A positive fintech outlook sets the scene for growth in South Africa where ensuring a thriving SME sector is vital for the economic and social health of the country. The fact that the number of online business lenders in SA has grown substantially in the past four years is indicative of the need for this kind of financing.
In 2015, fintech was seen as a disruptor of traditional financial services models. In 2019, globally, fintech companies are becoming formidable competitors, challenging the banking status quo and increasingly finding traction as lenders to small and medium enterprises (SMEs).
In its third global report in four years, EY went as far as to say fintech had become the “new normal” as the pace of innovation continues to accelerate. The consumer adoption rate globally, EY reported, was 64%. Emerging markets are leading the way, with South Africa and Russia sitting on 82%, just behind China and India at 87%.
The outlook on SMEs is different in that they are at a different stage of adoption. South Africa (with China and Mexico) was among the three countries surveyed for the report. SME adopters were defined as businesses that had used fintech services in the past six months for banking and payments, financing and insurance. A look at SME fintech adoption…