

Panelist 1 – 30 min – BaaS – Moderated by
Amit Dua – President, SunTec

Panelist 2 – 30 min – Dynamic Segmentation –
Moderated by Sudheer Padiyar, SVP and Head
of EMEA Sales, SunTec

Panelist 3 – 30 min – ESG – Moderated by
Clinton Abbott, SVP and Head of Product
Management, SunTec

Panelist 4 – Mukwandi Chibesakunda,  the Chief Executive Officer of Zanaco National Commercial Bank Zambia

19:30 – 20.30: Seated 3- Course dinner with wine

20:30: Program Ends

What you can expect from this event:

Attend this thought-provoking round table discussion to understand and share your perspectives on how BaaS, Dynamic Segmentation and ESG strategies are shaping the future of Banking Industry.

BaaS: 

• Why BaaS is the way for banks to reinvent the banking value chain
• Revenue opportunities that banks can monetize to grow profitably
•  How can banks seamlessly orchestrate a BaaS ecosystem

Dynamic Segmentation:

• How Banks can offer much more personalized products/deals in near real-time
• Learnings from other industries and how Banks can adopt these
• How Data & AI can enable this for Banks

ESG:

•  Evolution of ESG in banking
•  Financial Products focused on ESG
•  Technology enabling implementation of ESG effort