The emergence of financial technology firms in the South African financial services industry
- Authors: Ngwenya, Thabani Raymond
- Date: 2024-12
- Subjects: Banks and banking -- Technological innovations , Banks and banking -- Data processing , Financial institutions -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/70012 , vital:78273
- Description: Since the 2008 financial crisis, FinTech firms have played an increasingly important role in addressing the needs of the financial services industry. Moreover, investors' increasing appetite to capitalise on FinTech technologies demonstrates a shifting paradigm in the perspective of traditional FSPs and their future role in the industry. To this end, there is cautious optimism about the long-term implications of the successful emergence of FinTech firms as mainstays of the industry. On the one hand, FinTech firms are considered the solution to facilitating an era of financial services that allows financially excluded or underbanked individuals to participate in the ecosystem in order to build wealth. On the other hand, their novelty and highrisk appetite are deemed disruptive to industry incumbents, who have sought to reign them into their sphere of control. A comprehensive review of secondary sources was conducted to gain insight into what is already known about FinTech firms and their role in the financial services industry. In particular, South African FinTech firms were investigated by interviewing employees and owners of these entities. A non-probability sampling approach was implemented, which involved purposive and snowball techniques to identify participants. In total, 14 participants took part in the study, which was enough to ensure sufficient data redundancy. The data collected were analysed in a two-stage process, initial and final coding, by applying incidentby- incident coding. Subsequently, nine themes were derived from the data analysis process, which described the practices and processes of South African FinTech firms and their environment. Although the study findings indicate that FinTech firms can be disruptive innovators, there is also a consensus that some market segments require disruption and could benefit from leveraging the innovative nature of FinTech firms. Moreover, the findings indicate that where appropriate, traditional FSPs and FinTech firms are more likely to achieve better collective outcomes through the exploration of collaborative opportunities as opposed to fierce rivalry. , Thesis (MCom) -- Faculty of Business and Economic Sciences, School of Management Sciences , 2024
- Full Text:
- Date Issued: 2024-12
- Authors: Ngwenya, Thabani Raymond
- Date: 2024-12
- Subjects: Banks and banking -- Technological innovations , Banks and banking -- Data processing , Financial institutions -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/70012 , vital:78273
- Description: Since the 2008 financial crisis, FinTech firms have played an increasingly important role in addressing the needs of the financial services industry. Moreover, investors' increasing appetite to capitalise on FinTech technologies demonstrates a shifting paradigm in the perspective of traditional FSPs and their future role in the industry. To this end, there is cautious optimism about the long-term implications of the successful emergence of FinTech firms as mainstays of the industry. On the one hand, FinTech firms are considered the solution to facilitating an era of financial services that allows financially excluded or underbanked individuals to participate in the ecosystem in order to build wealth. On the other hand, their novelty and highrisk appetite are deemed disruptive to industry incumbents, who have sought to reign them into their sphere of control. A comprehensive review of secondary sources was conducted to gain insight into what is already known about FinTech firms and their role in the financial services industry. In particular, South African FinTech firms were investigated by interviewing employees and owners of these entities. A non-probability sampling approach was implemented, which involved purposive and snowball techniques to identify participants. In total, 14 participants took part in the study, which was enough to ensure sufficient data redundancy. The data collected were analysed in a two-stage process, initial and final coding, by applying incidentby- incident coding. Subsequently, nine themes were derived from the data analysis process, which described the practices and processes of South African FinTech firms and their environment. Although the study findings indicate that FinTech firms can be disruptive innovators, there is also a consensus that some market segments require disruption and could benefit from leveraging the innovative nature of FinTech firms. Moreover, the findings indicate that where appropriate, traditional FSPs and FinTech firms are more likely to achieve better collective outcomes through the exploration of collaborative opportunities as opposed to fierce rivalry. , Thesis (MCom) -- Faculty of Business and Economic Sciences, School of Management Sciences , 2024
- Full Text:
- Date Issued: 2024-12
Fintech and the financial services industry in South Africa
- Authors: Crouse, Johann Jacques
- Date: 2019
- Subjects: Banks and banking -- Data processing , Banks and banking -- Technological innovations , Financial services industry -- Information technology , Banks and banking
