The Barriers to Fintech enablement for access to financial services in South Africa

Abstract

The research explored the perceived factors affecting access and usage of financial services, enabled through mobile money providers and Fintech’s primarily in South Africa applying a qualitative research methodology. Through in-depth, semi-structured interviews, data were gathered from a diverse sample of ten subject matter experts and consumers of Fintech products and services. The study investigated the barriers to financial inclusion and access to advanced financial services such as savings and credit in the form of loans. Each participant provided valued perceptions regarding their insights, experiences, and difficulties associated with Fintech's adoption and usage within this demographic. The study's findings indicate that Fintech adoption can significantly enhance access to financial services. However, adoption is hampered by challenges such as limited technology capability, awareness of Fintech products and services, trust issues, and cyber security concerns. This research has significant implications for product and services enablement and access, future research aimed at adopting Fintech to promote greater financial inclusivity among the banked in South Africa and the evolution of Fintechs and key players in the South African market contexts aligned to the Fintech ecosystem with key partnerships and regulatory advancements. The study's findings are expected to provide valuable insights into how Fintech is enhancing financial inclusion and addressing the barriers to Fintech adoption within the banked populations in South Africa, Ghana and Rwanda.