As South Africa observes Money Smart Week, from 26 August to 1 September, the focus on financial literacy and smart money management is more crucial than ever. In today’s evolving world, understanding how to make sound decisions when transacting (sending and receiving money), as well as saving  and investing carefully, is essential for securing a solid and sustainable future. This also extends to being educated around the benefits of online transacting and the risks involved.

This moment serves as a national call to action for both individuals and businesses to enhance their knowledge and take proactive steps toward financial wellbeing and best practice.  Industry professionals aim to provide valuable insights that empower South Africans to navigate the complexities of finance and achieve their financial objectives.

10X investments –  A more informed relationship with advisors and providers

The vast majority of South Africans cannot and will not be able to afford to retire comfortably. As our 10X Retirement Reality Report for 2023/2024 reveals, just six percent of the population is on course to retire comfortably.

Tobie van Heerden, CEO of 10X Investments says: “While there’s no doubt that wide scale improvements in tackling joblessness and poverty are key to bringing that number up, democratising the retirement investment space could make a significant difference too. Every working South African should at least be able to retire at the level of comfort they’ve achieved through their working lives.”

According to van Heerden, wealth tech  allows for a much more flexible and agile relationship with their advisors. “The same, broadly speaking, is true for providers. Being able to instantly compare how much different providers charge in fees, for example, can go a long way to ensuring that you’re getting the most out of your retirement investment products,” says van Heerden.

Technology has also helped improve the products that providers can offer. Artificial Intelligence , for example, means that retirement product providers can pick up market signals far quicker than they’d be able to manually.

“It’s additionally allowed them to offer products that are much more appealing to their customers. Easy-to-use retirement calculators, for example, can be much more accessible than trying to follow an advisor’s calculations in person. Similarly, comparison tools can make it easier for someone to tell whether they’re getting the best possible returns from their current provider or should consider switching,” adds van Heerden.

Onafriq – Empowering financial literacy and security

Mobile money has exploded across African economies, becoming a powerful enabler of financial inclusion by bringing previously unbanked populations into the financial system. However, as the demand for digital financial services grows, so does the need for robust security measures. Cyber threats are evolving alongside the digital economy, making it essential for consumers to stay vigilant and informed.

Making sound decisions when transacting, whether sending or receiving money, is paramount. Onafriq prioritises cybersecurity as a cornerstone of its operations, ensuring that users are protected from fraud and cyber threats. Partnering with ThetaRay, a leader in AI-powered transaction monitoring, exemplifies Onafriq’s commitment to safeguarding customers’ financial activities.

“At Onafriq, we are at the forefront of this financial revolution, empowering millions of Africans through strategic partnerships that facilitate fast, affordable, transparent, and secure transactions,” says Omotayo Ogunlade, Chief Technology Officer at Onafriq. “Our partnerships with ThetaRay ensures that we not only provide innovative financial solutions that suit varying customer needs, but also smartly protect our users from cyber threats, fostering true financial inclusion.”

But it doesn’t stop there. True inclusion also means providing customers with multiple options, to best suit their needs. Changing customer needs have meant that virtual and physical card requirements have continued to evolve. The introduction of prepaid cards has provided a secure and flexible solution in this regard for millions whose money is stored in alternative stores of value like mobile wallets. Through Onafriq’s partnership with VGS, who specialise in securely collecting and storing payment card information for clients, and Apata, a provider of highly configurable 3D Secure ACS technology, customers and businesses alike can transact with confidence and flexibility.

Blink by MiWay – Have a plan in place

Having savings for a rainy day is so important, and as we race towards the end of the year, we can often feel stressed out.The important thing is to prioritise your affairs in order to help you to the end of the year. Having a set plan in place can make a huge difference in managing your finances and achieving your goals for the rest of the year.

“Being organised can help you beat a slump,” says Keletso Mpisane, Head of Blink by MiWay. By re-evaluating your goals and finances and adjusting so that they are still attainable and feasible for the rest of the year, you’ll feel more prepared for the months to come’’

Break up your tasks into smaller and more manageable chunks, prioritise them, make a to-do list, reflect, and plan. By doing this, your goals can become realistic again and might just give you the boost you need to tackle the rest of the year with vigour and renewed effort.

Zoho – Smart tools for SMMEs and freelancers

Even if a person does have a formal tertiary qualification in their core skills, it’s also important to keep up with new skills. These can help for potential new business owners and those just starting their freelancing journeys. Whether it’s business basics such as pricing, invoicing and taxes, marketing, or negotiation, all are important skills that can be picked up or enhanced online.

Andrew Bourne, Regional Manager, Africa at Zoho says that “this is equally valid for the tools that freelancers require to do their jobs effectively.”

