The FSCA recently published a press release that the Intergovernmental Fintech Working Group (IFWG) published its first Fintech Landscaping Report on 22 January 2020.
The press release explains that Fintech is technology-enabled financial innovation which can lead to new business models, applications, processes and products, and is transforming the financial services sector globally.
The research was aimed at getting a clearer understanding of the Fintech market in order to enable policymakers and regulators to better manage risk and enable innovation.
The Fintech Landscaping Report
The press release briefly explains the findings of the report and states that the report captures data obtained in 2019 in respect of all active fintechs founded in the past eleven years that have a physical presence serving South African consumers. The report also focuses on over 200 South African-based small, start-up, agile and independent fintech businesses that support and challenge innovation in the financial sector. Through the research, the market size of each segment was estimated and international trends and fintech business models were used to determine the potential growth per segment. The research report contains recommendations in support of the Fintech sector.
As a result of this project, 2020 will see the IFWG introduce an online portal consisting of a Fintech Innovation Hub and a fintech database. The Fintech Innovation Hub will include a Regulatory Guidance Unit, a Regulatory Sandbox and an Innovation Accelerator component. The planned launch date for the portal is the first quarter of 2020.
Download the Fintech Landscaping Report: Fintech Scoping in South Africa
Background of the IFWG
A notice published by the National Treasury provides some background information on the IFWG and states that the IFWG was established in 2016 with the objective to create a forum for regulators to gain deeper insights into fintech innovation in order to regulate and foster responsible innovation to help ensure the continued efficient functioning of financial markets and financial stability, and the safeguarding of customers’ interests.
Founder members of the IFWG are the Financial Intelligence Centre, the Financial Sector Conduct Authority, the National Treasury and the South African Reserve Bank. Since its establishment, membership of the IFWG has grown to include the National Credit Regulator and South African Revenue Service.