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/38046 , vital:34311
- Description: A preliminary literature review indicated that little to no research exists on the Fintech phenomena in the South African context. The purpose of this study is to gain the perceptions of South African bankers on the Fintech phenomena and to develop a deeper understanding of the Fintech phenomena in the South African context. An empirical exploratory qualitative approach was employed and an interpretivism research paradigm was utilised. A detailed literature review was conducted into the Fintech phenomena as well as the financial services sector in South Africa. The use of purposive sampling was initiated, and the sample of the study consisted of five individuals who work for the largest South African banks. The data was gathered through in-depth structured interviews which consisted of ten predetermined research questions. Rich data was obtained which was then analysed through the use of content analysis and coding. This enabled the transcription of data and the extraction of codes which assisted in obtaining findings that answered the research question. Authenticity, rigor, trustworthiness and credibility criteria was applied from the onset and throughout the research study. The themes that emerged from the data analysis process were navigated so that findings could be reached by comparing the themes to previous literature. In conclusion, six themes emerged from the data analysis, namely; collaboration can create new markets and create market share, investing in Fintech to overcome legacy infrastructure by going digital, Fintech companies are more customer focused, balance regulation between protecting the industry and creating an innovative environment competition in future will be fiercer, competition is good for the performance of the financial services industry and the Fintech phenomena is positive for the banking industry. Certain findings and conclusions were drawn; regulations in South Africa do allow for innovation, regulation is not biased towards banks, banks innovate and collaborate through Fintech, Fintech is positive for the banking industry, South African banks are investing in preparation for Fintech, South African banks have limited budgets, there is no significant loss of market share for banks due to Fintech companies, market share can be gained by banks partnering with Fintech companies and the future of the financial services industry in South Africa.
- Full Text:
- Date Issued: 2019
- Authors: Crouse, Johann Jacques
- Date: 2019
- Subjects: Banks and banking -- Data processing , Banks and banking -- Technological innovations , Financial services industry -- Information technology , Banks and banking
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/38046 , vital:34311
- Description: A preliminary literature review indicated that little to no research exists on the Fintech phenomena in the South African context. The purpose of this study is to gain the perceptions of South African bankers on the Fintech phenomena and to develop a deeper understanding of the Fintech phenomena in the South African context. An empirical exploratory qualitative approach was employed and an interpretivism research paradigm was utilised. A detailed literature review was conducted into the Fintech phenomena as well as the financial services sector in South Africa. The use of purposive sampling was initiated, and the sample of the study consisted of five individuals who work for the largest South African banks. The data was gathered through in-depth structured interviews which consisted of ten predetermined research questions. Rich data was obtained which was then analysed through the use of content analysis and coding. This enabled the transcription of data and the extraction of codes which assisted in obtaining findings that answered the research question. Authenticity, rigor, trustworthiness and credibility criteria was applied from the onset and throughout the research study. The themes that emerged from the data analysis process were navigated so that findings could be reached by comparing the themes to previous literature. In conclusion, six themes emerged from the data analysis, namely; collaboration can create new markets and create market share, investing in Fintech to overcome legacy infrastructure by going digital, Fintech companies are more customer focused, balance regulation between protecting the industry and creating an innovative environment competition in future will be fiercer, competition is good for the performance of the financial services industry and the Fintech phenomena is positive for the banking industry. Certain findings and conclusions were drawn; regulations in South Africa do allow for innovation, regulation is not biased towards banks, banks innovate and collaborate through Fintech, Fintech is positive for the banking industry, South African banks are investing in preparation for Fintech, South African banks have limited budgets, there is no significant loss of market share for banks due to Fintech companies, market share can be gained by banks partnering with Fintech companies and the future of the financial services industry in South Africa.
- Full Text:
- Date Issued: 2019
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