While a few years ago, the software that many freelancers needed required expensive purchases or subscriptions. Today, a plethora of free and affordable versions of these tools are available to freelancers around the globe. “Zoho, for example,  has free versions of many of their productivity suite products, making them ideal for freelancers. And for those who need more advanced features, the company has localised prices. This mitigates currency fluctuations and adds certainty to a freelancer’s monthly budget,” ends Bourne.

Future Forex – Here’s how to take the pain out of your international money transfers

While it’s understandable that customers tend to use their banks for their international money transfer needs – they’re what they use for almost all other transactions, after all – there’s no doubt that they can be better served by alternative options that are filling the void between banks and customers, saving customers time and money in doing so. But what should they look for when choosing an alternative?

Future Forex CEO, Harry Scherzer advises that both individuals and businesses should identify an international money transfer provider that prides itself on righting everything that the banks do wrong. This means the provider should take a customer-first approach which blends automation, hands-on expertise and transparency. Not only do banks heavily fall short when it comes to customer service, but clients are also charged far more than they realise for these transactions.

“From an automation perspective, customers should be able to fill in simple, easy-to-use forms online, with their details automatically appearing on the provider’s system. That should speed up transactions and reduce the risk of errors,” says Scherzer.

“Beyond that, those wanting to make international money transfers should look for a provider that prioritises in-house expertise, assigning each client a dedicated Account Manager who fully understands their client’s specific circumstances. This expertise should also be available across whichever channel the customer is most comfortable using at any time.”

From ensuring secure transactions in the digital era to planning for a comfortable retirement and managing day-to-day finances, the journey toward financial stability is multifaceted. By embracing these insights and resources, individuals and businesses alike can better navigate financial challenges and set themselves up for a more secure, smart and prosperous future.

Fintech, or financial technology, refers to the integration of technology into offerings by financial services companies to improve their use of financial services. The fintech landscape in South Africa has undergone significant transformation over the past few years, driven by technological advancements and changing consumer expectations. As traditional financial institutions grapple with the rise of fintech companies, the sector presents a unique blend of disruption, regulatory challenges, and growth opportunities.

The rise of fintech in South Africa
In South Africa, fintech has emerged as a vital force, providing innovative solutions that challenge conventional banking practices. With the increasing adoption of mobile banking and digital payment systems, fintech companies are reshaping how consumers interact with financial services.

According to Statista<https://www.statista.com/outlook/dmo/fintech/south-africa>, the South African fintech market is projected to grow significantly, with the digital assets market expected to reach a volume of approximately $9.46 billion by 2028, growing at an annual rate of 5.80% between 2024 and 2028. This growth reflects a broader trend where fintech is enhancing financial inclusion, particularly among underserved populations.

Fintech plays a crucial role in addressing the financial needs of low-income individuals and communities that have historically been excluded from traditional banking systems. Many South Africans, especially those in rural areas or informal settlements, face significant barriers to accessing financial services due to factors such as geography, lack of identification, and high costs associated with traditional banking. Fintech solutions are designed to overcome these barriers by offering accessible, affordable, and user-friendly financial services through digital platforms. For instance, mobile banking applications allow users to open accounts and conduct transactions without the need for physical bank branches, which are often scarce in rural areas. This accessibility is vital in a country where, according to the Financial Sector Conduct Authority (FSCA), a significant portion of the population remains unbanked or underbanked.

Regulatory landscape
The rapid growth of fintech has not come without its challenges. Regulatory bodies in South Africa, such as the South African Reserve Bank (SARB) and the FSCA are tasked with ensuring that the fintech sector operates within a framework that promotes innovation while safeguarding consumer interests.

In recent years, the SARB established a Fintech Unit<https://www.resbank.co.za/en/home/quick-links/fintech> to explore the implications of fintech innovations on policies and regulations. This proactive approach aims to create a balanced regulatory environment that encourages innovation while addressing potential risks associated with new technologies, such as data privacy and cybersecurity<https://www.go-globe.com/banking-and-fintech-in-south-africa-in-2023/>.

Benefits of third-party IT companies
As fintech companies continue to disrupt traditional banking in South Africa, third-party IT service providers play a crucial role in facilitating this transformation by offering several key benefits to businesses. Firstly, by outsourcing IT functions to specialised providers, companies can achieve significant cost efficiency, allowing them to allocate resources more effectively and focus on core business activities while leveraging the expertise of IT professionals. Additionally, these third-party companies bring specialised knowledge and skills that may not be available in-house, particularly in critical areas such as cybersecurity, data analytics, and software development, enabling businesses to implement cutting-edge technologies without the steep learning curve typically associated with such advancements.

Furthermore, as businesses grow, their IT needs evolve, and third-party providers offer scalable solutions that can be adjusted according to changing demands, ensuring that companies can respond swiftly to market changes without incurring significant overhead costs. This outsourcing also allows businesses to enhance their focus on core competencies, concentrating on primary objectives and strategies while leaving technical challenges to experts, which can lead to improved productivity and innovation within the organisation. Finally, third-party IT companies can expedite the development and deployment of new technologies and services, providing the agility that is crucial in the fast-paced fintech environment where being first to market can offer a significant competitive advantage.

