Fintech Application for Unbanked Minimum Wage Earners in South Africa
Date
2024
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Witwatersrand, Johannesburg
Abstract
With the high unemployment rate in South Africa, the greatest proportion of the salary earning population earns minimum wages. This is especially true within the farming and agriculture community, as the agriculture sector constitutes one of the largest contributors to the South African GDP as one of the main employers in the country. The farming sector is required to adhere to the minimum wage regulation determined by the South African government, where farm workers struggle to survive on the income that they receive, which many in this precarious financial circumstance opt to receive in cash. This business venture proposal sought to identify a solution in the form of a mobile fintech application specifically designed for minimum wage earners to use instead of a traditional banking account. The objective of venture is to help minimum wage earners to opt for a cashless method to receive their wages, enabling them to manage their finances without incurring banking fees that diminish the already limited amount on which they survive. The cost of the application is designed to be borne by their employers, the workers themselves, among others, making the product affordable and attractive, and ensuring a heterogenous revenue stream for the owner of the platform. A qualitative research methodology was used to explore the venture to identify areas of interest, as well as factors affecting the viability of such a business venture. Twenty-five interviews and questionnaires were completed through in-depth interviews with farm workers and owners. The findings have shown that there is a definite need for cheaper banking systems in this economic climate. The findings also suggested that what the product was initially intended to do would need to change to suite customer needs better, however, the pivot point created as part of a lean start- up strategy followed by the business team allowed for moving in different directions to create a successful venture. This business venture proposal can benefit from some further research in the areas of technological adoption and implementation.
Description
A research report submitted in partial fulfillment of the requirements for the degree of Master of Business Administration to the Faculty of Commerce, Law, and Management, Wits Business School, University of the Witwatersrand, Johannesburg, 2024
Keywords
Fintech, Unbanked Minimum Wage Earners, South Africa, UCTD
Citation
Swart, Wynand Petrus Hendrik Nicolaas. (2024). Fintech Application for Unbanked Minimum Wage Earners in South Africa [Master’s dissertation, University of the Witwatersrand, Johannesburg].WireDSpace.https://hdl.handle.net/10539/44473