Factors influencing Fintech adoption among the unbanked in South Africa

Abstract

Financial technology (Fintech) has emerged as a transformative force in the global financial landscape, promising increased accessibility and efficiency in financial services. However, its adoption among unbanked populations, particularly in South Africa, remains limited, posing a significant barrier to financial inclusion and economic empowerment. This study explores the factors influencing the adoption of Fintech among unbanked South Africans, with a focus on accessibility, trust, technological literacy, user interfaces and socio-economic barriers. Through an exploratory approach, in the form of semi- structured interviews, data was collected from market research professionals with extensive research experience in the financial services and Fintech industry. The findings reveal that while there is a growing awareness of Fintech services, several key factors hinder widespread adoption, including limited digital literacy, concerns over security and trust, and challenges related to accessibility and affordability. Additionally, socio- economic factors such as income levels, infrastructure and geographic location play a significant role in shaping adoption behaviours. Based on these findings, recommendations are proposed to enhance digital literacy, increase accessibility, build trust in Fintech services, simplify user experience, tailor financial products, and foster community engagement to encourage adoption. Addressing these factors is essential for unlocking the potential of Fintech to drive financial inclusion and empowerment among unbanked South Africans, ultimately contributing to broader socio-economic development goals.