The fintech sector in South Africa is at a pivotal juncture, characterised by rapid growth, regulatory evolution, and significant opportunities for businesses. As fintech continues to disrupt traditional financial services, the role of third-party IT companies becomes increasingly vital. By leveraging the expertise and resources of these providers, businesses can navigate the complexities of the fintech landscape, enhance their operational efficiency, and ultimately drive growth.

With the right strategies and partnerships, South African businesses can harness the potential of fintech to improve customer experiences, expand financial inclusion, and contribute to the overall economic development of the country. As the regulatory environment continues to adapt, the future of fintech in South Africa looks promising, with ample opportunities for innovation and collaboration.

In the months leading up to August, more than 750 South African businesses closed their doors and went into liquidation. While that represents a decrease in closures from the same period last year, it illustrates how fragile business can be, particularly in an economy as volatile as South Africa’s.

It’s therefore critical that businesses save money wherever possible. That’s also important in South Africa, where the latest employment stats show an unemployment rate of 33.5%, representing a two-year high.

One way that businesses with field workers can achieve worthwhile savings is by using intelligent, or automated, dispatching. Whether the business is in the plumbing, construction, home repair, or maintenance space, intelligent dispatching can solve many of the costly challenges associated with organising field workers. In essence, intelligent dispatching optimises resource allocation by assigning tasks based on real-time data and predefined criteria to maximise efficiency and minimise costs.

“As a company with field-service requirements, the most important job is the one in front of you,” says Anand Subbaraj, CEO of field service management software platform Zuper, which includes intelligent dispatching in its offerings. “Whether they’re repairs, upgrades, or instals, service calls take precedence over everything else. You have a short window to assure your customer that your technician’s visit is at the right time, every time. Integrated dispatching can help you achieve that while saving on costs.”

According to the Zuper CEO, there are several ways that intelligent dispatching can save businesses money, including:

1.  Reducing variables 

Businesses that offer field services, no matter which sector they operate in, have to deal with numerous unique challenges around dispatching employees for jobs. These challenges include having a high volume of jobs to dispatch each day, a large pool of employees to assign jobs, employees that are geographically dispersed across a wide area, and contractors who work varying schedules (different days/hours). Jobs with varying durations and travel times, a need to minimise the wait time between appointments for employees (to maximise their earnings) and minimise travel time to/between homes (to save time and fuel costs) present additional challenges. Other challenges include the need to adapt to seasonal work and to efficiently dispatch technicians with variable skill sets.

“An intelligent dispatching tool can take all of these variable challenges into account,” says Subbaraj. “And once all those variables have been plugged in, it can determine the best way to assign jobs.”

2.  Streamlining workflows

Another area in which intelligent dispatching can save businesses money is streamlining workflows. These streamlined workflows, in turn, save employee time, allowing them to focus on other tasks.

“Because intelligent dispatching automates field service scheduling, the business has to spend less time manually drawing up schedules, dispatching workers to jobs, and checking that those jobs are completed to satisfaction,” says Subbaraj. “That allows the people tasked with organising those functions to focus on other things, including revenue growth.”

3. Reduced fuel and travel costs

Another benefit of intelligent dispatching technology is that it can consider all the variables it does and bring improved efficiency to field service operations. That includes the distances that field service workers have to travel between jobs.

“If field service agents drive shorter distances between jobs, that results in an immediate saving in fuel costs for the business,” says Subbaraj. “For businesses that serve more remote areas, it may also mean that agents spend less on overnight accommodation costs.”

4. Enhanced vehicle utilisation 

If travel between jobs is more efficient, that also means that the business is using its vehicles more efficiently. That not only means saving on maintenance costs, it also means that the business can grow without necessarily having to expand its fleet.

“For businesses with field service offerings, vehicles are among the most expensive and fastest-depreciating assets,” says Subbaraj. “Any savings on expenses like vehicle maintenance, insurance, and replacement can go a long way to improving a business’s financial health.”

5. Improved first-time fix rates

This might seem obvious, but when it comes to maintenance, repairs, and installations, being able to do something properly the first time is a lot cheaper than having to do it twice. By ensuring that the right technicians attend jobs at the right time, intelligent dispatching can help businesses reduce the likelihood of there being any mistakes that necessitate redoing the job. Different technicians have different skill sets and ensuring that the right skills are used at the right jobs is an important element of overall efficiency.

More than just making a challenging task simple 

Ultimately, Subbaraj says, intelligent dispatching is about more than making the challenging and time-consuming task of scheduling and dispatching simple.

“Intelligent dispatching can streamline operations, enhance efficiency, and drive cost savings, while also improving the overall customer experience, showing just how much value it can bring to a business,” he says.